What is a business model?

The topic of business models has become important in today A business model is a conceptual tool that contains a big set of elements and their relationships and allows expressing the business logic of a specific firm. It is a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams
A model describes the original in a way that its essence without having to deal with all its characteristics and complexities.There are mainly9 building blocks to describe a business model:

1. The value proposition of what is offered to the market;
2.The target customer segments addressed by the value proposition;
3.The communication and distribution channels to reach customers and offer the value proposition;
4.The relationships established with customers;
5.The core capacities needed to make the business model possible;
6.The configuration of activities to implement the business model;
7.The partners and their motivations of coming together to make a business model happen;
8.The revenue streams generated by the business model constituting the revenue model;
9.The cost structure resulting of the business model.


All above model can applied to any type of business. In case the online auction business model

" eBay", the world's largest online auction site, is one of the better known examples. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses that use the site to auction off goods and services.