Business Model Canvas

The purpose of a business model canvas is to assess how the firm’s economic activity is configured to create and deliver on a firm’s value proposition. The business model canvas provides a holistic perspective of how the major elements of a business need to be aligned to allow the firm to create and capture value. Managers can use a business model canvas when initiating a new business, or when seeking to revise the strategy of an existing business by assessing how the current configuration of activities may need to change to deliver on the new strategy. This chapter discusses the underlying theory, core idea, depiction, process, insight or value created, and risks and limitations of the business model canvas. The chapter also continues the illustration of Spotify and applies the steps of business model canvas to this case.