Business model

Question 1

Customer segments

Answer 1

Groups of people or organisations an enterprise aims to reach or serve – each with specific customer needs

Question 2

Customer groups represent separate segments if

Answer 2

♦ Their needs require and justify a distinct offer
♦ They are reached through different Distribution Channels
♦ They require different types of relationships
♦ Thes have substantially different profitabilities
♦ They are willing to pay for different aspects of the offer

Question 3

Kinds of Customer Segments

Answer 3

Mass market
Niche market
Segmented
Diversified
Multi sides platform

Question 4

Mass market

Answer 4

Do not distinguish between different Customer Segments. VP, DC and CR focus on one large group of customers with broadly
similar needs and problems

Question 5

Niche market

Answer 5

Cater specific, specialized customer segments, VP, DC,
CR are tailored to specific requirements of a niche market.

Question 6

Segmented

Answer 6

Distinguish between market segments with slightly different
needs and problems (e.g. private and business customers)

Question 7

Diversified

Answer 7

Unrelated Customer Segments with very different needs and
problems, i.e. different VP (e.g. Amazon being retailer and cloud
provider)

Question 8

Multi-sided platforms/markets:

Answer 8

Several interdependent Customer
Segments, (e.g. readers and advertisers of newspaper)

Question 9

Value proposition

Answer 9

the reasons why customers turn to one company over the other

consists of a selected bundle of products and/or services
that caters to the requirements of a specific CS

Question 10

Channels

Answer 10

How company communicates with and reaches ist Customer
Segments to deliver a Value Proposition

Question 11

Channels serve several functions:

Answer 11

Awareness
Evaluation
Purchase
Delivery
After sales

Question 12

Categories of customers relationships

Answer 12

Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co creation

Question 13

Revenue streams

Answer 13

Represents the cash a company generates form each Customer Segment

different pricing mechanims
such as fixed list prices, bargaining, auctioning, market
dependent, volume dependen or yield management

Question 14

Types of RS ?

Answer 14

• Transaction: 1-time customer
• Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide past-purchase customer support

Question 15

Key activities

Answer 15

• Production
• Problem solving
• Platform/network

Question 16

Key partnerships

Answer 16

Network of suppliers and partners that make the business model work

Question 17

4 types of key partnerships ?

Answer 17

• Strategic alliances (non-competitors)
• Coopetition
• Joint venture (develop new BM)
• Buyer-supplier

Question 18

Cost structure

Answer 18

All costs incurred to operate a business model, i.e. creating
and delivering value, maintaining Customer Relationships, and generating revenue

2 classes: cost driven or value drive

Question 19

4 types of Cost structure

Answer 19

• Fixed costs (vary not despite volume goods increase)
• Variable costs (vary proportionally with volume of goods produced)
• Economies of scale (costs advantages as output increases)

-Economies of scope: cost advantages due to a large scope of
operations (e.g. marketing may support multiple products)