It is essential that we evaluate our business model regularly. This business model assessment allows us to find out when something needs to be adjusted, reducing the risks and improving the chances of a bright future.
Contents
Simply because just creating a reasonable business model at the beginning of your venture does not mean that it will work out and keep sustainable forever. A business model assessment should be performed to:
First of all, to understand if a business model is strong enough, it must have its desirability, viability, and feasibility testing. That means:
Alexander Osterwalder and Pigneur’s Business Model Canvas is the most famous tool for business modeling in the world. It is composed of nine building blocks, which can map every aspect of the business. These building blocks are:
After filling out all the nine blocks of the canvas, a SWOT analysis may be used in conjunction with the Business Model Canvas to provide the basis for marketing strategy and decision-making. To analyze the strengths and weaknesses, as well as the opportunities and threats of each building block, you must:
For Morris, Schindehutte, Richardson, and Allen, the business model assessment must include:
Amit and Zott established four significant criteria for analysis:
Hammel also defines four performance indicators to assess the business model. His four criteria are:
You must rank your business model’s performance on a 0 (bad) scale to 10 (excellent) for each question.
Besides assessing your business model design, you must evaluate your business model space, i.e., the whole environment, with its Market Forces, Key Trends, Industry Forces, and Macroeconomic Forces. Only by mapping out markets, trends, customer needs, competitors, and more, will you be able to make your business prepared for innovations, such as new associations, new patterns and processes, and ultimately new business model ideas.
Although we must be realistic when assessing our business model, it is good to keep in mind that no business model will ever score a perfect 10 for every aspect. By asking yourself the questions above and by seeking to improve your business model’s score on at least some of its elements, you are very likely to increase the long-term success of your business.
Check out our Super Guide on this topic by clicking here.
Tesla, Inc. is by far one of the most well-known companies in the world. As…
The Duolingo Business Model revolves around creating an interactive language-learning platform accessible to people worldwide.…
Johnson & Johnson, a pharmaceutical and consumer goods company established over a century ago, prides…
Caterpillar, a renowned global manufacturing company, has dominated the industry for decades. With its extensive…
Instacart, founded in 2012, has quickly become a leading online grocery delivery platform. It offers…
The Quora Business Model revolves around creating a platform where users can ask questions, share…
This website uses cookies.