UPDATED St Gallen Biz Model
University of St. Gallen
Business Model
Navigator
An interactive guide to the Magic Triangle — 4 dimensions that define every successful business model.
↓ Click any circle to explore each dimension
WHO?
Customer
WHAT?
Value Prop
HOW?
Value Chain
WHY?
Revenue
The Magic Triangle
Four dimensions — one coherent model
The St. Gallen Business Model Navigator places WHO (the customer) at the center of everything. Surrounding them is a triangle whose three sides — Value Proposition, Value Chain, and Revenue Model — connect WHAT you offer, HOW you deliver it, and WHY it generates profit.
Research found that 90% of successful business model innovations are recombinations of just 55 existing patterns. You don’t need to invent from scratch — you need to recombine wisely.
Research found that 90% of successful business model innovations are recombinations of just 55 existing patterns. You don’t need to invent from scratch — you need to recombine wisely.
👤WHO — the customer at the center
💡WHAT — your value proposition
⚙️HOW — your value chain
💰WHY — your revenue model
WHO — The Customer
The center of everything
WHO sits at the center of the triangle because the customer is the reason the other three dimensions exist. Every decision about what to offer, how to deliver it, and how to profit from it must revolve around who you are serving and what they need.
You can’t serve everyone equally well. Great business models make deliberate choices about whose problem they solve.
You can’t serve everyone equally well. Great business models make deliberate choices about whose problem they solve.
❓Who experiences the problem we solve?
❓Are there multiple segments (B2B vs B2C)?
❓What do they value most — price, quality, speed?
❓How do we reach and acquire them?
WHAT — Value Proposition
What do we offer and why does it matter?
The value proposition is your offer to the customer — the products, services, or experiences you provide and the benefit they deliver. It’s why a customer chooses you over alternatives.
WHAT connects the customer (WHO, center) to your delivery capability (HOW) along the Value Proposition side of the triangle.
WHAT connects the customer (WHO, center) to your delivery capability (HOW) along the Value Proposition side of the triangle.
❓What problem do we solve?
❓Why choose us over alternatives?
❓Is the value functional, emotional, or social?
❓How does the offer evolve over time?
HOW — The Value Chain
How do we create and deliver the value?
This dimension covers the processes, resources, capabilities, and partnerships needed to produce and deliver your value proposition. It’s the operational engine of your business model.
HOW connects to WHAT along the Value Chain side — the processes that turn your capabilities into customer-facing value.
HOW connects to WHAT along the Value Chain side — the processes that turn your capabilities into customer-facing value.
❓What key activities must we do internally?
❓What resources are critical — people, tech, data?
❓Which partners or suppliers do we rely on?
❓What is our production and distribution method?
WHY — Revenue Model
Why is this financially viable?
This is where the business model must generate profit. It defines how revenues are earned, what the cost structure looks like, and what drives the financial logic of the whole system.
WHY connects HOW and WHO along the Revenue Model side — the financial logic that makes the operational effort worthwhile.
WHY connects HOW and WHO along the Revenue Model side — the financial logic that makes the operational effort worthwhile.
❓How and when does money flow to us?
❓Per unit, subscription, commission, or other?
❓What are our major cost drivers?
❓Where do margins come from and how do they scale?
Real-World Examples
Netflix
Streaming Entertainment
WHO
Households wanting on-demand entertainment without ads or scheduling constraints
WHAT
Unlimited streaming of films, series, and originals — any device, all in one place
HOW
Content licensing + proprietary originals, recommendation algorithm, global CDN
WHY $
Flat monthly subscription. Low churn + massive scale = high-margin recurring revenue
Airbnb
Peer-to-Peer Accommodation
WHO
Two-sided: travelers seeking unique stays AND homeowners wanting income from spare space
WHAT
Authentic, affordable local accommodation — a personal alternative to generic hotels
HOW
Platform marketplace, trust & safety (reviews, ID), host and guest support
WHY $
Commission on every booking (~3% host + ~15% guest). Asset-light — owns no property
IKEA
Flat-Pack Furniture Retail
WHO
Budget-conscious families and young adults wanting stylish, functional home furnishings
WHAT
Modern Scandinavian-designed furniture at surprisingly low prices, self-assembled
HOW
Flat-pack slashes transport costs; customer does assembly; warehouse megastores
WHY $
High volume, low unit margin. Costs shifted to customer keep shelf prices low
Spotify
Music Streaming
WHO
Music lovers (free & premium) AND artists/labels seeking distribution
WHAT
Instant access to 100M+ tracks, personalized discovery, podcasts
HOW
Licensing deals, ML recommendation engine, freemium funnel, podcast acquisitions
WHY $
Freemium: ad-supported free tier converts to ~$10/month premium subscriptions
The 55 Patterns — click any to explore
Real-world examples
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