Business model is the core part of the strategic plan that suggests how an enterprise is going to make money in its business. The business model usually answers two key questions: how the enterprise is going to earn and how it is going to spend in a particular business or a group of them. Its competitive strategy may answer the question about its earning. Its business strategy may answer the question about its spending. Because an enterprise can be involved in several businesses, it can have several business models.
According to Management by Robbins and Coulter (14th edition),
- Business model. How a company is going to make money.
- Main wikipage: Business Model Canvas