Understanding 9 basic building blocks of any business

1. 9 crucial building blocks of a business to help
management in defining strategic direction
Key
activities
Value
proposition
Customer
relationship
Customer
segment
Partners
Key
Cost
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resources
structure
Channels
Revenue
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2. Sample questions to understand the business better
and identify problems in delivering value to the
customers
Partners
• Buyer
• Suppliers
• Strategic alliances
•
•
Key activities
• Execution of value
proposition of the
company
with competitors or
non-competitors
Joint ventures
Various service
providers
Value proposition
Customer relationship
Customer segment
• What value do we deliver to
• What type of relationship each
• Who are our customer?
•
•
Key resources
•
•
•
•
Human resources
Financial resources
Physical resources
Intellectual resources
Cost structure
• Fixed cost: Salary, rent
• Variable cost: Raw material cost
• Economies of scale / scope
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•
customer?
What type of products and
services are we offering to
each customer segment?
Which customer needs are
we satisfying?
– Newness
– Performance
– Customization
– Price
– Brand / status
– Convenience
Why customer chooses SHC
compared to competitors?
•
•
segment expect to establish and
maintain?
Which ones are established?
E.g personal assistance,
dedicated pa, self-service,
automated services, etc.
How it is integrated with rest of
the business?
How costly they are?
•
•
•
•
•
Channels
• Which channels customer wants •
us to reach out? Own vs.
•
outsourced channel
• What are customer touch points
– Mass market
– Niche market
– Segmented
– Diversified
What are their needs?
Does need justify distinct
offer?
Profitability differ by
segments?
Are they willing to pay for
different aspect of the offer?
Different channels required?
Different types of relationship
required?
that influence customer exp.?
– Raise awareness
– Evaluate value proposition
– Buy product/service
– Business deliver value
proposition
– Post purchase
Revenue streams support/feedback
• Product / service price
• Subscription / license / usage /
brokerage fee
• Asset sales
• Advertising
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3. @MBA4SME
ESSENTIAL BUSINESS BUILDING BLOCKS
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Prepared by: Abhishek Kumar Gupta
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