Business models

Welcome, everyone. Today we'll explore the crucial concept of the business model, a foundation for any successful organization, whether in retail, technology, hospitality, or beyond. A business model isn't just about making money. It's the logic by which a company creates, delivers, and captures value. This means understanding what product or services offered, who the customers are, how value is delivered, and how value turns into revenue and profit. A strong business model enables organizations to compete, adapt, and succeed. An understanding of business models is key to strategic vision, whether working with startups or established firms. Let's look at the anatomy of a business model. Most frameworks include three key elements, customer sensing, value creation and delivery, and value capture. Customer sensing is about identifying customers and their needs. Value creation and delivery covers the activities and partnerships needed to meet those needs. Essentially, how you provide your product or service. Value capture means monetizing your offering, determining who pays, how much, and when. Different companies illustrate these elements in unique ways, showing that profit and impact depend on how these parts fit together. There are many established business models, subscription, premium, platform, razor and blade, loss leader, and more. The subscription model used by Netflix or Spotify ensures recurring revenue, while platform models like Uber or Airbnb scale rapidly by connecting providers and users. Business models are not static. Innovation and hybridization drive competitive advantage.