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Peter Ducker
Who said that “A business model is supposed to answer, who your customer is, what value you can create/add for the customer and how you can do that at reasonable cost?
Business model
A _________ is supposed to answer
who your customer is.
what value you can create/add for the customer?
and how you can do that at a reasonable cost.
Business model
In a simple definition, it is the foundation of the company’s
core value proposition
targeting customers
key resources, and
assumed revenue streams, it offers a framework for success and overcoming success
Alexander Osterwalder
In his early book “Business Model Ontology” the Business Model Canvas consisting of nine segments for its building blocks.
one-page canvas
This business model can be written in a ______________
Manufacturer
Distributor
Retailer
Franchise
Brick and mortar
Brick and click
Direct sales
high touch
family owned
9 Types of Business Models
Manufacturer
Under the TYPES OF BUSINESS MODEL:
– a person or registered company which makes finished products from raw materials in an effort to make a profit.
Distributor
Under the TYPES OF BUSINESS MODEL:
an entity or company that purchases noncompeting products or product lines, stores them in warehouses and resells them to retailers or directly to the customers
Retailer
Under the TYPES OF BUSINESS MODEL:
– a person or business that purchase goods from the wholesaler or directly from the manufacturer.
Franchise
Under the TYPES OF BUSINESS MODEL:
– can be a manufacturer, distributor, or retailer*.*
Brick-and-mortar
Under the TYPES OF BUSINESS MODEL:
this model refers to the old-fashioned street-side business that sells products and services to its customers face-to-face in an office or stores that the business owns a rents.
Bricks-and-clicks
Under the TYPES OF BUSINESS MODEL:
– combining online and physical presence.
Direct Sales
Under the TYPES OF BUSINESS MODEL:
– In this model, the products are directly sold to customers.
High Touch
Under the ^^TYPES OF BUSINESS MODE^^L:
this model uses a lot of human interaction and involvement in order to the experience highly personalized. They operate on trust and credibility to earn revenues.
Family owned
Under the TYPES OF BUSINESS MODEL:
– owned and operated by family. Decision making are controlled by family members.
Franchise
This Basic Types of the Modern Business Model is buying
an existing business to license to operate
High touch
This Basic Types of the Modern Business Model is the Service
industry. Consumer interacts more w/ service
Nickel & Dime
This Basic Types of the Modern Business Model is Offering
at lowest price
Freemium
This Basic Types of the Modern Business Model is Availing
products at free but if you want premium you will pay
Subscription
This Basic Types of the Modern Business Model is You have to pay a fixed amount to the service being delivered
Aggregator
This Basic Types of the Modern Business Model is
Middle man (ex.food panda, grab, Airbnb)
One service provider
Online Market Place
This Basic Types of the Modern Business Model is availing products at online shop
Hidden Revenue
This Basic Types of the Modern Business Model is
When we though it’s free but companies/other business earn revenue (ex. Youtube)
Data licensing/Data Selling
This Basic Types of the Modern Business Model is
-selling data of specific group or anything
-Task to search a characteristic
Agency based
This Basic Types of the Modern Business Model is an Agency
that provide people you need
Affiliate marketing
This Basic Types of the Modern Business Model is
No one sells commission
If earning money through the link you gave
Dropshipping
This Basic Types of the Modern Business Model is to Receive payment, no shipment
a business model that allows you to sell products online without having to own or operate the physical location where those products are stored and processed
Network marketing
This Basic Types of the Modern Business Model is
One of the most misunderstood
When there is no product involve/value exchange, there is no business (scam)
Your product is available in different market
Crowdsourcing
This Basic Types of the Modern Business Model is Searching
how much people are willing to buy your product
Blockchain
This Basic Types of the Modern Business Model is having No
actual ownership but your investing online
low touch
This Basic Types of the Modern Business Model is Doing
self service- customers do all the service themselves
Razor & blade
This Basic Types of the Modern Business Model is
No product can function without the other (complementary product)
Ex: Printer & ink
Consulting
This Basic Types of the Modern Business Model is
Paying for consultation service
Social enterprise
This Basic Types of the Modern Business Model is Helping
those who doesn’t have enough in the community
Infrastructure
Offering
Customer
Finance
4 Major Parts of Business Model Canvas
key partners
key activities
key resources
There are 3 parts include in infrastructure- in 4 MAJOR PARTS OF BUSINESS MODEL CANVAS
Value proposition
What does the BMC offer?
Customer Relationships
Customer Segments
Channels
There are 3 parts of customers in 4 MAJOR PARTS OF BUSINESS MODEL CANVAS
1.Cost structure
Revenue Streams
There are 2 parts of finance in 4 MAJOR PARTS OF BUSINESS MODEL CANVAS
KEY PARTNERS
In the parts of Business Model, they are described as the network of suppliers and partners that may provide the business model more effective
Strategic alliances
Coopetition
Joint ventures
Buyer-supplier relationship
4 Types of partnership UNDER KEY PARTNERS
Strategic alliances
This partnership is an arrangement between non-competitors to help each other.
