Business model can also be held responsible for defining distinctive competencies of the company that will ensure that the company is positioned at highly appropriate and differentiated place in the market. This model also specifies customer groups through market segmentation to directly focus over those market sectors that will provide maximum return to the associated product. to introduce new product to make sure that company is able to capture optimum market share. Business model directly focuses over customer needs as it is this particular aspect along with product differentiation strategy, i.e. Thus there is a need to define business model of any organization at first in an explicit manner to avoid all the discrepancies at first end.

Entire functioning of the business is based over this business model as it provides guideline to the organization to carry out all its activities. It represents core aspects of the business which include strategies, organizational structure, purpose, operational processes, policies, infrastructure, and business practices. Business model describes entire procedure of creation, delivery, and capturing of organizational values in both economic and social aspects.

Business models