BUSINESS MODEL

COMPETITIVE ADVANTAGE :

• A better response to the needs of target customers : justifying a higher sales price or a similar price
• Better cost control : production processes, procurement
• Ability to do volume : (production capacity, salesforce, geographical coverage…) enabling economies of scale
• Good positioning in the industry or sector - Better ability to adapt to regulatory and legal constraints (sustainability, lobbys,…) 

DEFINING YOUR COMPETITVE ADVANTAGE :

• Accurate vision of the industry
• Market segments and competitors must be identified
• Expectations and needs of customers must be identified

Do any competitors respond to this needs ?

How? 

SOCIAL MODEL : ORGANIZATION AND RH :

• Decision-making system
• Internalised or externalised functions
• Competences required (needs)
• Rules and procedures

FINANCIAL MODEL :

• Buy and sell
• Make and sell
• Invest or rent
• Providing a service

They are :

• CAPEX (Capital Expendure) = tangible + intangible assets
• OPEX = (Operation Costs) = fixed costs + variable costs
• Profit and Cashflow

-> investments will be estimated approximately at this stage but more details in Business Plan

THE COMPONENTS OF THE BUSINESS MODEL :

• Generating of Value
• Remunerating of Value
• Participation in value exchange

-> A BM includes nine basic building blocks :

• customer segments
• value proposition
• channels
• customer relationship
• revenue streams
• key ressources
• key activities
• key partners