Business Model (Bm) Canvas Is a Strategic Management Tool

Business Model (BM) Canvas is a strategic management tool, which allows us to develop and sketch out new or existing business models. It is a visual template pre-formatted with the nine blocks of a business model:

1. Key Activities: The activities necessary to execute a company's business model.

2. Key Resources: The resources that are necessary to create value for the customer.

3. Partner Network: The business alliances which complement other aspects of the business model.

4. Value Proposition: The products and services a business offers. Quoting Osterwalder (2004), a value proposition "is an overall view of .. products and services that together represent value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another."

5. Customer Segments: The target audience for a business' products and services.

6. Channels: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy.

7. Customer Relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.

8. Cost Structure: The monetary consequences of the means employed in the business model.

9. Revenue Streams: The way a company makes money through a variety of revenue flows. A company's income.

Exercise 1 Business Model Canvas

During the early quarters of this year, I observed a very interesting hobby of teenagers which is longboarding. Several friends of mine are already hooked up onto this hobby and I can see the eminent success of this sport in our region. So I have decided to choose a Online Skate Shop business for my business Model Canvas.

1. Customer Segment/s;

The customer segments that I choose is the skate-sport Enthusiasts, it includes...