Teece Flashcards
What is the primary focus of David J. Teece’s text “Business Models, Business Strategy and Innovation”?
The primary focus is on understanding the role of business models in strategy and innovation.
How does Teece define a business model?
Teece defines a business model as the design or architecture of the value creation, delivery, and capture mechanisms employed by a business.
What are the key components of a business model according to Teece?
The key components include value proposition, revenue model, market segment, value chain structure, cost structure, and competitive strategy.
Why are business models important for innovation?
Business models are important for innovation because they help in commercializing new technologies and ideas, turning them into viable products or services.
What role does the customer play in a business model?
The customer is central to the business model, as understanding customer needs and preferences is crucial for creating a compelling value proposition.
How do business models relate to competitive advantage?
Business models relate to competitive advantage by providing unique ways to deliver value to customers that are difficult for competitors to replicate.
What is the significance of dynamic capabilities in the context of business models?
Dynamic capabilities are significant as they enable firms to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments, which is crucial for evolving and adapting business models.
How does Teece distinguish between business models and business strategy?
Teece distinguishes them by stating that a business model is the logic of the firm, the way it operates and how it creates value for stakeholders, while strategy is the plan to achieve competitive advantage.
What is a value proposition in a business model?
A value proposition is a statement that summarizes why a consumer should buy a product or use a service, highlighting the unique benefits and solutions provided.
How can firms use business models to explore new market opportunities?
Firms can use business models to experiment with different value propositions, revenue models, and distribution channels to identify and exploit new market opportunities.
What challenges do firms face when innovating their business models?
Challenges include resistance to change, the complexity of redesigning value creation processes, potential disruption to existing revenue streams, and the need for new skills and capabilities.
According to Teece, what is the relationship between technological innovation and business model innovation?
The relationship is that technological innovation often requires complementary business model innovation to fully capture value from new technologies.
Why is flexibility important in a business model?
Flexibility is important because it allows the firm to adapt to changes in the market, technology, and customer preferences, ensuring long-term sustainability and competitiveness.
How does Teece suggest companies should approach business model design?
Teece suggests that companies should approach business model design systematically, considering market needs, leveraging core competencies, and ensuring alignment with the overall strategic goals of the firm.
What impact does globalization have on business models according to Teece?
Globalization impacts business models by increasing the complexity of value chains, expanding market opportunities, and necessitating adaptations to different regional demands and regulatory environments.
