Sample Essay on Developing a Business Model

The importance of developing a business model for an organization is the existence of mutual dependence existence between social and inclusive business model, which means that both organization must fall the decision of the shared value and benefits, by emphasizes on the principle of better opportunity for business model expansion. This is attained when a company generates value for both the company and shareholders (Fiorentino & Laura, 2012). The business is able to identify a market, through defined structure and proposition share values and to formulate a competitive strategy.

The most business model applicable in the organizations is Osterwalder model because of its component in business model which includes relationship with customers because they serve as the market of your products and services should have a favorable relation. Distribution channel should be efficiency. More so, partner network should have a wide social opportunities and relations with networking people. Revenue model is the main source of motivation in an organization because it creates revenue (Fiorentino &Laura, 2012). Osterwalder and Pigneur model compares in creating of value, customer segment and relations, revenue sources, key resources and activities key partnerships and cost structurebuilding business and transformation.

Business model is based on theoretical framework and the benefits and risks are based on business shared value. The two models organization are similar in pattern network, use of knowledge and value chain in development of innovation models (Fiorentino & Laura, 2012). Accordingly, they are different in terms of value proposition, governance systems, profit management risk, and profit equation. This is a good proposal model for many entrepreneurs and upcoming business personnel. They are able to get a theoretical framework to develop their new business model and create shared value principle.


Fiorentino, L.& Laura, M. ( 2012). New business models for creating shared value. SOCIAL RESPONSIBILITY JOURNAL, pp. 561-577.