The document discusses the original idea for UrShoe.com which was simply to sell customized shoes online with no business model or value proposition outlined. It then explains how the Business Model Canvas template can be used to develop a business model by describing the key elements of value proposition, infrastructure, customers, and finances. Finally, it provides an example business model for UrShoe.com that outlines its offer, customer segments, distribution channels, key resources, activities, and revenue streams.
2. Original Idea
The original idea was actually nothing.
It only stated the idea of selling customized shoes online.
There was no mention of how to create extra value to the business.
Most probably the entrepreneur thought that it is not a feasible idea at all.
3. Business Model Canvas
The Business Model Canvas is a strategic management template for
developing new or documenting existing business models.
It is a visual chart with elements describing a firm's
Value proposition
Infrastructure
Customers
Finances
It assists firms in aligning their activities by illustrating potential trade-offs.
4. Business Model By Alex
Osterwalder
PARTNER CUSTOMER
INFRASTRUCTURE CUSTOMER
NETWORK RELATIONSHIP
KEY RESOURCES
Portrays the OFFER Explains the TARGET
network of relationships a CUSTOMER
cooperative company
Outlines the agreements with
VALUE establishes with
PROPOSITION Describes the
capabilities other companies its customers
customers a
required to run a
Gives an overall company wants to
company's
VALUE view of a DISTRIBUTION offer value to
business model
CONFIGURATION company's bundle CHANNEL
of products &
Describes the
Describes the services
channels to
arrangement of communicate and
activities and get in touch with
resources customers
Sums up the
Describes the
monetary
COST REVENUE revenue streams
consequences to
STRUCTURE
FINANCE STREAMS through which
run a business
money is earned
model
8. CUSTOMER
Orders Web Portal
Or
de
rs
Customers UrShoe.com
Courier (5-7 Days)
er
d Ord
m ize
Cu sto s
Inventory G ood
ed
Suppliers ish
Assembling Unit Fin
9. CUSTOMER
• Builds strong trust and guarantee good quality
• Provide unique customer experience which will help in buying
decision of other customers
• Create virtual relationship with customers by building easy,
secured, reliable, cost effective, efficient platform
• Lower buyer search cost
• Through advertisements keep them well informed