A business model, according to Gambardella and McGahan (2010), is a way to understand organizations as systems that have common components of capturing value, delivering value as well as creating the value. In the context of a system that is activity based, the business model helps stakeholders mainly managers to understand businesses and organizations in the following prisms commonly known as the basic building blocks of business model.
i. The value or that the business and the organization creates.
ii. Who it serves.
iii. The factors that set it apart from the rest of the businesses with regards to uniqueness to give it a competitive mileage.