Alexander Osterwalder

Business Model Generation

1. IDEA 1

   A business fits on one page

   Osterwalder and Pigneur offer the Business Model Canvas, a simple one-page tool that describes how an organisation creates, delivers and captures value. It divides a business into nine building blocks that can be sketched and discussed together.

2. IDEA 2

   Know your customers

   The canvas begins with customer segments, the groups of people or organisations a business serves. Different segments may need different offers. In the authors' view, knowing exactly who you serve is the first step, since everything else on the canvas depends on it.

3. IDEA 3

   Offer clear value

   The value proposition describes what problem the business solves or what need it meets for customers. It is the reason customers choose it. In the authors' view, a business with a weak or unclear value proposition struggles, however well it handles the other blocks.

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