BMC

Question 1

what is a Business Model Canvas?
who developed BMC

Answer 1

description of an idea into create, deliver and capture a value.
Alexander Osterwalder In 2005
it consists of 9 blocks covering 4 business areas( customers, offer, infrastructure, financial viability).

Question 2

Describe BMC Model

Answer 2

1. customer segment- a) Mass market
   b) Niche
   C) Segmented
2. Value Preposition- a) newness
   b)Performance
   c) Design/ Brand status
   d)Convience/ Accesibility
3. CHANNELS- a) Direct: sales force, web, stores
   b) Indirect: partners, wholesalers, distributors…
   c) Inbound and Outbound logistics
4. CUSTOMER RELATIONSHIPS
   a) Customers acquisition (ads, word-of-mouth)
   b) Customer retention (newsletters, targeted promotions)

Types of Customer relationship
Customer care services
Automated service
Co-creation-inviting customer to review

5. Revenue Streams
   a) Asset sale: Selling of the asset

b) Usage fee/Renting: by the use of a particular service (Renting out assets)

c) Subscription fee: selling access to a service (e.g. iTunes store)
d) Brokerage fee (commission) intermediation services performed on behalf of two parties (e.g. brokers and real estate agents)

6. Key Resources

a) Physical: facilities, building, vehicles, distribution network, Point of Sales (PoS)
b) Intellectual: brands (Nike, Sony), knowledge software), copyrights
c) Human: Employee
d) Financial: cash, credit

7. KEY ACTIVITIES
   a)Production: Design, make & produce, delivery a product
   B)Problem solving: coming up with new solutions for individual customer problems

C)Platform / Network: e.g. Visa-merchants, customers and banks

8. KEY PARTNERSHIPS
   Ex. Suppliers, strategic alliances, joint-ventures, buyers………..
9. COST STRUCTURE
   a) Fixed costs: e.g. salaries and rents
   b) Variable costs: they vary with the volume of goods produced

Question 3

write down what blocks are included in the $ business areas

Answer 3

Customer- customer segment, customer relationship
b) Offer- key activities, value proposition
c) Infrastructure-key resources, channels
4)- Revenue stream, Cost structure.