The purpose of company is to achieve its value generation goals, while competing in a market to satisfy its customers better than the competition.

We define a Business Model as the process by which a company creates profits and value in exploiting the potential of a market  to the satisfaction of its customers.S

The end result of the business analysis conducted with ACTEAM’s methodology is a condensed presentation of the company’s business model that emphasizes the key ingredients that are essential to its success.

From then on the company can use the representation of its business model to:

1. Better communicate with its partners as the business model will help present its value proposition to the customers or explain to partners how together take advantage of the market potential
2. Compare its results to the competition’s in analyzing for example where competitors have built some advantages for themselves in their relationship with the customer, and most importantly
3. Maximize value generation in monitoring tactical and strategic indicators and constantly look for improvement

Developing or analyzing business models helps a company isolate where and how in its value chain it creates profit and value. With such understanding, a company can better discern how to exploit the potential of its markets, increase customer satisfaction, and raise barriers to entry from competitors. Using such an approach, a company has the tools to relentlessly improve upon its business practices to build sustainable long-term competitive advantage.