Complete Business Model Canvas | Full Study Guide, Examples, 9 Components &
Exam Review
business model - ANS ✔✔describes the rationale of how organization creates, delivers and
capture value.
Business Model Canvas - ANS ✔✔a tool used to create and analyze business models
The 9 Building Blocks - ANS ✔✔Customer Segment, Value Proposition, Channels, Customer
Relationship, Revenue Streams, Key Resources, Key Activities, Key Partnership, Cost Structure
Customer Segments - ANS ✔✔Building block 1 describes the different groups or organizations
an enterprise aims to reach and serve or you target audience.
mass market (customer segment) - ANS ✔✔focuses on a large group of customers without
really distinguishing between different types of customers, and aims to satisfy a set of broadly
similar needs and problems.
niche market (customer segment) - ANS ✔✔A smaller part of a larger market in which
customers have more specific needs and wants. These are common in supplier-buyer
relationships, most commonly the example given is auto parts manufacturers who are very
dependent on auto manufacturers for sale of their products.
segmented market (customer segment) - ANS ✔✔market is one in which you have multiple
different groups of customers with different sets of needs and problems. In this case you would
provide the same product or service with slightly different value propositions to meet the
varying customer needs.Businesses who have segmented customer targets have very small
variations in their needs for a service. For example, a financial planner who targets a few
segments:
Net worth individuals from $0-$100k
, Net worth individuals from $100k-$150k
Net worth individuals from $150k-$250k
diversified market (customer segment) - ANS ✔✔market is similar to a segmented except that it
utilizes entirely different sets of value propositions to cater to unrelated customer segments
rather than just slightly altering the product. A company that has diversified customer segments
is serving markets with quite different needs and wants. An example could be a company that
serves both business to consumer (B2C) and business to business (B2B) markets.
multi-sided platforms markets (customer segment) - ANS ✔✔markets that serve
interdependent customer segments. For example, a credit card company interacts with both the
card holder, and the merchants who accept those cards
value proposition - ANS ✔✔It describes the bundle of products and services that create value
for a specific customer segment. It is the reason why customers turn to one company over
another.
elements of value proposition - ANS ✔✔newness, performance, customization, getting the job
done, design, brand/status, price, cost reduction, risk reduction, accessibility, convenience
newness - ANS ✔✔new set of needs that customers previously didn't perceive because there
was no similar offering.
performance - ANS ✔✔improving the products and services
customization - ANS ✔✔making products to meet a particular customer's needs or
wants/customize
Getting the job done - ANS ✔✔Value is created by simply helping a customer complete a task..
Exam Review
business model - ANS ✔✔describes the rationale of how organization creates, delivers and
capture value.
Business Model Canvas - ANS ✔✔a tool used to create and analyze business models
The 9 Building Blocks - ANS ✔✔Customer Segment, Value Proposition, Channels, Customer
Relationship, Revenue Streams, Key Resources, Key Activities, Key Partnership, Cost Structure
Customer Segments - ANS ✔✔Building block 1 describes the different groups or organizations
an enterprise aims to reach and serve or you target audience.
mass market (customer segment) - ANS ✔✔focuses on a large group of customers without
really distinguishing between different types of customers, and aims to satisfy a set of broadly
similar needs and problems.
niche market (customer segment) - ANS ✔✔A smaller part of a larger market in which
customers have more specific needs and wants. These are common in supplier-buyer
relationships, most commonly the example given is auto parts manufacturers who are very
dependent on auto manufacturers for sale of their products.
segmented market (customer segment) - ANS ✔✔market is one in which you have multiple
different groups of customers with different sets of needs and problems. In this case you would
provide the same product or service with slightly different value propositions to meet the
varying customer needs.Businesses who have segmented customer targets have very small
variations in their needs for a service. For example, a financial planner who targets a few
segments:
Net worth individuals from $0-$100k
, Net worth individuals from $100k-$150k
Net worth individuals from $150k-$250k
diversified market (customer segment) - ANS ✔✔market is similar to a segmented except that it
utilizes entirely different sets of value propositions to cater to unrelated customer segments
rather than just slightly altering the product. A company that has diversified customer segments
is serving markets with quite different needs and wants. An example could be a company that
serves both business to consumer (B2C) and business to business (B2B) markets.
multi-sided platforms markets (customer segment) - ANS ✔✔markets that serve
interdependent customer segments. For example, a credit card company interacts with both the
card holder, and the merchants who accept those cards
value proposition - ANS ✔✔It describes the bundle of products and services that create value
for a specific customer segment. It is the reason why customers turn to one company over
another.
elements of value proposition - ANS ✔✔newness, performance, customization, getting the job
done, design, brand/status, price, cost reduction, risk reduction, accessibility, convenience
newness - ANS ✔✔new set of needs that customers previously didn't perceive because there
was no similar offering.
performance - ANS ✔✔improving the products and services
customization - ANS ✔✔making products to meet a particular customer's needs or
wants/customize
Getting the job done - ANS ✔✔Value is created by simply helping a customer complete a task..
