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A business model definition framework that outlines how a company creates, delivers, and captures value. It describes the rationale of how an organization operates, generates revenue, and interacts with its customers. Key components of a business model typically include:
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Value Proposition: The unique value or benefits that a company offers to its customers, distinguishing it from competitors.
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Customer Segments: The specific groups of people or organizations that the business aims to serve.
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Channels: The various means through which a company delivers its products or services to its customers, including distribution and communication methods.
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Customer Relationships: The types of relationships a business establishes with its customers, which can range from personal assistance to self-service.
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Revenue Streams: The sources of income generated by the business, such as sales, subscriptions, or advertising.
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Key Activities: The crucial actions and processes that a company must perform to deliver its value proposition effectively.
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Key Resources: The assets, both tangible and intangible, that are necessary to operate the business and deliver value to customers.
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Key Partnerships: The external organizations or entities that help the business achieve its goals, including suppliers, alliances, and joint ventures.
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Cost Structure: The financial implications of operating the business, including fixed and variable costs.
Overall, a business model serves as a blueprint for how a company functions and competes in its market, guiding strategic decisions and operational efficiency.
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