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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 helps communicate how a business operates by identifying nine key building blocks and their interrelations. The first block is customer segments, which represents the distinct client groups the organization serves, each with unique needs requiring different channels and relationships. It's crucial to identify who the ideal customers are and what type of relationship each segment desires, which may involve excluding certain customer groups to optimize resource use. The value proposition highlights how the organization creates value for customers, distinguishing its products or services from competitors.