Coopetition
This is an arrangement between competitors to help share the risk that these companies may take.
Joint-ventures
This partnership is an arrangement between two or more businesses pooling their resources and expertise to achieve a particular goal.
Buyer-supplier relationships
The most usual type of partnerships
KEY ACTIVITIES
In the parts of the Business Model, they are described
The most essential activities in achieving a company’s value proposition and operating successfully.
Marketing
Sales
Design
Operations
Distribution
Customer experience
6 Categories of Key activities
Marketing
This Category of Key activities is described to be
adding value by promoting the products
Sales
This Category of Key activities concerns selling a product
Design
This Category of Key activities is about forming designs of various items
Operations
This Category of Key activities is about
manufacturing of goods and delivery of services
Distribution
This Category of Key activities is about
reaching out to customers to sell and deliver
Customer Experience
This Category of Key activities is about
customer service, consulting and customer support
KEY RESOURCES
In the parts of Business Model, they are described as
the most important assets required to make a business model work.
Physical
Intellectual
Human
Financial
4 Categories of KEY RESOURCES
Physical
This Category of KEY RESOURCES are physical assets which are considered tangible resources that a company make use to form its value proposition
Intellectual
This Category of KEY RESOURCES are non-physical, intangible resources such as
brand
patents
proprietary knowledge
copy rights and partnerships.
Human
This Category of KEY RESOURCES is the biggest and most vital resources of any company but are often overlooked.
Financial
This Category of KEY RESOURCES represents money management and the process of acquiring needed funds
CUSTOMER VALUE PROPOSITION
In the parts of the Business Model, It is a businesses’ way of generating value in their product or service when targeting potential customers.
value proposition
A _____________ is a statement consisting of the reason/s some should do business with the company.
Functional Value
Emotional Value
Economic Value
Symbolic Value
4 Factors in Value Proposition
Functional Value
4 Factors in Value Proposition:
– the product offers the solution to a particular problem.
Emotional Value
4 Factors in Value Proposition:
– the product is pleasant to look at or attractive.
Economic value
4 Factors in Value Proposition:
- the product offers a financial advantage, promotes energy conservation, saves time or is innovative
Symbolic Value
4 Factors in Value Proposition:
– for customers the product is valuable because of a certain type of status given to the customer.
CUSTOMER RELATIONSHIPS
In the parts of the Business Model, these are types of relationship a company forms with its particular customer segments**.**
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation
6 Types of Customer Relationships
Personal assistance
6 Types of Customer Relationships
-founded on human collaboration, the customer can communicate with a real sales person
Dedicated personal assistance
6 Types of Customer Relationships
– the deepest and most intimate relationship that involves assigning a salesperson to an individual customer.
Self-service
6 Types of Customer Relationships
– there is no direct relationship , although the essential things to assist customers help themselves are given
Automated services
6 Types of Customer Relationships
– combination of customer self-service and automated processes.
Communities
6 Types of Customer Relationships
– can be used by the companies to be more close and connected with their current and potential customers
Co-creation
6 Types of Customer Relationships
- extension of the traditional customer-vendor relationships
Customer Segments
In the parts of Business Model, they are referred to demographics such as age, ethnicity, profession and/or gender**; or** psychographic factors which include spending behavior, interests, and motivations.
Mass
Niche
Segmented
Diversified
Multi-sided platforms
5 types of customer segments
Mass
5 types of customer segments
– an unsegmented market in which products with mass appeal products are offered to every customers.
-The customer value proposition for this segment must be for a bi number of people who has similar problem or need requirements.
Ex: Soft drinks
Niche
5 types of customer segments:
this market speaks for a customer segment with very distinct characteristics and extremely specific needs____.
Ex. Automobile parts
Niche
5 types of customer segments
This segment needs a highly customized products, custom made to fit their needs.
Segmented
5 types of customer segments
this customer segments have very small differences in their need requirements.
In this segment, the company forms various customer value propositions based on these small differences in the customer segments
Diversified
– these customer segments have very diverse needs and wants. One of the diversified companies in the Philippines is San Miguel Corporation.
Multi-sided platforms
5 types of customer segments
this type of customer segment is used when customer segments are reliant with each other, which makes it necessity to serve both sides of balances.
- Example, credit cards.
CHANNELS
In the parts of Business Model,
ü These are touchpoints through which a company communicates with its target customers____.
Awareness
Evaluation
Purchase
Delivery
After sales
5 phases that a channel is appropriate