Scribd Logo
Upload

Welcome to Scribd!

  • Business Model Canvas

    Uploaded by

    JerryJoshuaDiaz
    36 views2 pages
    The document discusses several limitations of using the Business Model Canvas as a tool for developing business models: 1) It is internally focused on what a company delivers and how rather than considering competitive strategy. 2) It emphasizes how to capture and deliver value rather than sources of value creation like experienced people. 3) The tool is designed for profit-generating organizations and excludes non-profits and governments whose goals are not profit. 4) Competition is not included but is an essential influence, and a business model may not be feasible if competitors offer more value. 5) It is unclear how to execute a business model developed with the canvas.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses several limitations of using the Business Model Canvas as a tool for developing business models: 1) It is internally focused on what a company delivers and how rather than considering competitive strategy. 2) It emphasizes how to capture and deliver value rather than sources of value creation like experienced people. 3) The tool is designed for profit-generating organizations and excludes non-profits and governments whose goals are not profit. 4) Competition is not included but is an essential influence, and a business model may not be feasible if competitors offer more value. 5) It is unclear how to execute a business model developed with the canvas.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    36 views2 pages

    Business Model Canvas

    Uploaded by

    JerryJoshuaDiaz
    The document discusses several limitations of using the Business Model Canvas as a tool for developing business models: 1) It is internally focused on what a company delivers and how rather than considering competitive strategy. 2) It emphasizes how to capture and deliver value rather than sources of value creation like experienced people. 3) The tool is designed for profit-generating organizations and excludes non-profits and governments whose goals are not profit. 4) Competition is not included but is an essential influence, and a business model may not be feasible if competitors offer more value. 5) It is unclear how to execute a business model developed with the canvas.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    EVERY SUCCESSFUL COMPANY ALREADY operates according to an effective business

    model. By systematically identifying all of its constituent parts,


    executives can understand how the model fulfills a potent value proposition
    in a profitable way using certain key resources and key processes. With that
    understanding, they can then judge how well the same model could be used
    to fulfill a radically different CVP—and what they’d need to do to construct a
    new one, if need be, to capitalize on that opportunity

    EVERY SUCCESSFUL COMPANY ALREADY operates according to an effective business


    model. The first thing I would do is identify all the constituent parts of my Company’s
    business model
    With that understanding, I can then then effectively assess how well the same model
    could be used to fulfill a radically different CVP—and what our oganization needs to do
    to construct a new one, if need be, to capitalize on that opportunity

    A limitation based on theoretical investigation is about the absence of strategy in terms of competition.
    The Business Model Canvas is an internally focused tool which is focusing on what a company delivers,
    how it will be delivered and what is necessary to make what the company is delivering. Competitive
    strategy is missing in these mechanisms of the business model tool. Based on theory the strategy and
    business models are highly related to each other (Brandenburger & Stuart, 1996), because the way of
    adapting to competition may lead to superior performance or under performance (Magretta, 2002).

    y. In the Business Model Canvas emphasis is on the Value Proposition and ways how to capture and
    deliver value and less on the sources of value creation, such as experienced people and a high profile
    team

    The Business Model Canvas is formed around profit generation. This excludes non-profit and
    governmental organizations. In other terms, the goal of the Business Model Canvas is fixed, it is about
    the exchange of value for revenue. Organizations which aim at other values such as Social Value cannot
    be designed with the Business Model Canvas. The limitation is therefore the exclusion of other purposes
    of a business model then the purpose of profit generation.

    Exclusion of competition is another important limitation which is corresponds with the former sub-
    research question. According to online discussions, competition should be included because it is an
    essential part of the daily influences of a company. When not taking into account competition, a
    business model might not work. Because, for example the competition has a better value proposition
    than the new business model of the company under design. The business model might not be feasible.
    Furthermore, a limitation is directed at the execution of a business model designed with the Business
    Model Canvas. It is not clear how to start the business. This can be remedied, according to the online
    discussion, by making a story around the business model to explain relations and interaction between
    the individual building blocks. Last limitation is the difference in detail of the individual building blocks.
    The resource, activity, channel and customer relationship blocks induce to higher detail then other
    building blocks

    You might also like