Tuesday, October 12, 2010

Questions a Business Model answers

A Business Model addresses some fundamental questions about the business.  To be effective, a business model should address five basic questions,  whose answers are the elements of the business model. By changing these elements a business can develop new business models.

What does a business offer?

Who does it offer the value?

How does it create value?

How does it distribute the value?

How does it earn money?

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