Most clients I see can clearly articulate their Business Model, but struggle when it comes to describing their Economic Model.
Simply put:
Business Model = customer-focused
Economic Model = owner-focused.
Amazon and Wal-Mart share a similar low-cost, wide-selection retail model. However, their Economic Model is quite different, since one business is a virtual store and the other a physical store.
Within the Economic Model, there are four key elements:
