Business Model Development in MBA Capstone Projects

by Posted on

Developing a business model is a crucial part of any MBA Capstone project. A strong business model outlines how a company delivers value to its customers and achieves profitability. In your Capstone project, you will either create a new business model for a business or evaluate an existing one to suggest improvements.

1.1 Key Components of a Business Model

A well-rounded business model includes several key components:

  • Value Proposition: This is the unique value your business provides to customers, solving a specific problem or fulfilling a need.
  • Customer Segments: Defines the specific groups of customers your business aims to serve. This could be based on demographics, behavior, or needs.
  • Revenue Streams: Identifies the ways the business will generate income, such as product sales, subscription models, or licensing fees.
  • Cost Structure: Outlines the costs involved in running the business, including operational costs, marketing, and employee salaries.
  • Key Resources and Activities: The main assets (physical, intellectual, human, or financial) and activities necessary to create, deliver, and capture value.
  • Channels: Describes how the company will reach its customers, whether through online platforms, physical retail, or direct sales teams.
  • Customer Relationships: Details the kind of relationship your business will have with customers, whether it’s self-service, personalized, or automated.

1.2 Developing the Business Model

To develop a comprehensive business model for your Capstone project, use frameworks like the Business Model Canvas. This visual tool helps organize each component in a structured way, allowing you to identify gaps, refine your value proposition, and assess scalability. Consider the following steps:

  • Conduct market research to understand your target audience’s needs and pain points.
  • Test your assumptions about customer demand, revenue generation, and cost structure.
  • Prototype your business model by launching small-scale experiments or pilot programs to validate your ideas.

Published by Lisa