Revision lecture 1

Question 1

What are the components in the 4-element business model?

Answer 1

Customer sensing
Customer engagement (taxi or bus)
Monetisation
Value chain linkages

Question 2

What are the two sides of a business model?

Answer 2

Supply side-how to create value for producers and distributors and the demand side- how can it create value for customers/users

Question 3

Product vs solution?

Answer 3

Product-standardised, Solution- tailored

Question 4

What is the frequent division between sides of a multisided business model?

Answer 4

There is a subsidised and moneymaking side

Question 5

What are the challenges in multisided business models

Answer 5

getting the pricing right (often users are more price-sensitive), coping with winner takes all competiution and avoiding envelopment

Question 6

What is envelopment

Answer 6

When the g/s provided by your firm can be added to a larger range of service of another, bigger firm

Question 7

What factors is the performance of multisided business model based on?

Answer 7

Increasing returns to adoption, switching costs and differentiation among offers

Question 8

When can multiple multisided platforms exist

Answer 8

When returns to adoption are low, switching costs are low and differentiation is high

Question 9

What are the types of business model change?

Answer 9

6: SSAIEP:
Splitting
Substituting
Augmenting
Inverting
Excluding
Porting

Question 10

What is inverting?

Answer 10

turning a specific part of the model into a standalone

Question 11

What are the outtakes of the approaches to digital piracy paper?

Answer 11

That regulation was ineffective in dealing with digital piracy as it offered a business model which resonated with more people in comparison to exisiting methods of sharing media. Then spotify and netflix came thru

Question 12

Demand-side synergies

Answer 12

Network effects (if one side of customers increases does the other one)?
One-stop-shop effects (NYT readers and podcast listeners)