December 5th 2020

A business model canvas is a framework to evaluate the key building blocks that make up a company from a competitive advantage standpoint. A value chain model instead focuses on how value is delivered to potential customers through a set of activities and via the company’s organizational structure. Both tools can be used to assess the competitive edge of a company and how to deliver value.

The business model canvas is a framework proposed by Alexander Osterwalder and Yves Pigneur in Busines Model Generation enabling the design of business models through nine building blocks comprising: key partners, key activities, value propositions, customer relationships, customer segments, critical resources, channels, cost structure, and revenue streams.

In his 1985 book Competitive Advantage, Porter explains that a value chain is a collection of processes that a company performs to create value for its consumers. As a result, he asserts that value chain analysis is directly linked to competitive advantage. Porter’s Value Chain Model is a strategic management tool developed by Harvard Business School professor Michael Porter. The tool analyses a company’s value chain – defined as the combination of processes that the company uses to make money.

Read Next:Business Model Canvas, Value Chain.

Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas.

More Strategy Tools: Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework.

Main Guides:

Business Models
Business Strategy
Marketing Strategy
Business Model Innovation
Platform Business Models
Network Effects In A Nutshell
Digital Business Models

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