What is a business model?

A business model describes the basic principle according to which an organization creates, conveys and captures value.

The business model is a simplified representation of the core logic of an enterprise or
network of companies and describes:

  • the value proposition for the customers and the value creation partners of the business model
  • the product/market design of the services with which these value propositions are to be fulfilled
  • the processes, activities and interactions of the value creation partners and the revenue model


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