Key Ingredients For Business Model

1. Value proposition
2. Market strategy
3. Organizational development

Business model is a set of planned activities designed to result in rofit in a marketplace. There is few key ingredients for business model. First is a VALUE PROPOSITION. It defines on how company's fulfil needs for customers. The question will often to ask is "why should cutomer buy from you?". So, the example of succesful value proposition is personalization, reduction of product search cost, reduction of price discover cost and facilitation of transaction by managing product delivery. Second is MARKET STRATEGY which is a plan that details on how the company plan to enter a new market and attract customers. But, best business concept will fail if not properly marketed to the potential customers. Third is organizational development. Organizational describe how the company will organize the work that needs to be accomplished. Work typically divided into functional department.