Business Models & Fighter Brands Flashcards
business model schematic
customer value proposition> profit formula> key resources> key processes
two-sided platforms
coordinate demand between groups that need each other
when do you drive for scale over profit?
network effects are large; customer switching costs are high; “winner take all” dynamics apply
core competency
exceptionally strong capabilities companies rely on for competitive advantage
core rigidity
resistance or inability to change the business model even when necessary
cannibalization rate
The percentage of new product volume that is taken from the company’s prior product volume
channel shift
change in the channels through which customers learn about and purchase your product
break-even cannibalization rate
margin on the new product / margin on the old product
sensitivity analysis
How likely is it that cannibalization will be worse than Breakeven?
