This document provides an overview of developing an effective business model. It discusses the key components of a business model including the core strategy, strategic resources, partnership network, and customer interface. The core strategy section examines the mission statement, product/market scope, and basis for differentiation. Strategic resources analyzes a company's core competencies and strategic assets. The partnership network explores suppliers and key relationships. Finally, the customer interface delves into the target market, fulfillment and support options, and pricing structures. Developing a strong business model is important as it serves as an ongoing feasibility analysis and articulates how all business elements work together cohesively.

1. A Presentation on
Developing an Effective
Business model

2. A combined effort of
SERIAL NO. NAME OF MEMBERS ID. NO.
01. FAHIM HASSAN 19-016
02. MD. SADID UDDIN 19-020
03. MD. HAFIZUR RAHMAN 19-022
04. MD. SHAHALAM KHAN 19-026
05. TANVEER AL JAMEE 19-104

3. Discussion at a glance
 Business model
 Importance of business model
Emergence of business model
 Potential flaws of business model
 Components of business model

4. What is a model?
A
model
A plan or
Diagram
Used to
make
something
Used to
describe
something

5. What is a business model?
How it competes
Utilizes its resources
Structures its relationships
Interfaces with customers
Creates value

6. Business model: an example

7. Importance of a business model
 Serves as an ongoing extension of feasibility analysis
 Focuses attention on how all the elements of a
business fit together and constitute a working whole.
 Describes why the network of participants needed to
make a business idea viable are willing to work
together.
 Articulates a company’s core logic to all stakeholders.

8. Emergence of a business model
• The Value Chain
• The string of activities that moves a product from the
raw material stage, through manufacturing and
distribution, and ultimately to the end user.
• Developed by an academic researcher
• Used to identify opportunities
• Explains how business models emerge and develop
• Consists of primary activities and support activities

9. Emergence of a business model
• Primary activities
• Support activities
Firm
Infrastructure
Human
Resource
Management
Technology
Development
Resource
Procurement
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
and Sales
Service

10. Potential flaws of a business model
A
complete
misread of
the
customer
1
Unsound
economics
2

11. Components
of Business
Model
Core
Strategy
Strategic
Resources
Partnership
network
Customer
interface

12. Mission
statement
• Existence
• Accomplishment
• Neither broad nor
narrow
Product/market
scope
• Product choice
• Market focus
Basis for
differentiation
• Cost leadership
strategy
• Differentiation
strategy
Core Strategy

13. Strategic Resources
Core
competencies
Strategic assets

14. Core competency
Core
Competency
A resource
or capability
Works as a
competitive
advantage
Difficult to
imitate
Allows to
differentiate
Creates
unique
value
Helps to
grow
Establishes
strong
position

15. Strategic assets
Strategic
assets
Plant &
equipment
Location
Brands
Patents
Customer
data
Qualified
staff
Distinctive
partnership

16. Partnership network
Partnership
Network
Suppliers
Key
relationships

17. Suppliers
Traditional
view
1 Today’s
view
2

18. Key relationships
Key
relationships
Joint
venture
Network
Consortia
Strategic
alliance
Trade
associations

19. Customer interface
Customer
Interface
Target
market
Fulfillment
and
supportPricing
structure

20. Target market
 Limited group of individuals or businesses
 Firms go after or tries to appeal
 Affects everything

21. Fulfillment and support
Fulfillment
Licensing the product
to existing companies
Manufacturing the
product by itself
Partnering with a
company
Support
Delivery and
installation
Financing
arrangements
Customer training
Warranties,
Guarantees & repair
Information through
websites

22. Pricing structure
Flat rate
Hourly
rate
Freemium