Business Model Canvas Explained

What are the 9 Components of the Business Model Canvas?

Customer Segments

Customer Relationships

Channels

Revenue Streams

Key Activities

Key Resources

Key Partners

Cost Structure

Value Proposition

Let’s look into what the 9 components of the BMC are in more detail.

Customer Persona Segment

There are different customer segments a business model can target and they are;

Mass market: A business model that focuses on mass markets doesn’t group its customers into segments. Instead, it focuses on the general population or a large group of people with similar needs. For example, a product like a phone.

Niche market: Here the focus is centered on a specific group of people with unique needs and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements. An example would be buyers of sports shoes.

Segmented: Based on slightly different needs, there could be different groups within the main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.

Diversified: A diversified market segment includes customers with very different needs.

Multi-sided markets: this includes interdependent customer segments. For example, a credit card company caters to both their credit card holders as well as merchants who accept those cards.