A business model comprehensively describes how an organization creates, delivers, and captures value, outlining its specific approach to spending and earning money to generate profit. This framework is crucial for classifying businesses, guiding entrepreneurial ventures, and serves as a tool for managers to explore future development and foster innovation. The term "business model" first appeared in 1832, and early 20th-century innovations included the "bait and hook" model, exemplified by razors and blades or Adobe's free software/paid writer.

Significant advancements continued from the 1950s through the 1990s, with companies like McDonald's, Wal-Mart, FedEx, Intel, Netflix, and Amazon.com pioneering diverse and successful models. Today, business models are increasingly influenced by technology, enabling new internet-based ventures to reach vast audiences efficiently, and must also adapt to globalization and complex supply chains.