Business Model-Value Matrix

The Business Model-Value Matrix is a 2x2 matrix that helps businesses identify and prioritize opportunities for growth. It is based on the idea that businesses should focus on activities that create value for customers and generate revenue.

At a very high level, the Business Model-Value Matrix is used in the context of business, marketing, finance.

Business Model-Value Matrix quadrant descriptions, including examples
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What is the Business Model-Value Matrix?

A visual explanation is shown in the image above. The Business Model-Value Matrix can be described as a matrix with the following quadrants:

  1. Create Value: Activities that create value for customers but don't generate revenue (e.g. offering free customer support)
  2. Create & Generate: Activities that create value for customers and generate revenue (e.g. offering premium products and services)
  3. Generate Revenue: Activities that don't create value for customers but generate revenue (e.g. increasing prices)
  4. No Value & No Revenue: Activities that don't create value for customers and don't generate revenue (e.g. spending money on unnecessary overhead)

What is the purpose of the Business Model-Value Matrix?

The Business Model-Value Matrix is a 2x2 matrix that helps businesses identify and prioritize opportunities for growth. It is based on the idea that businesses should focus on activities that create value for customers and generate revenue. The matrix divides activities into four quadrants:

  • The top-left quadrant is for activities that create value for customers but don't generate revenue.
  • The top-right quadrant is for activities that create value for customers and generate revenue.
  • The bottom-left quadrant is for activities that don't create value for customers but generate revenue.
  • The bottom-right quadrant is for activities that don't create value for customers and don't generate revenue.

The matrix can be used to identify opportunities for growth, as well as areas where the business should focus its resources. For example, a business may identify an opportunity to create value for customers by offering a new product or service, or by improving an existing one. Alternatively, the business may identify an opportunity to generate revenue by increasing the price of an existing product or service.

The Business Model-Value Matrix is a useful tool for businesses that want to identify and prioritize opportunities for growth. It can help businesses focus their resources on activities that create value for customers and generate revenue.


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What templates are related to Business Model-Value Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Business Model-Value Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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