What is the Business Model Canvas?

Canvas is one of the modern strategies in the world of entrepreneurship. It is presented in a single page that organizes the communication process between the organization and its customers, illustrating the value that companies or organizations are willing to offer to the community. It resembles a fundamental reference upon which modern businesses and projects rely.

This model consists of several elements, which are:

• Value Proposition:

Value is the solution you want to provide to address a problem or challenge faced by customers. All successful companies or organizations work on solving problems and meeting needs.

• Customer Segments:

Customer segments refer to dividing the target audience into different segments based on specific criteria such as their geographic regions, ages, or even income levels.

• Key Activities:

Key activities encompass all the actions that the company or organization must take to initiate its operations or production.

• Key Resources:

Resources include all the requirements that the company or organization needs to start the production process, such as raw materials, employees, and more.

• Channels:

The concept of channels here is broader than it appears to be. In the Business Model Canvas, channels represent the methods used to communicate with customers or the means used to deliver value to the audience.

• Customer Relationship:

It is about understanding the nature of your relationship with customers and how you want it to be. For example, companies targeting young people often have informal relationships with customers.

• Key Partners:

These are the entities, organizations, or even individuals who assist you in the production and distribution process, such as companies, suppliers, distributors, investors, and others.

• Cost Structure:

The production process does not take place without cost. Each product manufactured costs the organization. In this model, costs are collected and divided to minimize or reduce them.

• Revenue Streams:

This section clarifies how the company or organization can generate income and profit, where they come from, and which of them is more beneficial in terms of value.

Despite the many benefits the Business Model Canvas offers, it does not provide an in-depth study under each section; instead, it is merely a tool to organize and study the idea in a simple and uncomplicated manner.

And thus, the final structure of the Business Model Canvas is:

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