Business Model Canvas is one of the most popular tools for analyzing a new or existing business. An entrepreneur can upgrade or even completely rebuild the business with this framework. One of the most vital constituents of the canvas is the value proposition. It allows the company to highlight its strengths and unique features, ensuring the reasons why consumers should buy the product from a certain company. The whole company’s functioning is practically impossible without this criterion. The second crucial factor is the key activities and partnership. Understanding which companies and stakeholders are ready to support the business from ideological and financial perspectives is vital. Another aspect worth mentioning is the cost structure, which ensures the general representation of the money that could be spent on particular planned activities. The detailed design and discussion of these factors can be efficiently applied to build a successful business. Other aspects are related to the mentioned above parameters.
An example of this model’s successful implementation is Netflix’s simple canvas showing the whole business’s activities. The organization’s value proposition is to get entertainment content at any given time. The relationship with clients is just as simple. The clients need to be given the opportunity to choose the range and use the recommendation system. The canvas states that the service should be made available on any device (Pereira, 2022). Key partners are highlighted as producers and cable companies all over the world. The main costs are reported as production and licensing. Therefore, the Netflix example highlights the aspects which were defined as most vital in this essay (Pereira, 2022). The business model considered mentioned parameters as a basis for the whole company’s functioning.
Reference
Pereira, D. (2022). Netflix business model. The Business Model Analyst.