It is always important for investors to understand the business of the companies that they are about to invest to. In fact, I think most do, but only on a very general level i.e what does a company do? Where are its operations? Most of us would have not a full understanding of the company, and as retail investors, we face an uphill challenge in doing so without management access. And just what is ‘full understanding’? This is where the Business Model Canvas comes in – it serves as a tool to precisely capture the elements of an organization’s business model.
There are 9 main blocks of a Business Model Canvas:
1) Customer Segments
This block defines the different groups of people or organizations a company aims to reach and serve. A business model may define one or several customer segments.
Examples: Mass market, Niche market, Segmented, Diversified
2) ......