Business model Definition
A business model (also called a business design) is the mechanism by which a business intends to generate revenue and profits. It is a summary of how a company plans to serve its customers. It involves both strategy and implementation. It is the totality of:
- How it will select its customers
- How it defines and differentiates its product offerings
- How it creates utility for its customers
- How it acquires and keeps customers
- How it goes to the market (promotion strategy and distribution strategy)
- How it defines the tasks to be performed
- How it configures its resources
- How it captures profit