Business Strategy MidI Flashcards
What’s the Business Model
Tool used to describe the key elements of a firm
What’s the purpose of the Business Model?
Think, design, and test (also used as a comparative tool among businesses)
Value proposition
Why does the firm exist? What’s the firm offering? e.g. customization, cost reduction, improved performance, risk reduction, etc.
Cutomer Segments
Who’s problems is the company addressing? Understand segment whose needs are being adressed.
Channels
How does the company reach consumers? Channels accompany vustomers from the awareness stage to the after sale.
Customer Relationship
Establish the kind of relationship you want with consumer. e.g. personal assistance, self service, communities, co-creation, etc.
Revenue Streams
How are the customers paying? one time payment, subscription fee, renting/leasing, licencing, etc.
Key resources
Internal key elements that contribute the most to the value of the value proposition. e.g. human, physical, financial, digital, knowhow, etc.
Key activities
Combination pf resources organized in a structured way that contribute the most to value proposition.
Key partnerships
Network of partners that allows the fulfillment of the vale proposition for customers.
Cost structure
Impact of resources and activities on the company’s costs.
Business Strategy
Plan to gain and sustain competitive advantage that involves making four inter-related strategic choices: (1)Market to compet in; (2) Firm’s unique value; (3) Resources and capabilities; (4) ways to sustain competitive advantage.
Deliberate Strategy
Implemented as a result of careful analysis of markets, customers, competitors, and firm’s resources and capabilities.
Emergent strategy
Not a planned/deliberate strategy, because of an unstable environment therefore difficult to haves a planned strategy.
Why do we need strategy?
Maps, taxonomies, and creativity
