Class 7

Question 1

Business model:

Answer 1

How a business creates, delivers, and captures value including how it intends to make money and conduct business with buyers suppliers and partners.

Question 2

Valued is delivered by:

Answer 2

Fulfilling unmet needs in an existing market, delivering existing but differentiated market needs.

Question 3

Strategic position:

Answer 3

A company’s unique combination of value creation and cost within a specific market.

Question 4

If you are too focused on making ______, then you will eventually start to behave _______.

Answer 4

Money, unethically.

Question 5

Strategic positioning choice:

Answer 5

Cost vs. value, tension between value and pressure to keep costs in check.

Question 6

Strategic positioning enhancement:

Answer 6

Decrease costs, increase producer surplus, increase consumer surplus via reservation price, increase value consumption.

Question 7

Differentiation strategic position:

Answer 7

Creating unique value proposition, increased value that consumers pay a higher price, unique features higher prices.

Question 8

Cost leadership:

Answer 8

Offering the least expensive product/service, seeks to create similar value vs competitors, charges lower prices.

Question 9

The two generic business strategies in strategic position are ______________ and differentiation, cost leadership is not a differentiation strategy.

Answer 9

Cost leadership, differentiation.

Question 10

Differentiation value drivers:

Answer 10

Product features, customer service, complements when they are consumed in tandem, marketing and promotion by generating reputation or perceptions of quality.

Question 11

Competitive advantage is achieved when:

Answer 11

Value – cost > competitors.

Question 12

Cost leadership appeals to the bargain-conscious buyer by:

Answer 12

Offering adequate value/quality, reducing costs below competitors, optimizing supply chain through economies of scale (decrease in cost per unit as output increases), learning-curve effects (less time to produce output with experience).

Question 13

Focused business strategies:

Answer 13

Narrower competitive slope like embracing super low cost or super high price and only one product or very few.

Question 14

Safest place to start as an entrepreneur is _______ differentiation.

Answer 14

Focused.

Question 15

Four parts of a business model:

Answer 15

Offering—WHAT is being provided to customers.
Customers—WHO is buying your product/service.
Infrastructure—HOW are you delivering your product.
Financial viability—Revenue costs exceed make a profit.

Question 16

Customer value proposition (CVP):

Answer 16

Offer better value than competitors, measurable in financial terms, be sustainable, solve what customer really wants/needs.

Question 17

Does your CVP meet the ADKAR model:

Answer 17

Awareness—why should I buy this, does it solve a need/want.
Desire—how is better than what I already have?
Knowledge—how does your product/service work?
Ability—can I afford it or use it correctly?
Reinforcement—does it do what you said it would do?

Question 17

What is the why to the customer value proposition:

Answer 17

Overt benefit (discernibly different than what’s on the market), real reason to believe (customers trusts you), dramatic difference (Differentiation of product compared to competition).