9 Blocks of Osterwalder's Business Model
Posted: Sun Dec 22, 2024 8:34 am
sterwalder's business model framework consists of nine blocks located on one page, each of which corresponds to a specific aspect of the business.
Clients
At this stage, buyers are segmented, that is, they are divided into categories taking into account special characteristics, preferences, solvency, etc. The need for segmentation arises in the following cases:
diversity of customer needs and requests;
use of different promotion channels;
lack of a unified strategy for interacting with the audience;
different volumes of consumption by individual customer groups;
the influence of various factors during the email lists uk purchasing decision-making process.
Clients
Source: shutterstock.com
Segmentation is easier if you have an idea of your market type:
Mass market - here there is no need for customer segmentation. All consumers have similar characteristics, and the marketing strategy is uniform everywhere. This could include a company producing clothing for the mass consumer (e.g. Zara) or household chemicals (e.g. P&G).
Niche market - when a business is limited to a single segment, the company works with a specific group of consumers. An example is the company "New Cloud Technologies", which is best known as the developer of the "My Office" system, designed exclusively for government agencies.
A fractional niche market involves interaction with several categories of specific clients. Such activities are carried out by the Kalashnikov Group of Companies (it sells products to individuals and the military-industrial complex) or Uber (clients are divided into premium, business and economy classes).
Multi-profile market - sales are conducted in several different market segments, covering a diverse audience. Among the largest participants in this market are Yandex and Sber, offering a wide range of goods and services in many areas. Also worth mentioning here is Amazon.
As a result of filling out this block, you should get a characteristic of each consumer segment: gender, age, income, interests, hobbies, region of residence, needs.
Value Proposition
This stage consists of finding answers to two questions:
What do you offer to the client? The most important characteristics of all your products (price, corporate style, etc.) should be indicated here.
How does purchasing your product help the customer solve his problems? What advantages can you give the customer? It is common to highlight qualitative advantages (popular brand, external attractiveness) and quantitative ones (price, service life, power).
If the company has not yet been formed or the product is not yet released, then Osterwalder's value model allows you to quickly understand what significance your project has in the future: what qualities will the company or product need to increase market demand and obtain undeniable competitive advantages, and how this can be achieved.
Key activities
The efficiency of the model as a whole depends on the content of this block. You should choose the direction of your business:
Production.
Provision of services.
Development of IT services and platforms, etc.
Key Resources
How can your brand and products be unique to the consumer? Determine whether you have enough time and money, whether you need more staff, and business contacts may also be helpful.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Customer Relationships
When forming this block, you need to pay attention to the following points:
What format of interaction with the client will meet his expectations? For example, the consumer plans to seek advice from your representatives in person or online, or he makes a purchase decision independently, through logical judgments. Finally, the client may view your business as based on automated systems and using artificial intelligence mechanisms that can better understand the user's problems.
Does this format take into account the specifics of doing business? Let's say if it is important for the buyer to communicate live, and your service is completely automated and occurs without the participation of managers, then you will have to make certain adjustments.
What are the costs associated with implementing a suitable interaction format? If the client is attracted by the idea of seeing a product presentation in virtual reality, your company may not be ready for such an investment. You should consider other options, such as 3D animation on the site.
Will the scope of the selected interaction format expand?
Distribution channels
At this stage, you should determine how your products will be sold. In doing so, rely on competitors' models, your own capabilities, and find out how it will be more convenient for customers to purchase your product:
directly or through intermediaries,
online or offline,
wholesale or retail, etc.
Key partners
You need to not only describe your partners and areas of joint work, but also draw a conclusion about what benefits they can derive from cooperation with you. There are several options: cost reduction, sales expansion, etc. Additional arguments in favor of cooperation contribute to strengthening your relationship.
Costs
In this block, you need to list all costs (variable and fixed) that may arise during your business, including rent, website development, staff salaries, and tax payments.
It is also recommended to answer two questions:
Which group of expenses is the most significant?
Which resources require the greatest investment, and are they those that are critical to the project?
