Business Models

Question 1

What are the building blocks of the business model canvas?

Answer 1

1. Key Partners
2. Key Activities
3. Key Resources
4. Value Propositions
5. Customer Relationships
6. Channels
7. Customer Segments
8. Cost Structure
9. Revenue Streams

Question 2

Why are business models important?

Answer 2

Help to maintain business viability

Question 3

What do good business models have? What do they relate to?

Answer 3

Clear characters
Credible motivations
Plot with logical connections and ideally, unique twists

Stories

Question 4

What are some examples of plot twist/distruptors?

Answer 4

Uber - taxi company with no taxi’s
Facebook - most popular media owner, creates no content
Alibaba - most valuable retailer, has no inventory
Airbnb - Largest accommodation provider, has no real estate

Question 5

What are the steps to developing a business model?

Answer 5

Thinking about purpose
Prototyping different models
Understand your environment
Test and prove hypothesis

Question 6

What is the bait and hook business model?

Answer 6

Lock customers in with a base product (the bait) in order to generate recurring revenues from a consumable (hook) that customers need recurrently to benefit from the base product
i.e gilette

Question 7

What is the multi-sided platform model?

Answer 7

Value is created by facilitating interactions between two or more distinct but interdependent groups of customers - network effect
ex. airbnb

Question 8

What is the freemium business model pattern?

Answer 8

Offering basic products and services free of charge and premium services and advanced product features for a fee
Ex. spotify

Question 9

What do the best freemium models excel in?

Answer 9

Converting a large customer base and converting a substantial percentage of them to paid users

Question 10

What is the servicizing business model?

Answer 10

Changing business model from selling products to providing services - involves providing function rather than selling products.
ex. Xerox printing

Question 11

Why would a business turn to servicizing?

Answer 11

1. to turn demand for reduced material use into a strategic opportunity
2. services are more difficult to imitate, creating competitive advantage

Question 12

What is the difference between social enterprises and traditional charity?

Answer 12

Social enterprises use impact investing (achieving social impact alongside financial return), which they reinvest into the company.
Traditional charities are driven by social value only, are funded only by grants, donations or endowment

Question 13

What is a traditional business? What features can it share with social enterprises?

Answer 13

Primary driver is financial value, focused pure profit and mainstream investors. Features it could share would be CSR and corporate philanthropy.

Question 14

What feature can a social enterprise have leaning towards a traditional business?

Answer 14

Mission-driven for-profit enterprise

Question 15

What feature can a social enterprise have leaning towards a traditional charity?

Answer 15

Potentially self-sustaining >75% market revenues

Question 16

What feature can a charity have leaning towards a social enterprise?

Answer 16

Additional market based revenue stream

Question 17

What are the added boxes on the social business model canvas?

Answer 17

1. Type of intervention (what is the format of intervention? Workshop, service, product?)
2. Surplus (where do you plan to invest profits)
3. Customer and beneficiary segments
4. Value proposition sub-sections including social value proposition, impact resources, and customer value proposition

Question 18

What sections of the business model canvas are under deliver = feasibility?

Answer 18

key activities and key partners

Question 19

What sections of the business model canvas are under create = desirability?

Answer 19

Customer segments, value proposition, customer

Question 20

What sections of the business model canvas are under capture = viability?

Answer 20

Cost structure, key resources, channels, and revenue streams