Business Model

FinancialTimesLexicon

This describes the method or means by which a company tries to capture value from its business. A business model may be based on many different aspects of a company, such as how it makes, distributes, prices or advertises its products. [1] The business model concentrates on value creation. It describes a company’s or organisation’s core strategy to generate economic value, normally in the form of revenue. [2] The model provides the basic template for a business to compete in the market place, it provides a template on how the firm is going to make money, and how the firm will work with internal players (firm’s employees and managers) and external players (stakeholders such as customers, suppliers, and investors)

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