Practical application of the method by Alexander Osterwalder

Nastasia Rovinskaya


The term “business-model” is actively used in modern scientific publicity and periodical press. Nowadays increasing number of authors pay attention to this innovative concept due to searching of new strategic management methods for business-owners and top/ middle managers.

Every company is based on proper business-model to follow it up. Moreover it can be clearly stated as well as not recognized at all.

Nevertheless effective and viable business- model can be considered as earnest of success for any business field.

One of the most progressive researchers in this area is Alexander Osterwalder who developed methods to describe and analyze existed business-model or prospective one. To confirm this method Alexander Osterwalder provides some amount of real examples that commonly represent service area. No researches in industrial or constructing field have been held yet. This fact is a bedrock purpose for this paper writing.

Purpose: to analyze method’s adaptability, viability and uniqueness with the help of implementation of Alexander Osterwalder’s business-model into real Ukrainian building company

Methodology: Alexander Osterwalder’s method is based on so-called “Business Model Canvas”. This Canvas consists of 9 structural units/blocks. Each of them is loaded by functional items and is designed for detail visualization, demonstration and following analysis of company’s business-model. The units consolidate predominant activities as cooperation with consumer, propositions, infrastructure and company profit. One part of Canvas is accountable for Value Proposition and Customer Relationships; another part is responsible for final result. Method’s author predicates that any business model can be described and analyzed with the help of Canvas.

Results: method can be used as a visual aid for existent business-model and its general description. At the same time it is not enough for business decision accepting because it does not provide clear answers on business-owners questions/problems.

The theoretical contribution of this paper consists in method testing of single case to make general conclusion.  Researching result analysis permits to develop new theoretical and methodological issues.

Practical implications of this article underlies in actual building company business-model developing. Every block and a whole business-model were analyzed according to Canvas. Practical recommendations for each block were provided too. Finding results can be used out for other company establishing or for some manage decision elaboration to improve or modify current business.

Keywords: business model, Business Model Canvas, methods by A. Osterwalder, building/constructing company.

Paper type: case study.


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