Book 2_Corp_BUSINESS MODELS Flashcards
1
Q
A business model
A
- Should identify a firm’s potential customers
- describe its products or services
- and explain how it will sell them
- describe its key assets and suppliers
- and explain its pricing strategy.
2
Q
Pricing model
A
- Bundling
- Razors-and-blades
- Add-on pricing
- Penetration pricing
- Freemium pricing
- Hidden revenue
- Subscription model
- Licensing and franchising
3
Q
A value proposition
A
refers to how a firm’s customers will value the characteristics of the product or service
4
Q
A value chain
A
refers to how a firm executes its value proposition.
- Inbound logistics
- Operations
- Outbound logistics
- Marketing
- Sales and service
5
Q
other business models
A
- Apart from industry-specific conventional business models:
+ private label manufacturers
+ licensing agreements.
+ value-added resellers
6
Q
Network effects
A
refer to the increase in the value of a network as its user base grows
7
Q
Crowdsourcing models
A
benefit from user contributions’content in the case of Wikipedia, traffic conditions and events in the case of Waze, and product improvements or new applications in the case of open-source software.
