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The business model canvas, developed by Alexander Osterwalder, is a visual tool for defining and developing an organization's business model. It highlights nine basic building blocks and their interconnections. The first block, customer segments, identifies key client groups served by the organization, each with distinct needs requiring tailored channels and relationships. Organizations should assess who their ideal customers are and the value each segment requires. This may involve focusing resources on select groups. The value proposition addresses how the organization creates value, distinguishing its products or services in the market.
