Customer segments
To better meet the needs of customers, it is necessary to divide them into separate groups whose members share certain common characteristics. Such a division helps to better understand their needs and, consequently, to more accurately define the value proposition, which is one of the key aspects of the company's proper functioning.
Value proposition
Once we have determined the target groups we are focusing on, we can move on to the next element of the model. The value proposition is the set of products and services that the company wants to offer to customers in a way that meets their expectations and differentiates itself from the competition.The Osterwalder model, created by Alexander Osterwalder , is one of the most well-known business models. The Swiss economic theorist, in collaboration with 470 professionals from 45 countries, developed an innovative model, also called the Business Model Canvas, and described it in his book "Creating Business Models. A Visionary's Handbook".
But what really sets Osterwalder's model apart from traditional business models? Why can choosing a model developed by a Swiss economist generate so much more added value than other models created by well-known economists?
The Business Model Canvas is based on nine fundamental elements, integrated into the company's strategy to create value and generate profits from it. Osterwalder and his team emphasized the fundamental areas of the company:
Customers,
Offer,
Infrastructure,
Financial situation.
To better understand Osterwalder's model, it is worth taking a closer look at each of the elements of this model.
What are the elements of the Osterwalder model?
The solution we describe is used to create and describe business models. It consists of nine key elements that help to understand, describe and plan various aspects of the company. Read more about them later in this article.