Business Model Canvas:

A Framework for
Success
The Business Model Canvas (BMC) is a strategic management tool
used to visualize and understand how a company operates.
Key Partners
Suppliers Distributors

Organizations that provide raw materials, components, or Companies that help sell and distribute products or services.
services.
Key Activities
1 Production 2 Marketing & Sales
Developing and Promoting and selling
manufacturing products or products or services to
services. target customers.

3 Customer Service
Providing support and assistance to customers.
Key Resources
Physical Assets Human Capital
Buildings, machinery, and Employees, skills, and
equipment. expertise.

Intellectual Property Financial Resources

Patents, trademarks, and Cash, credit, and investments.
copyrights.
Value Proposition

Value Proposition
Benefits and solutions offered to customers.
Customer Relationships
1 Personal Assistance
Direct interaction with customer service representatives.

2 Self-Service
Providing online resources and FAQs for customer
support.

3 Automated Interaction
Using chatbots and automated emails for quick
responses.
Channels
Online Channels
Websites, social media, and online marketplaces.

Offline Channels
Physical stores, trade shows, and direct sales.

Mobile Channels
Mobile apps, SMS, and mobile advertising.
Customer Segments

Mass Market
1 Targeting a broad audience with a general product or service.

Niche Market
2
Focusing on a specific group of customers with specialized needs.

Segmented Market
3 Dividing customers into groups based on demographics,
behavior, or other factors.
Cost Structure
Fixed Costs
1
Consistent expenses regardless of production or sales volume.

Variable Costs
2
Expenses that vary directly with production or sales volume.

Operating Costs
3 Expenses related to running the business, such as rent,
utilities, and salaries.
Revenue Streams

1 2
Product Sales Service Fees
Generating revenue by selling Charging for services rendered.
tangible goods.

3 4
Subscriptions Advertising
Recurring payments for access to Earning revenue from displaying
a service. advertisements.
 Highlights the essential actions the Details the type of relationship the
business must take to deliver its business establishes with its
value proposition. customers.
Example: Product development, Example: Self-service, personal
External companies marketing, logistics. Outlines the unique assistance, community building.
Defines the specific
or entities that help products or
groups of people or
the business services that solve
organizations the
succeed. customer problems
business serves.
Example: Suppliers, or meet their
Example: Young
distributors, needs.
professionals, small
strategic alliances. Example:
Identifies the assets required to
Describes how the business delivers businesses, tech
deliver value propositions and Affordable, high-
operate. value to its customers. enthusiasts.
Example: Intellectual property, quality streaming Example: Online platforms, retail
stores, mobile apps.
skilled staff, manufacturing facilities.
services (Netflix).

Defines the major costs involved in Explains how the business earns
operating the business. money from its value propositions.
Example: Manufacturing costs, Example: Subscription fees, one-time
employee salaries, marketing payments, ads.
expenses.
Purpose of the Business Model Canvas
• Simplifies complex business models into a single-page visual format.

• Encourages brainstorming and collaboration across teams.

• Helps identify gaps, challenges, and opportunities in a business.
• Aligns stakeholders around the organization’s strategy and goals.

Benefits of Using the BMC

• Provides a clear and concise overview of the business model.
• Encourages innovation by identifying areas for improvement.
• Helps validate business ideas before full-scale implementation.
• Facilitates strategic planning and communication with stakeholders.