03 - tyib - business model
TRANSCRIPT
• What is it?
• Tradi,onal Business Model • Component of Business Model • How to use the Component?
• Innova,ve Business Model • Revenue Model
• A method of doing business by which a company can generate revenue to sustain itself
• Spells out where the company is posi,oned in the value chain – ac,vi,es the company adds value to the product/ service it supplies.
• Are a subset of business plan
• Wal‐Mart, Tesco, Carrefour, etc: buys merchandise, sells it, and generate profit.
• TV sta,on: free broadcas,ng to its viewer but survive upon a complex business model involving adver,sers and content providers.
• Yahoo!, Google, etc
Cost Structure
Key Ac,vi,es
Core Capabili,es
Partner Network
Value Proposi,on
Customer
Customer Rela,onships
Distribu,on Channels
Revenue Stream
INFRASTRUCTURE OFFERING CUSTOMERS
FINANCIALS
• Most common EC models
• Sales may be from a manufacturer to a customer, elimina,ng intermediaries/ physical stores
• Eg. Dell
• Model in which a buyer sets the price he/she is willing to pay and invites sellers to supply the good or service at that price
• Eg. Priceline.com • will try to match the customer’s request with a supplier willing to sell the product/ service at that price
• A customer specifies his/ her need and then an intermediate company (eg. Hotwire.com) matches the customer’s need against a database, locates the lowest price, and submits it to the consumer
• Poten,al buyer has 30‐60 min to accept/ reject the offer
• Eg. Norwich Union, Pricerunner.com, Kelkoo.com
• Customiza*on: Crea,on of a product or service according to the buyer’s specifica,ons
• Eg. Dell – PC, Nike – shoes, Mabel – Barbie dolls
• A method that a company, organisa,on or individual uses to collect money from users of their product or service.
• In essence, a method of earning money and a way to collect it.
• Companies generate revenue from selling merchandise/ services over their Websites (Wal‐Mart)
• Companies receives commission based on the volume of transac,on made (broker, realtor)
• Customers pay a fixed amount (monthly), to get some type of service (Astro, TMnet)
• Companies receive commissions for referring customers to others’ Web sites (Amazon.com)