The Business Model Canvas is a framework devloped by Alexander Osterwalder. The framework guides a company to strengthen and develop its value proposition.
At the centre is the Value Proposition. The Value Proposition Canvas tool should be used to look at this in detail.
The Business Model Canvas looks at how the company's most important activities, resources and relationships can be used to support the value proposition.
✅ Clarity: Simplifies complex business planning into a one-page visual framework.
🧩 Alignment: Unifies teams around a shared understanding of how the business creates and delivers value.
🔄 Iteration: Supports rapid prototyping, pivoting, and innovation of business models.
🧭 Strategic Insight: Helps identify opportunities, weaknesses, and gaps in the business structure.
| 📦 Building Block | 📖 Definition |
|---|---|
| 👥Customer Segments | How customers are broken down into sections that your business aims to serve. |
| 🎁Value Propositions | Most important part of the model - how products and services create value for customers. |
| 🚚Channels | The ways in which you deliver your value proposition to your customers. |
| 🤝Customer Relationships | The types of relationships you establish with your different customer segments. |
| 💰Revenue Streams | The revenue your business generates (recurring income, once-off sales, subscriptions). |
| 🏭Key Resources | The most important assets required to make your business model work : people, finance and physical (machinery, technology). |
| 🛠️Key Activities | The most important actions needed to make the value proposition effective. |
| 🤝🏽Key Partnerships | The external companies, suppliers, or partners who help you deliver value. |
| 💸Cost Structure | All the expenses involved in operating your business model: variable and fixed. |
| 📦 Building Block | 🚖 Uber Example |
|---|---|
| 👥Customer Segments | Riders (commuters, tourists), Drivers (gig workers), Businesses (Uber for Business) |
| 🎁Value Propositions | Fast, affordable, and reliable transportation; income opportunities for drivers |
| 🚚Channels | Mobile app, website, partnerships with payment systems and businesses |
| 🤝Customer Relationships | In-app support, rating system, loyalty programs, promotions |
| 💰Revenue Streams | Ride commissions, surge pricing, Uber Eats, subscriptions (Uber One) |
| 🏭Key Resources | Technology platform, driver network, brand reputation, algorithms, data |
| 🛠️Key Activities | Platform development, driver onboarding, app maintenance, regulatory compliance |
| 🤝🏽Key Partnerships | Drivers, car leasing companies, payment processors, city regulators |
| 💸Cost Structure | Tech infrastructure, driver incentives, marketing, legal & compliance, customer service |
🎯 Value Proposition: Start here. Use the Value Proposition Canvas to identify:
⚙️ Key Activities: Define the most important actions needed to deliver your value proposition.
🏭 Key Resources: Identify the critical assets you need.
🤝🏽 Key Partnerships: List external partners or suppliers who help you operate efficiently.
👥 Customer Segments: Define the main groups of customers you serve.
🚚 Channels: Specify how you reach and deliver value to each customer segment.
🤗 Customer Relationships: Describe the type of interaction you maintain with customers.
💰 Revenue Streams: Identify how your business earns income.
💸 Cost Structure: Outline all major costs tied to running your business model.
✅ Once completed, review for balance: Is your value proposition supported by the right activities, resources, and partners? Are your channels aligned with your customer segments? Does the revenue justify the costs?