Business Models Flashcards
what is a business model
A business model describes the rationale of how an organization creates, delivers, and captures value
Help achieve and maintain business viability
9 building blocks
buisness model stories
- precisely delineated characters
- plausible motivations
- plot that twists
9 building blocks
- customer segments
- customer relationships
- channels
- revenue streams
- value proposition
- key activities
- key resources
- key partners
- cost structure
9 building blocks cover three main areas of the business
- desirability
- feasability
- viability
desirability
- value
create value
desirability building blocks
- value proposition
- customer segment
- customer relationships
- channels
what is desirabilty
Creating customer demand – make the product attractive enough so they want it, creating value or customers – are they finding value in your products
viability
- value
capture value
viability building blocks
- revenue streams
- cost structure
what is viability
Funds you need to carry our actions, need to sustain the business, revenues need to cover costs
feasability
- value
deliver value
feasibility building blocks
- key resources
- key activities
- key partnerships
what is feasabilty
What the business needs in order to be successful
value proposition
Value proposition – what are you doing
Ex – a one stop shop to provide everyday low pricing for the mass market
customer segment
Customer segment – who are you creating value for
Ex – families with children, students, budget conscience consumers
channels
how a company communicates with and reaches its customers (physical stores, website)
Ex – physical in store, website, mobile app
customer relationships
the type of relationships a company establishes with customers – can be personal vs impersonal (automated)
Ex – customer service, rewards programs, greeters, employees (cahsiers)
revenue streams
how the business makes money/ generate from each customer segment (sales, tips)
Ex – consumer packaged goods, grocery items, clothes
cost structure
describes all costs/expenses incurred to operate a business
Ex – rent, salaries, inventory, advertising/ promotion
key activites
important things the company must do to make the business work (where they make/promote products)
Ex – Inventory control, customer service, distribution coordination, marketing/sales
key resources
important assets required to make a business model work, allow an enterprise to create and offer value to its customers
Ex – Employees, brick and mortar stroes, brand reputation, distribution system (logistics)
key partners
the network of suppliers and partners that make the business model work
Ex – third party vendors, manufacturing/ supply chain partners
integrative thinking between building blocks
They are all meant to fit together
Sell tickets and make profits on refreshments
Key resource = theatres
Placement of the refreshment stands, can buy your tickets there
Key activity = staff training
Teach staff to up sell
business model patterns
- bait and hook
- freemium
- servizing
- multi-sided platform
