Business Models

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Create a Business Model Plan

A business model plan combines the components of a business plan with business model analysis. This document augments or substitutes for the traditional business plan and has the following basic layout [more…]

Competitive Advantage Is Part of Your Business Model

Competitive advantage enables a firm to perform at a higher level than others in the same industry or market — or with anyone competing for the customer’s limited budget. Competitive advantage can serve [more…]

Enhance Your Competitive Advantage by Improving Your Business Model

To fully leverage a strong competitive advantage, you must shore up the other aspects of your business model as well. As a savvy businessperson, you must go further than competitive advantage analysis [more…]

Common Aspects of All Business Models

A business model is like a lump of clay that you can mold into many different shapes and sizes. This pliability is a powerful feature, enabling entrepreneurs to craft their models to fit their business [more…]

Examples of Business Models

There are business models hundreds of years old and those only a handful of years old, such as Internet freemium models. Some of the most profitable companies didn’t invent new business models; they borrowed [more…]

Hard Work Is Not as Important as a Strong Business Model

You’ve likely met a hard-working, well-educated, and talented business owner who never seems to find success. You’ve also probably met a not-so-hard-working, not-so-well-educated, and moderately talented [more…]

Traditional Business Model Design Methods

The concept of a business model may be new, but the underlying business dynamics aren’t. The East India Trading Company and Henry Ford had good business models, whether they were called business models [more…]

Discover Problems with Traditional Business Models

Creating a business model can be simple. You simply come up with a great idea to create a product and sell it easily and profitably. Problem solved, right? If you’re lucky enough to create a great product [more…]

Design a Business Model by Using a Structured Process

Until recently, no formal business model design tools existed. Entrepreneurs had no choice but to use their experience and wits to create business models. Sometimes this unstructured approach worked, and [more…]

How to Generate Enough Total Margin Dollars

Generally, companies with better business models have superior margin versus their competition. This table shows the profit per vehicle for several automakers in 2010. Which business model do you think [more…]

How to Gauge the Target Business Market

To create the best business model, you should find a profitable and sufficiently large market segment. However, in order to have a successful and durable business model, you need to find a large market [more…]

How to Determine Industry Attractiveness

The most important step toward creating a great business model is creating a product that customers want and will buy. This is called a powerful offering. [more…]

How to Determine Niche Attractiveness

After you pick an attractive industry for your business model, it’s time to find an attractive niche. Your niche market is a subset of the overall market you participate in. Discovery Networks International [more…]

Find Unserved or Underserved Markets

The best way to create a good niche is to find an unserved or underserved market. All blockbuster products do this. To paraphrase Strategyn founder Tony Ulwick, “We don’t buy products for their features [more…]

Check Out Customer Attractiveness

Most business models have customers that are neither exceptionally attractive nor exceptionally unattractive. Most business models don’t need to focus on customer attractiveness for long because the old [more…]

Find Your Place on the Industry Value Chain

To create the best business model possible, find the best place on the industry value chain. Every firm involved in getting a product from initial creation to purchase and consumption by the end consumer [more…]

Build a Unique Value Proposition

You don’t need a unique offering in order to have a business model. If, however, you want to have the most successful model possible, you want to offer customers something they can’t get somewhere else [more…]

Compare a Unique Selling Proposition to a Unique Value Proposition

The goal of any great business model is to have a high-profit product that customers want to buy. A highly marketable product is traditionally described as having a unique selling proposition. Whole Foods [more…]

Define a Unique Value Proposition (UVP)

The unique value proposition (UVP) extends the concept of the unique selling proposition (USP) to include the benefits derived by the customer. Customers ask themselves, “Are the unique features of this [more…]

Maximize Product Potential

After you create a strong USP (unique selling proposition) and UVP (unique value proposition), you can assess the market potential of your product or service. Will you be filling an important unmet need [more…]

Sum Up Your Unique Value Proposition in One Sentence

Can you clearly and effectively explain your unique value proposition (UVP) in one sentence? It’s not always easy, but it’s absolutely necessary. If it takes a paragraph to explain why people should buy [more…]

Create a New USP When Yours Gets Crowded

Pay attention to how many of your competitors have a similar unique selling proposition (USP). When Crest toothpaste first entered the market as the only cavity protection option, the USP was extremely [more…]

Make Your Value Proposition Matter to Customers

Your customers determine what your unique selling proposition is. Other companies may be fighting for a similar USP with the same customer. Many companies are battling for similar USPs in the toothpaste [more…]

Create a Powerful Brand

It’s possible to create a strong selling proposition and value proposition but not create a powerful brand. The Newton by Apple had both a strong USP and UVP but failed to create a good brand for Apple [more…]

Build a Profitable Revenue Model

At the core of a great business model is the ability to generate superior profits. In order to generate the superior profits, you need to create a profitable revenue model. A profitable revenue model has [more…]


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