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1. What is a business model? What are the six elements of business model?
Business model is one of the important research objects of management. There are various trading relationships and connection methods between enterprises, between departments of enterprises, and even between customers and channels. This is the business model.

Six elements of business model:

First, strategic positioning

Strategic positioning is the result of enterprise strategic choice, and it is also the starting point of other parts of the business model system. Strategic positioning needs to consider three aspects, namely: long-term development, profit growth and unique value. The "positioning" in the business model is more as the support point of the whole business model. The same positioning can have different business models, and the same business model can also achieve different positioning.

Second, the business system

Business system refers to the business links needed by enterprises to achieve strategic positioning, the roles played by partners and the cooperation methods of stakeholders. The business system established by enterprises around strategic positioning will form a value network, and the roles of customers, suppliers/other partners in the process of obtaining value through business models will be clarified.

Third, key resource capacity.

Key resource capability refers to the important resources and capabilities required for the operation of business systems. One of the key tasks of any business model construction is to understand what important resources and capabilities are needed by business systems, how to allocate them, and how to acquire and establish them. Not all resources and capabilities are equally precious, and not every resource and capability is needed by an enterprise. Only those resources and capabilities that are compatible with strategic positioning, business system, profit model and cash flow structure and can complement each other are what an enterprise really needs.

Fourth, the profit model

Profit model refers to the way for enterprises to obtain income, allocate costs and earn profits. The profit model is a way to distribute benefits among interested parties under the premise of giving the value chain ownership and value chain structure of the business system. A good profit model can not only bring benefits to enterprises, but also weave a stable and win-win value network for enterprises.

Verb (abbreviation of verb) cash flow structure

The cash flow structure refers to the cash income generated during the operation of an enterprise after deducting cash investment. Different cash flow structures reflect the differences in strategic positioning, business system, key resource capacity and profit model of enterprises, and determine the level of investment value, the growth rate of investment value and the degree of being favored by the capital market.

Intransitive verb enterprise value

Enterprise value refers to the investment value of the enterprise, which is the discounted value of the cash flow that the enterprise expects to generate in the future. The investment value of an enterprise is determined by its growth space, growth ability, growth efficiency and growth speed.