In this issue, we will be discussing the "Channels" building block of the business model canvas. Specifically, we will be exploring how can companies excel in their channel strategy.

What you will learn in this issue:

• The importance of the "Channels" building block in the business model canvas

• A real-life example of an SME company that excelled in its channel strategy

• A TLDR summary of the key points discussed in this issue

Estimated read time: 5 minutes.

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The building blocks of the business model canvas

1. Key Partnerships

2. Key Activities

3. Key Resources

4. Revenue Streams

5. Cost Structure

6. Value Proposition

7. Channels

8. Customer Relationships

9. Customer Segments

The "Channels" building block of the business model canvas refers to the ways in which a company communicates with and reaches its target customers. This can include physical channels, such as retail stores and distributors, as well as digital channels, such as websites and social media.

An effective channel strategy is crucial for any business, as it determines how the company's products and services are delivered to its customers. A company that excels in its channel strategy can gain a competitive advantage by reaching its customers in the most efficient and effective ways possible.

For example, XYZ Food Company is a small food manufacturer that specializes in organic, locally-sourced ingredients. To reach its target customers, XYZ Food Company uses a combination of physical and digital channels.

For physical channels, XYZ Food Company sells its products at local farmers' markets and through a network of independent retailers. This allows the company to directly connect with its customers and build relationships with them.

For digital channels, XYZ Food Company has an e-commerce website where customers can purchase its products online. The company also has a strong presence on social media, where it regularly posts updates about its products and promotions.

Through its effective channel strategy, XYZ Food Company has been able to reach a wider audience and grow its business.

Apple and Cisco as example

Cisco and Apple are both large, global companies that have used a variety of channels to reach their customers and grow their businesses.

Cisco, a technology company that specializes in networking equipment, has a multi-channel approach to its sales and distribution. This includes a network of resellers and distributors, as well as its own sales teams and e-commerce website. In addition, Cisco has partnerships with other companies, such as service providers and system integrators, to expand its reach and offer its products to a wider audience.

Apple, a consumer electronics company, also uses a multi-channel approach to its sales and distribution. This includes its own retail stores, where customers can experience and purchase its products, as well as its e-commerce website and third-party retailers. Apple also has a strong presence on social media, where it regularly engages with its customers and promotes its products.

Overall, both Cisco and Apple have effectively used a variety of channels to reach their customers and grow their businesses.

TLDR

In this issue, we discussed the "Channels" building block of the business model canvas and how a hypothetical SME company, XYZ Food Company, excelled in its channel strategy. And also two examples from apple and Cisco, An effective channel strategy is crucial for any business, as it determines how the company's products and services are delivered to its customers.

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- Luqman