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It has become fashionable to discuss business models, but there is much confusion about what business models are and how they can be used. In fact, business models can serve a positive and powerful role in corporate management. Although authors have offered definitions of 'business model', none appears to be generally accepted. This lack of consensus may, in part, be attributed to interest in the concept from a wide range of disciplines, all of which have found a connection to the term. To help managers better understand business models, this paper reviews the extant literature and identifies and classifies the components of business models cited therein. Components were classified into four primary categories: strategic choices, the value network, creating value, and capturing value. Offers a definition of 'business model' that integrates and synthesizes earlier work. Based on the proposed definition, the case contrasts business models with strategy. Also, discusses four problems associated with business models.