As I discuss in the previous article that the 9 Blocks Business Model Canvas has acquired a respectable number of loyal practitioners. The tool used by business owners and managers to plan their strategy and business model regardless to the nature of business or products. It helps the business as a concise tool for thinking through the business and keeping the key points highly visible to all the stakeholders. The graphical, one-page framework allows business manager to design, describe and/or challenge the business model.
The nine “building blocks” of the business model design template as in the the canvas that came to be called the Business Model Canvas were initially proposed in 2005 by Alexander Osterwalder. The nine blocks business model canvas template is given below for reference (Click HERE for full article).
Business Model Canvas provides a holistic view of the business as a whole through a set of comprehensive building blocks. Before start development of the model a comparative analysis on the input of each box is crucial to understand the impact of company investments and other contributing factors.
However, understanding the model has never been easy. To make the model more understandable for the users, I have prepared and presented some business model canvas examples using the template. For the example preparation, I focus on five different sector business that possess different aspects and challenges. The example companies are from the following sectors.
Sharing Economy – Uber
Global eCommerce – Alibaba
Reservation Platform – Booking.com
Social Media – Facebook
Digital Content – Netflix
The following are the business model canvas examples for mentioned businesses and industries.
1. Sharing Economy Business Model Canvas – Uber
For a sharing economy business, it is company needs to ensure the value proposition for both the partners and customer. The below Business Model Canvas example shows that Uber segmentation is also geo-demographic as the service seems to employ drivers who live in areas with the highest unemployment rates.
2. eCommerce Business Model Canvas – Alibaba
The Chinese e-commerce platform Alibaba is an ecosystem of marketplaces that connects buyers and sellers all over the world. They act as the mediator of the deals and keep a margin of each & every sale/purchase that is being done through the website. Moreover, they offer annual subscriptions to maintain their Accounts/Online Shops.
3. Reservation Platform Business Model Canvas – Booking.com
Booking.com is one of the biggest Online Travel Agencies (OTAs) that provides online accommodation reservations. Over the years Booking has been able to keep growing thanks to its expansion, acquisition of other brands, and its ability to create a sticky platform for its users.
4. Social Media Business Model Canvas – Facebook
Facebook has been a pioneer in triggering a social media revolution in the digital hemisphere. Facebook’s key properties (ecosystem) are its various platforms which all have separate apps/websites. Regardless of the nationality, background, continent or location, as long as there is Internet connectivity present, then Facebook is always available for you to access.
5. Digital Content Business Model Canvas – Netflix
Netflix provides simple self-setup on TVs, mobile phones, laptops, desktop computers, and more devices. To help customers with any issues that arise over time, they provide customer service support on the phone as well as a live chat option and help center online. To build deeper relationships and brand resonance, Netflix also engages with customers through gift card offers, social media and more.
With the same products, service, platform or technology some fails and some succeed. The ultimate outcomes of the business depend on the model you choose and interpretation of the information in blocks. Understanding how the approach works and implementing in own though process is completely different. However, the examples can help you to at least to find from where to start and to get the wheels turning in the right direction.
Most of the cases, business plan didn’t work out the way the entrepreneur intends it to. The only way to be prepared and effective in the ever-changing market is to stay dynamic and ready to act. The example stated above may serve as helping guideline for the business owners or managers.