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Business Model Design

A “business model” is a company’s core strategy to create value and to turn a profit. Business models can include direct sales, franchise, advertising, partnership, or brick-and-mortar. Hybrid models combine two or more of these.

Designing a business model is the first step when creating an organizational model and needs to answer questions such as:

  • How do we create value?

  • Who are our customers?

  • What are our differentiators?

  • What are our products and services?

  • How should we price them?

  • How do we go to market?

Once a company has defined a business model, the next step is to design an operating model. 

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