A business
model is firms plan or diagram for how it competes, its resources, structures
its relationships, creates value to sustain itself on the basis of the profits.
The importance are-
·Serves as an ongoing extension of feasibility
analysis
·Focuses attention on how all the elements of a
business fit together and how they constitute a working whole
·Describes why the network of participants
needed to make a business idea viable is willing to work together
·Articulates a company’s core logic to all
stakeholders, including the firm’s employees
