Key Partnerships: This is the network of suppliers and partners. These partnerships may be with non-competitors, strategic partnerships with competitors, joint ventures to develop a new business, and the buyer-supplier relationship.
- Who are our key partners?
- Who are our key suppliers?
- Which key resources are we acquiring from customers?
- Which key activities do partners perform?
Key Activities: These are the actions that a company does to operate. This includes production – how does the product get designed or produced, problem solving – new solutions to customer problems – training, or network – specific software or brands.
- Which key activities do our value propositions require?
- Our Distribution Channels?
- Our Customer Relationships?
- Our Revenue Streams?
Key Resources: Key Resources are the physical, financial, intellectual, or human factors. The physical can be assets such as buildings, the intellectual may be brands or patents, the human aspect is the human resources, and the financial is cash/credit.
- What Key Resources do our Value Propositions require?
- Our Distribution Channels?
- Customer Relationships?
- Revenue Streams?
Value Propositions (to specific segments): This section describes the products or services that create value for a specific customer segment. This proposition is why customers purchase from one company instead of another. These values may be the price, speed of service, design, customer experience, quality, performance, brand, accessibility of the product/service, etc.
- What value do we deliver to this customer?
- Which problems are we helping this customer resolve?
- What bundle of products/services are we offering to this customer segment?
Customer Relationships: This describes the types of relationships a company establishes with specific customer segments. These can be personal as well as automated. Some examples are personal assistance, self-service, automated services, online communities, allow customers to write reviews, etc.
- What type of relationship does this customer segment require us to make and maintain with them?
- Which ones have we already established?
- How are they integrated with the rest of our business model?
- How costly are they?
Channels: Channels describe how a company communicates with and reaches its customer segments. This can be communication and/or distribution of the product/service.The channel includes awareness and evaluation of the product/service, how do customers purchase the product/service, how is it delivered, and what is done after the purchase.
- Through which channels do our customer segments want to be reached?
- How are we reaching them now?
- How are our channels integrated?
- Which ones work best?
- Which ones are most cost-effective?
- How are we integrating them with customer routines?
Customer Segments: These are the different groups of people or organizations your company does or aims to reach and serve. Some examples: mass market, niche market, segmentation, diversified, and various markets. Starbucks usually targets young adults, they are now targeting various segments (middle age and the young) with various products (tea and pastries).
- For whom are we creating value?
- Who are our most important customers?
Cost Structure: The cost structure describes all of the costs incurred to operate. These can be fixed or variable costs.
- What are the most important costs inherent to our business model?
- Which key resources are most expensive?
- Which key activities are most expensive?
Revenue Streams: This represents the cash a company generates from each customer segment. Other than the initial sale of the product/service, there may be fees, subscription fees, lending/renting/leasing, licensing, brokerage fees, and advertising.
- For what value is this customer really willing to pay?
- How are they currently paying?
- How much does each revenue stream contribute to overall revenue?
- For what do they currently pay?
- How would they prefer to pay?
