participants in the Stanford LEAD Program

Business Model Analysis and Design

Just as building a house calls for first creating a blueprint, effective commercial innovation requires a blueprint of the business that will be supported or generated by your innovation.

That blueprint is the business model, which comprises three elements: the value creation model, which specifies how the innovation will create and deliver differentiated value to its customers, and who these customers will be; the profit model, which specifies the sources of revenue, the cost structure, and the drivers of profitability; and the logic of the business, which ties together the value creation and profit models and explains how the business will meet its growth and profitability objectives.

Iterating on business model development helps innovators follow a structured process for planning and building new businesses on a standalone basis or within established enterprises.

Course Introduction


In this course, we’ll discuss the process of structuring business models, address the core elements of a business model, and practice the design of innovative business models for new and established companies from multiple industries. We’ll do that by analyzing case studies, studying innovative business models, discussing the topic with entrepreneurs and venture capitalists, and building our own business model.

Key Topics

  • Purpose of a business model
  • Elements of business model design
  • Business model development and adoption
  • Business model archetypes and the associated logic
  • Profit models and unit economics
  • Platform-based business models
  • Sharing-economy models
  • Business model transformation
  • The ways in which new business models are transforming entire industries, such as retail and transportation

Course Faculty

The Kleiner Perkins Caufield & Byers Professor of Electronic Business and Commerce, and Management


Marineh Lalikian
Director, Stanford LEAD Online Business Program Executive Education