The elements of a business model are:

1. value proposition: the value that a company can provide to consumers through its products and services. The value proposition confirms the practical significance of the company to consumers.

2. Consumer target group: the consumer group targeting the company. These groups have some similarities that enable companies to create value. The process of defining consumer groups is also called market segmentation.

3. Distribution channels: ways for companies to reach consumers. Here is how the company develops its market. It involves the company's marketing and distribution strategy.

4. Customer relationship: the relationship established between the company and its consumer groups. This is customer relationship management.

5. Value distribution: the distribution of resources and activities.

6. Core competence: namely, the competence and qualification required by the company to implement its business model.

7. Value chain: related support activities to provide customers with the value of products and services.

8. Cost structure: monetary description of tools and methods used.

9. Income model: that is, the way the company creates wealth through various income streams.

Extended data:

Precautions:

1. A successful business model provides unique value. Sometimes, this unique value may be a new idea; More often, it is a unique combination of products and services. This combination can not only provide added value for customers, but also get the same income at a lower price or get more income at the same price.

This business model is hard to imitate. By establishing its own uniqueness, such as careful care for customers and unparalleled execution ability, the company has raised the threshold for entering the industry, thus ensuring that the source of profits is not infringed.

3. A successful business model is down-to-earth. Enterprises should live within their means. This seems to be self-evident, but it is not easy to achieve the goal year after year, day after day.

Baidu Encyclopedia-Business Model

Baidu Encyclopedia-Business Model Analysis