Sample Coursework Paper on Finding Osterwalder

Business model canvas

Business model consists of different facets with a set of procedure and strategies that business must follow to make profits and it is used by organization to create income. Osterwalder and Pigneur came up with the business model canvas. The business model canvas involves three facets that include the way of thinking, operation system and capacity for value generation that helps create a successful business model for the business (Charharbaghi, et al. 2003). This model enables the user to interact with ideas and make value.

Osterwalder and Pigneur (2013), notes that business canvas model consists of nine building blocks namely, value proposition, customer segment, channels, revenue streams, cost structure, key activities, key partners, key resources and customer relationship. The canvas model helps a business to create, deliver and capture value by coming up with ideas related to a given segment. Thus, this enables the way of thinking as team to be clear and business decision to be reached (Leschke, 2013).

Separation of canvas enables the representation of each aspect of business and decisions made to yield reasonable result. Looking at each aspect in brief, the channels, customer relationships, and customer segments will enable the business to know which means to communicate with the customers, what type of relationship an organization will foster, and the target market respectively (Trimini et al. 2012). While value proposition section involves the products and services that, a business provides to create value, the key resources division involves coming up with assets to produce products and make value while key activities entails writing down of everything required to create business model. In addition, key partners are an important connection to an organization such as suppliers and associates that make business to run. Cost structures show the incurred costs a business has and revenue streams do show business revenue generation from sales (Abraham, 2013). Thus, business model canvas provides clear detail of each segment of a given business model and how it operates.

A key unique feature with the business canvas model it is easy to use and create as it was designed when trying to teach people without business skills, it gives it an advantage as the canvas has a flow and easy to understand thus, enabling inexperienced people in a team to provide ideas (Leschke, 2013). In addition, the model can be expanded and more building block or segments added depending on nature of organization or business plan. It also provides an opportunity to a company to perform analysis of its business or rival company to know the benefits and weakness of its business model while business thoughts and opinions can be immediately be written and store to generate ideas to avoid losing during brainstorming session.

The business model generation is superior compared to other business model approaches, as it is easy to use and promotes teamwork. Similarly, canvas business model can be used to promote other business models such as open business model, where a business opens up to the external market to search for new markets and create value (Trimini et al. 2012). Open business concept models can be risk as it involves operating outside the organization and testing new avenues, in contrast business generation canvas operates within and allows the business to make right choice and create value. In addition, canvas can fit different business plan since its limitation can be adjusted to fit with the needs of organization compared to open business model, which is hard to change. Thus, canvas model fits the goals of a given business and easy to work with compared to other business models.

The business model generation canvas will benefit a lot in my organization, for instance since we involve marketing and selling commodities, the canvas will be of benefit in our business in planning on customer relationship, and customer segments and channels of communicating with them to foster relations and get feedback on how they are receiving our products.

On its limitation, my organization is involved in market with other competitors. I believe this is a major limitation of the model since it does not include the idea of competition. Thus, it needs to include competition as a component to help the business analyze its rivals in the market. Furthermore, the business model canvas does not take into account the performance measurement that is vital in continued success of the business in any organization. Thus, my organization is unable to measure its performance or progress.

References

Abraham, S. (2013). Will business model innovation replace strategic analysis? Strategy and Leadership, 41(2), 31-38.

Charharbaghi, K., Fendt, C., & Willis, R. (2003). Meaning, legitimacy, and impact business models in fast-moving environments. Management Decision, 41(4), 372-382.

Leschke, J. (2013). Business model mapping:a new tool to encourage entrepreneurial activity and accelerate new venture creation. Journal of Marketing Development and Competitiveness, 7(1), 18-26.

Osterwalder, A., Pigneur, Y. (2013). Business Model Generation a handbook for visionaries, game changers and challengers. Hoboken, NJ: Wiley.

Trimini, S., & Berbegal-mirabent, J. (2012, Dec). Business model innovation in entrepreneurship. International Entrepreneurship and Management Journal, 8.4, 449-465.