Business Model Elements

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From here we will take you to discussions of the 9 building blocks of a business model.


  • core capabilities: The capabilities and competencies necessary to execute a company's business model.
  • partner network: The business alliances which complement other aspects of the business model.
  • value configuration: The rationale which makes a business mutually beneficial for a business and its customers.


  • value proposition: The products and services a business offers.


  • target customer: The target audience for a business' products and services.
  • distribution channel: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy.
  • customer relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.


  • cost structure: The monetary consequences of the means employed in the business model.
  • revenue: The way a company makes money through a variety of revenue flows. A company's income.