The key is to identify the cost categories that are of primary importance and find ways to optimize them. If you cannot limit these costs, reduce expenses in other, less important items.
Clients
At this stage, buyers are segmented, that is, they are divided into categories taking into account special characteristics, preferences, solvency, etc. The need for segmentation arises in the following cases:
diversity of customer needs and requests;
use of different promotion channels;
lack of a unified strategy for interacting with the audience;
different volumes of consumption by individual customer groups;
the influence of various factors during the email lists uk purchasing decision-making process.
Clients
Source: shutterstock.com
Segmentation is easier if you have an idea of your market type:
Mass market - here there is no need for customer segmentation. All consumers have similar characteristics, and the marketing strategy is uniform everywhere. This could include a company producing clothing for the mass consumer (e.g. Zara) or household chemicals (e.g. P&G).
Niche market - when a business is limited to a single segment, the company works with a specific group of consumers. An example is the company "New Cloud Technologies", which is best known as the developer of the "My Office" system, designed exclusively for government agencies.
A fractional niche market involves interaction with several categories of specific clients. Such activities are carried out by the Kalashnikov Group of Companies (it sells products to individuals and the military-industrial complex) or Uber (clients are divided into premium, business and economy classes).
Multi-profile market - sales are conducted in several different market segments, covering a diverse audience. Among the largest participants in this market are Yandex and Sber, offering a wide range of goods and services in many areas. Also worth mentioning here is Amazon.
As a result of filling out this block, you should get a characteristic of each consumer segment: gender, age, income, interests, hobbies, region of residence, needs.
Value Proposition
This stage consists of finding answers to two questions:
What do you offer to the client? The most important characteristics of all your products (price, corporate style, etc.) should be indicated here.
How does purchasing your product help the customer solve his problems? What advantages can you give the customer? It is common to highlight qualitative advantages (popular brand, external attractiveness) and quantitative ones (price, service life, power).
If the company has not yet been formed or the product is not yet released, then Osterwalder's value model allows you to quickly understand what significance your project has in the future: what qualities will the company or product need to increase market demand and obtain undeniable competitive advantages, and how this can be achieved.
Key activities
The efficiency of the model as a whole depends on the content of this block. You should choose the direction of your business:
Production.
Provision of services.
Development of IT services and platforms, etc.
Key Resources
How can your brand and products be unique to the consumer? Determine whether you have enough time and money, whether you need more staff, and business contacts may also be helpful.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Customer Relationships
When forming this block, you need to pay attention to the following points:
What format of interaction with the client will meet his expectations? For example, the consumer plans to seek advice from your representatives in person or online, or he makes a purchase decision independently, through logical judgments. Finally, the client may view your business as based on automated systems and using artificial intelligence mechanisms that can better understand the user's problems.
Does this format take into account the specifics of doing business? Let's say if it is important for the buyer to communicate live, and your service is completely automated and occurs without the participation of managers, then you will have to make certain adjustments.
What are the costs associated with implementing a suitable interaction format? If the client is attracted by the idea of seeing a product presentation in virtual reality, your company may not be ready for such an investment. You should consider other options, such as 3D animation on the site.
Will the scope of the selected interaction format expand?
Distribution channels
At this stage, you should determine how your products will be sold. In doing so, rely on competitors' models, your own capabilities, and find out how it will be more convenient for customers to purchase your product:
directly or through intermediaries,
online or offline,
wholesale or retail, etc.
Key partners
You need to not only describe your partners and areas of joint work, but also draw a conclusion about what benefits they can derive from cooperation with you. There are several options: cost reduction, sales expansion, etc. Additional arguments in favor of cooperation contribute to strengthening your relationship.
Costs
In this block, you need to list all costs (variable and fixed) that may arise during your business, including rent, website development, staff salaries, and tax payments.
It is also recommended to answer two questions:
Which group of expenses is the most significant?
Which resources require the greatest investment, and are they those that are critical to the project?
The key is to identify the cost categories that are of primary importance and find ways to optimize them. If you cannot limit these costs, reduce expenses in other, less important items.