Description

A business model is simply a plan describing how a business intends to make money. It explains their customer bases, how students deliver value to them, and the related financing details and BMC enables them to define these different components on a single page. BMC is a strategic management tool used by managers to develop new business models and present existing ones, define, and communicate a business concept or idea fast and easily. They may envision and evaluate their business idea or concept with a one-page paper. This one-page document contains nine boxes representing distinct critical parts of a business. It works through the fundamental elements of a company or product, consistently organising a concept. The right side of the BMC is dedicated to the customer (external), while the left side is dedicated to the company (internal). The value proposition, which is the exchange of value between their firm and their consumer or clients, brings together external and internal elements.

The business model canvas was initially developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘Business Model Generation as a visual framework for planning, developing, and testing the business model(s). The table below presents definitions of business model as perceived by several leading scholars.