Final answer:
A business model is the way a company applies its knowledge and resources to create and deliver value to its customers.
Step-by-step explanation:
In the context of business, the word that fits the blank in the question is business model. A business model is the way a company applies its knowledge and resources to create and deliver value to its customers. It encompasses how the company generates revenue, manages costs, and differentiates itself from competitors.
For example, let's consider the business model of a technology company that develops and sells a smartphone. The company may capture value by applying its knowledge and expertise to design and manufacture the phone, then selling it to customers at a price higher than the cost of production. The company's business model also includes strategies for marketing, distribution, and after-sales support.
In summary, a business model is a foundational concept in the field of business that describes how a company leverages its knowledge and resources to create value and generate profit.