Canvas Model: what it is, blocks and examples explained in detail

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If you're thinking about starting a business, launching a startup, or even reviewing how your current company operates, sooner or later you'll come across a fundamental tool: the Business Model Canvas. It's not just a pretty template for meetings, but a proven system that allows you to visualize and structure all the key elements of a business on a single canvas.

Since its development by Alexander Osterwalder, the Business Model Canvas has become an essential tool for both startups and established companies looking to revamp their businesses. And the best part is that its application is limitless: it can be used to understand, communicate, optimize, and reinvent businesses of all kinds.

What is the Business Model Canvas?

The Canvas Model is a visual tool that allows you to represent in a clear, simple and structured way how a business works or will workIt is composed of nine fundamental blocks that, interconnected, offer a comprehensive view of the business model. These blocks are the components that define the 'skeleton' of any company, from how it generates revenue to how it interacts with its customers.

Its great virtue is that you don't need an MBA to understand or apply it. It is designed to be collaborative, easy to use and, above all, very visualallowing teams from different areas to work together to define and align their strategy.

Origin of the Canvas Model

The model was created by Alexander Osterwalder, a Swiss academic who developed this methodology as part of his doctoral thesis in 2004 at the University of Lausanne. Osterwalder, along with computer scientist Yves Pigneur, published the book 'Business Model Generation' in 2009, which became a worldwide bestseller and popularized this tool.

Their approach stems from methodologies such as Design Thinking and focuses on co-creation, prototyping, and strategic innovation. Since then, millions of entrepreneurs, large corporations, and even non-profit organizations They have used the Canvas to validate ideas and transform business strategies.

The 9 blocks of the Canvas Model

The canvas is structured in nine blocks or modules that are interconnected. Analyzing them all provides a complete overview of the business, helps identify opportunities and problems, and allows for more informed decision-making.

1. Customer segments

This section defines who you are offering your product or service to.A company can have one segment or several, and it is vital to know them thoroughly: their needs, habits, preferences, age, purchasing power, etc.

Types of market segments:

• Mass Market: aimed at a broad audience with no significant differences between customers.
• Market niche: It focuses on clients with very specific needs who require personalized attention.
• Segmented: groups clients by common needs or characteristics.
• Diversified: It covers very different segments with different offerings.
• Multilateral: platforms that connect two or more groups (such as Airbnb or Uber).

Key questions:

• Who is your ideal client?
• What specific need do you have?
• Can you identify different segments within your customer portfolio?

2. Value proposition

Herein lies the heart of your business: what you offer your customers and what problem you solve.It's not just the product or service, but the value they represent for each customer segment.

Common elements that enhance the value proposition:

• Novelty: to meet a need that did not exist before.
• Personalization: adapt the offer to individual preferences.
• Price: offer a more economical or more premium option.
• Design, quality, accessibility or sustainability: differentiating attributes.

A coffee shop that exclusively offers organic products can have as its value proposition health, sustainability and personalized service, for example.

3. Channels

These are the means by which your value proposition reaches customersWe're not just talking about sales channels; promotion, delivery, and after-sales channels are also included.

Channel phases:

• Information: how customers discover your brand.
• Evaluation: how they compare and review similar products.
• Purchase: how they access the product or service.
• Delivery fee: how they receive the product.
• After-sales: how they are provided with support or follow-up.

Real example: A coffee shop can combine its physical channel (store) with delivery and online orders through apps like Glovo or Uber Eats.

4. Customer relations

This module defines how you interact with your market segmentsRelationships can range from direct interactions to automated services.

Types of relationships:

• Personal assistance: direct contact with the client.
• Self-service: without human intervention, such as automated kiosks.
• Automated services: apps or chatbots with programmed responses.
• Communities: spaces where customers interact with each other and with the brand.
• Co-creation: customer participation in product development.

5. Sources of income

Describe how and in what way a company earns revenue.Consider the type of pricing, the monetization methods, and how much the customer is willing to pay.

Typical revenue generation models:

• Direct sale: revenue per product sold.
• Monthly subscription: like Netflix or Spotify.
• Freemium: Free basic services and advanced paid features.
• Licenses: software like Adobe or Microsoft.
• Advertising: ad-based revenue model

6. Key Activities

These are the essential actions for your business model to workThese can include everything from production, logistics management, customer service, to digital marketing.

Classification of key activities:

• Production design, manufacture and distribute products.
• Problem resolution: consulting, technical support or legal advice.
• Platform/network: software maintenance or digital ecosystems.

7. Key Resources

These are the essential assets for your company to functionThey are directly related to the value proposition, channels, customer relationships, and revenue streams.

Resource categories:

• Physicists: offices, machinery, fleets, infrastructure.
• Humans: key personnel, from developers to sales staff.
• Intellectuals: patents, branding, know-how, databases.
• Financial: funds, lines of credit, recurring income.

8. Key Partners

These are the strategic alliances necessary to make the business model viable.Include suppliers, franchises, technology partners, etc.

Types of associations:

• Strategic Alliances: between complementary companies.
• Joint Ventures: for new developments.
• Customer-supplier relationships: with exclusive conditions.
• Coopetition: collaboration between competitors.

9. Cost structure

It reflects all the expenses necessary to operate your businessIt includes fixed costs, variable costs, investments, technological upgrades, etc.

Types of costs:

• Fixed: rentals, payroll, licenses.
• variables: supplies, commissions, transport.
• Scale economics: reduce costs at higher volumes.
• Value-based costs: premium, customer-centric approach.

Digital tools to create your Canvas Model

Today, there are digital platforms that facilitate the visual and collaborative creation of Canvas models. Some of the best-known include:

• Strategyzer: The official one, created by Osterwalder. Very comprehensive.
• Canvanizer: a free and very intuitive tool.
• Miro / MURAL: online collaborative whiteboards perfect for teamwork.

Examples of applying the Canvas Model

Companies such as Netflix, Starbucks, Spotify, Mercado Libre or Nubank have used the Canvas model to clearly define their business strategy.

For example, in the case of Starbucks, its value proposition is not just coffee, but the in-store experience, sustainability, personalization, and status. Its channels range from physical coffee shops to mobile apps with loyalty programs. This is complemented by key partners such as sustainable producers and a cost structure focused on the customer experience.

The Canvas Model becomes a mirror of the business visual, flexible, easy to share, modify and use as a continuous work tool.