Canvas - Definition & Meaning
What is Canvas?
The business model canvas is a tool which is used by firms at the time of a new business launch or redefining the existing business. It enables the managers to put all the interconnected facets of the business model on a single sheet of paper. By doing so one can then easily visualize, understand and make the required changes.
This also helps one figure out any loopholes or risk associated. By doing so one can easily design their positioning strategy and concentrate the resources in the areas with greatest opportunity.
There are 3 parts of the canvas.
The middle portion takes into account the value proposition and includes the most fundamental parts of the business model like the customer segment, cost model, revenue model, alternatives, and value.
After the consistent alignment of the middle part the demand side of the canvas is taken into account. It includes parameters like customer relationship, channel, market size and growth.
The third part talks of the supply side in terms of the key activities, key partners and the key resources.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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