Business Model Canvas: Uses & Examples| Business Strategy

Business Model Canvas: Uses & Examples| Business Strategy

The Business Model Canvas Examples

To plan a business strategy and business model, business owners and managers use the business model canvas. From niche markets to mass markets, this tool is appropriate for planning any type of business.

Here are some examples of our business model canvas template used in this article.

Creating a Business Model Canvas

9 main building blocks – An overview

The business model canvas template consists of nine main building blocks:

  1. Key Partners. A strategic relationship is one between your company and another company or individual.
  2. Key Activities. An integral part of your company’s operation.
  3. Key Resources. Your company’s value proposition is delivered by your assets.
  4. Value Proposition. Your company tries to meet the fundamental needs of its customers. You are here for a reason.
  5. Customer Relationships. Customer interactions and customer support your company provides.
  6. Channels. How your company delivers products and value propositions to customers through different methods.
  7. Customer Segments. You interact with a variety of customer groups.
  8. Cost Structure. Spending on operations by a company. How much of your company’s costs are focused on cost.
  9. Revenue Streams. Cash flow sources for your company.

Business Model Examples

Listed below are a few examples of different types of business models:

1. Example of an automobile company

This first business model canvas illustrates the business model of an automobile manufacturer. This example illustrates a company that is focused on safety, reliability, style, and mass appeal. An example of this type of business would be Honda or Toyota.

2. Amazon Example

In the second example, we look at an e-commerce company’s business model canvas. This business model canvas example will focus on Amazon, one of the largest e-commerce companies in the world.

Business Strategy vs. Business Model: What’s the difference?

It is important to distinguish between business strategy and business model when setting up and running a business. Owners must choose the right strategy for their business if they want to reach their goals and achieve success. Business models can be selected among several and, sometimes, a new model can be incorporated into strategic thinking.

Business strategy: what does it mean?

Businesses use strategies to achieve goals in the market by creating a contingency plan of action. Specifically, it describes the situations that a business might find itself in in order to achieve its market goals and specifies how it should deal with each of them.

Manufacturing, operations, and finance decisions are made based on a business strategy. Managing risks effectively is also facilitated by it. In this approach, the goal isn’t to choose specific goals in the market but to learn how to achieve them once they have been determined.

A business strategy is formulated after an entrepreneur formulates a business idea and sets targets for the business. The following are a few examples, but not all:

  • Finding new opportunities and maximizing existing ones.
  • Allocating and managing resources efficiently.
  • Hedging future market disruptions and managing risks effectively.

How does a business model work?

Businesses use business models to plan how they will operate and make money in a given market. In addition to describing all relevant business processes and how the business will interact with the market, it also explains how the business will conduct business with other stakeholders.

Business models are blueprints for how a company will succeed in its existing market environment and add value. Planning, manufacture, sales, and marketing are the three main components of a business model.

Business Model Types

1. Hard manufacturer

A business transforms raw materials into finished products. Manufacturing in resource-intensive industries like mining and agriculture is an example.

2. Soft manufacturer

As raw materials are transformed into finished products, value is created for the business. Volkswagen and General Motors are examples of soft manufacturers.

3. Aggregator

In the business, different products and services are combined to create value. Supermarkets and department stores are examples of aggregators.

4. Franchise-based

Offering a uniform service across multiple locations creates value for the business. A fast-food restaurant and a cinema are examples.

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