What is a key activity in a business model?

A key activity in a business model refers to the main actions or operations that a business engages in to create value and deliver its products or services to customers. It focuses on how a business operates to achieve its objectives and satisfy customer needs. Marketing and customer engagement strategies are essential components within this framework as they directly influence how a company attracts and retains customers, which is crucial for sustaining business performance and growth.

Effective marketing strategies help identify target markets, position the product or service within those markets, and communicate value effectively to potential customers. Customer engagement strategies ensure that the business maintains relationships with its customers, which can lead to brand loyalty and repeat business. Thus, these activities are core to the business model as they support revenue generation and customer satisfaction.

In contrast, while a company’s mission statement defines its purpose and values, it doesn't detail specific operational activities. Similarly, the development of company policies and the annual budget plan are important for governance and fiscal management respectively, but they do not represent the distinct actions taken to create offerings and engage with the market directly.