Business Model

The business model (or model of business) describes how a company creates, delivers, and captures value. In other words, it explains how a business generates revenue, manages costs, and maintains its sustainability over time by linking strategy, market, and offering.

Purpose / Why it’s important

It defines the economic and operational structure of a business, clarifying where profits come from, who the offer is aimed at, and which resources or partners are needed. A solid business model allows for growth planning, process optimisation, and differentiation from competitors.

When it’s used / In which context it’s useful

It is an essential tool during the startup phase, in rebranding, or when launching a new line of products or services. It is also useful for analysing competitors or adapting one’s strategy to evolving markets (digital, sustainability, subscription economy, etc.).

Practical example

Netflix bases its business model on a monthly subscription that guarantees unlimited access to content. The value for the user is convenience; for the company, it’s the stability of recurring revenues.
A creative agency, on the other hand, may adopt a monthly fee or custom project model depending on the type of client.