1.

Importance of Value Proposition in BMC:

Business Model Canvas is basically a template of strategic management that us used by

businesses for developing new business models and documenting the exiting ones. The BMC

mainly offers a visual chart with several elements describing the value of firm’s product, its

infrastructure, customer and finances and further assist businesses to align their functions by

illustrating trade-offs. Value Proposition in an instrumental part of their model and is anchor

around which the businesses used to build their BCM. Value proposition in the model carries

immense importance as through this, the model allows systematic understanding of what

customers exactly wants and helps them to create services and products that exactly match their

needs (Denis, 2021). Through value proposition, BMC makes a case or why consumer should

buy one product over other by citing unique value of the product. Value proposition provides a

unique and impressive combination of services and products that provides higher value to

customer by resulting in solution of issues which the customers are facing. This is mainly a point

of intersection between the products and the reasons behind the impulse of customers to buy. I

believe that value proposition is the key factor of BCM as it provides a motive or a reason to

customer to buy a particular product. Value proposition helps businesses to analyze the segments

of customers with their needs and pains and their preferences. I believe that it is all about

responding and understanding the desires of target customers. An effective value proposition is a

promising way to move business model towards another level of growth (Luenendonk, 2020).

2. BMC and Lean Start-Up Method:

As it has been explained above, BMC is a visual template which helps firms to document their

model of exiting business activities or to develop a new one. This model was established by

Alexander Osterwalder in 2005 on the basis of his academic work. This model was designed
with start-ups in mind as it become an alternative for traditional businesses which were not align

much to accommodate with new emerged organizations. On the other side, Lean Start-up is a

variation in the BMC which was introduced by Ash Maurya who was highly concerned with the

assumptions of risks that are enabled by BMC. According to my opinion, Lean Start-up method

is an adaption and a variation in the BMC to further add spirit for start-up business for the

purpose of having concise, fast and effective start-up. Lean Start-up provides a promising action

and a plan on which entrepreneur can focus. As BMC helps organizations to describe the value

of their products and services to customers, Lean helps start-up businesses to describe their

products, identify the issues and key metrics that ultimately helps them to gain competitive

advantage. On one side, BMC provides a language for communication, lean model enables firms

to quickly validate their business ideas. I believe that structure of both the concepts are quite

similar in nature as they both help organization to take a new start, identify their abilities,

examine the issues and generate loyal customers for their products and services by meeting their

preferences and demands (Abdoun, 2018).

3. BMC makes Businesses Agile:

I think old business model were almost inaccurate as they lack various significant details which

led delayed in making decisions by businesses. But with the emergence of BMC, businesses

around the world become more agile as the model provides them a power to make strategic

decision quickly without any hesitation. The businesses become agile as BMC provides them a

detailed estimation of cost, projection of revenues and a long tern plan for growth. It is because

business can put canvas together so quickly which provide more accurate reflection of strategic

thinking and the current reality of company and if a company requires to make some

amendments in plan, it is easier for them to make adjustments. However, besides the successful
agile businesses, BMC is allowing businesses to make such products that are best fit for market.

As the model provide brief description and analysis of customer’s demands, needs and

preferences which helps organizations to meet their needs and place such products in market that

are best suitable for them. It is a fact that many entrepreneurs get failed at start-up due to their

market fir products as they fail to realize the importance of product itself. By having BMC,

businesses become able to think about the customer’s needs, envision of selling product, kinds of

sources required according to different segments of customers etc. By documenting all such

information, provides clarity to businesses regarding the value of their product and how it can

best meet the needs of market. This led them to develop correct product in market that is desired

by customer which ultimately provide sthem competitive advantage (Young, 2020).

References:
Abdoun, A. (2018). Business Model Canvas, the Lean Canvas . International Journal of Scientific &
Engineering Research , Volume 9, Issue 1, .

Denis. (2021). The Value Proposition in the Business Model Canvas: What Problem are We Solving?
Retrieved from https://www.denis-oakley.com/business-model-canvas-course/value-
proposition/

Luenendonk, M. (2020). Business model canvas: Creating a Value Proposition. Retrieved from
https://www.cleverism.com/business-model-canvas-creating-value-proposition/

Young, S. (2020). Benefits of using a business model canvas instead of a business plan. Retrieved from
https://chimera-swa.medium.com/5-key-benefits-of-using-a-business-model-canvas-instead-of-
a-business-plan-55d5d727ba46#:~:text=The%20business%20model%20canvas%20helps%20you
%20with%20the,positioning%20statement%20as%20well%20as%20your%20Sales%20strategy.