The 5 Pillars of a Successful Business Model

For a business model to be successful, it must account for five key components.

The first is your company’s Value Proposition to attract and retain customers. This involves the value the customer perceives from your product and service offerings.

Next is how you actually create valueThis is done leveraging your organizational core competencies, Intellectual Property, and specialized processes.

The third component is how you deliver on the value proposition. This is done by attracting and deploying the right people so they can deliver on your value proposition.

Next is how you capture value. This is how you make money utilizing your business model, how you price or leverage cost synergies.

Last but not least is how you communicate your company’s value proposition through various communication channels and networks to generate the right word of mouth and customers.


The reality is that these 5 components must form the strategic foundation of your business model along with other considerations like your customer segments, distribution channels, core activities, resources, partners or your delivery mechanisms and so on.

So, here is the punchline: whether you’re want to make your competition irrelevant by approaching your market differently or simply want to gain competitive advantage, our strategic planning process helps your company map out a holistic view of the road ahead and make the tough choices, so you can get your company to its next level.

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