Unit 11.9 Flashcards
Business Model-
How the components of a business fit together to make a profit.
Business Models can be…
intentionally created or happen by happenstance
Business models are created and evolved through:
- the implementation of strategy
- the firm’s reaction to past business circumstances
Business models are the result of:
- historical decisions and trade-offs
- also influence the development of future strategies
Components of portraying and analyzing a firm’s business model:
- Value Delivery
- Value Creation
- Value Capture
Value Delivery
- Customer facing and customer centric
- Specific needs being addressed by the firm’s products
- How customers are organized into segments
- Marketing channels used
- How relationships are formed to acquire, keep and grow the customer base
Value Creation
- Focuses on business operations
- Core Competencies
- Key Business Activities
- Strategic resources
Strategic Resources
Resources that are important to a firm’s competitive advantage
Core Competencies
Unique capabilities that enable the firm to deliver and support the firm’s competitive advantage
Key Activities
The most important things that the business needs to do to be successful
Fit
How the activities of the firm interact and reinforce each other
- Can drive up competitive advantage and sustainability
Activities are supported by the…
resources of the firm
Resources are…
the assets of the firm (tangible or intangible)
Strategic Partnerships are…
the alliances of business forms to acquire capabilities and resources.
- Can help reduce risk
Economic Model
How the firm captures value
