3 Business Models Free Online FlashCards

What does a business model explain?

A business model explains how a venture creates value for customers, delivers that value, and captures value for itself.

What does a value proposition communicate?

A value proposition describes the benefit customers can expect and why the offering may be useful to them.

What role do channels play in a business model?

Channels explain how an offering reaches customers, such as through a website, a store, or a delivery service.

What are revenue streams?

Revenue streams describe how the venture receives value in return, typically through customer payments.

Why do sales alone not prove a business model is sustainable?

Sales alone do not establish sustainability; revenue must be considered alongside the costs the venture incurs.

What are key activities?

Key activities are the most important things a venture must do to make its business model work.

What are key resources?

Key resources are essential assets and capabilities that make the venture’s activities possible, such as expertise, equipment, or technology.

How can key partners support a venture?

Key partners can provide resources or perform activities that the venture does not handle itself.

What may need to change when a venture changes its target customer?

Changing the target customer may require changes to the value proposition, channels, activities, and cost structure.

What value proposition might a meal-kit service offer busy households?

A meal-kit service may offer busy households convenient, pre-portioned ingredients and recipes.

How might a meal-kit service earn revenue?

It can capture value by charging customers per box or through subscriptions.

Name key activities for a meal-kit venture.

Its activities might include menu planning, ingredient sourcing, packing, and delivery coordination.