The document discusses business models and their key components. It provides examples of different types of business models, including strategic partnerships, joint ventures, buyer-supplier relationships, and multi-sided platforms. The key elements of business models are described as the value proposition, key activities, key resources, customer relationships, customer segments, distribution channels, and revenue streams. Different cost structures and pricing strategies are also mentioned.
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39. Experiments have shown that the right early interventions can correct this cycle.
Birmingham invested £41m in a range of schemes
helping families at risk, ultimately saving £101m in better outcomes for children.
Research suggests every £6,000 invested in Family Nurse Partnerships,
a programme for teenage mothers, saves £17,500 in unemployment
and educational failure later.
KPMG have estimated that intensive tuition programmes for children
with lowest ability in
literacy and maths can save up to £19 for every pound spent. Scaled up, such
policies could have a profound
impact on Britain’s structural deficit,
much of which is caused by paying for the future
costs of social failure.
101. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIP CUSTOMER SEGMENTS
(suppliers & partners)
Production (manufacturing) Bundle of products & services For customer adquisition Mass market
WHICH? Problem-solving For customer retention Niche market
(→ training) Solves a problem or satifies a For booting sales Segmented
Strategic alliance between Platform/network need Diversified (unrelated)
non-competitors (→ platform management) EXAMPLES OF RELATIONSHIP: Multi-sided (ex: VISA)
Coopetition Value may be Quantitative or Personal assistance
Joint ventures Qualitative Dedicated personal assistance
Buyer-supplier relationships Self-service
EXAMPLES OF VALUE: Automated services
Newness (cell phones) Communities
WHY?
Performance Co-creation
Customization
Optimization and economy of Getting the job done (Rolls Royce)
KEY RESOURCES CHANNELS
scale Design
Reduction of risk and Brand / Status (Rolex) How a company communicates
Physical (mfg, systems,
uncertainty Price (Ryan Air) with its customers
networks)
Acquisition of particular Cost reduction (salesforce) Phases:
Intellectual (hands,
resources and activities Risk reduction (guarantee) Rising awareness
knowledge, patents,
Accesibility (Net Jets) Helping customers evaluate the VP
databases)
Convenience / usability (iPod) Delivering the VP
Human (researchers,
Providing non-purchase VP
salesforce)
Financial (cash, credit, Channel types
stock options) Own (salesforce, wholesale, own
services)
Partner (partner services,
wholesale)
COST STRUCTURE REVENUE STREAMS
Cost-driven business models (→ focus on minimize costs. Ex: Ryan Air) The cash the company generates from each customer segment
Value-driven business models (→ focus on value creation. Ex: Luxury Hotels) (who is willing to pay)
One-time payment or recurring revenues
Fixed cost
Variable cost Asset sale (books) | Usage fee (hotel room) | Licensing | Lending/renting/leasing
Economics of scale (fall of average cost per unit) Subscription fees (gym) | Brokerage fees | Advertising
Economics of scope (same resource applied to different markets or customers)
Fixed menu pricing (list price, product feature dependent, costumer segment
dependent, volume dependent) or dynamic pricing (negotiation, yield
management, real-time market, auctions)