Kapitel 1: Business Model Overview and Strategy

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Questions and Answers

What pricing strategy is used for printers and ink cartridges?

Low margin for printers and high margin for cartridges (correct)

High margin for printers and low margin for cartridges

High margin for both printers and cartridges

Equal margin for printers and cartridges

In systems with a service component, what is a common tactic to ensure customer retention?

Providing low-cost service plans

Implementing multi-year contracts (correct)

Enhancing competition among service providers

Offering an easy cancellation policy

How do mobile communication service providers typically structure their pricing models?

Constant pricing throughout the contract

Free service for the first year with high costs thereafter

Initial high prices followed by discounts

Low initial prices followed by price increases upon renewal (correct)

What common characteristic do multicomponent pricing models exploit?

Lock-in effects Signup and view all the answers

Which example is indicative of a complementary relationship in pricing models?

Printers and ink cartridges Signup and view all the answers

Why are OEM's cartridges significant to printers in multicomponent pricing models?

They ensure proper functionality of the printer Signup and view all the answers

What feature commonly increases the margin in mobile communication pricing?

Short message services Signup and view all the answers

Which of the following items illustrates a common practice in value capturing models?

Integrating higher-than-industry standard rates for replacements Signup and view all the answers

What role does business strategy play in relation to business models?

It gives guidance and direction, influencing business model choice. Signup and view all the answers

Which framework is commonly used for developing business models?

Business Model Canvas Signup and view all the answers

How can a business model be structured?

It can be divided into submodels and components. Signup and view all the answers

What is the relationship between business models and business process models?

Business models guide the details laid out in business process models. Signup and view all the answers

What factor is essential for the evolution of the business model concept?

Adaption of changing market needs and perspectives by researchers. Signup and view all the answers

What does the Business Model Canvas help to design?

Submodels and components of a business model. Signup and view all the answers

At what time period was the business model concept developed?

Around the turn of the millennium. Signup and view all the answers

Which of the following is NOT a component relevant to business models?

Capacities and skills of employees. Signup and view all the answers

What is a key benefit of the platform model?

It facilitates business interactions between third parties. Signup and view all the answers

What type of growth pattern is typically associated with the platform model?

A low growth phase followed by a rapid increase. Signup and view all the answers

What is a significant risk associated with the platform model?

Participants may try to bypass the platform. Signup and view all the answers

Which of the following describes the scalability of the platform model?

Highly scalable with positive network externalities. Signup and view all the answers

What challenge does the platform model face during its buildup phase?

Difficulty in mobilizing a critical mass of participants. Signup and view all the answers

What is a key characteristic of the growth dynamics in a machine or plant model?

Flat output curve capped by asset capacity Signup and view all the answers

In terms of scalability, how is the product model generally described?

Highly scalable as units can be adjusted to meet demand Signup and view all the answers

What type of products are typically associated with the product model?

Standardized goods driven by consumer perception Signup and view all the answers

What is one of the main risks associated with the product model?

Changes in demand according to the product lifecycle Signup and view all the answers

Why is the machine or plant model considered predictable?

It typically has stable operating costs Signup and view all the answers

How does capital intensity differ between the product model and the machine or plant model?

The machine or plant model has high capital intensity with long depreciation periods Signup and view all the answers

What determines the output type in the machine or plant model?

Specifications defined during asset development Signup and view all the answers

Which of the following sectors is an example of the machine or plant model?

Freight transport and mining operations Signup and view all the answers

What is a common characteristic of multicomponent pricing models involving printers and ink cartridges?

Both printers and ink cartridges are designed as a closed system. Signup and view all the answers

In the context of multicomponent pricing, what is the incentive provided to customers for service components?

Customers are often forced to buy OEM's service. Signup and view all the answers

What pricing strategy is displayed in mobile communications after the initial period of service?

Prices typically increase upon automatic renewal. Signup and view all the answers

What do multicomponent pricing models often exploit to increase revenue?

Low transparency and selective price sensitivity. Signup and view all the answers

Which of the following is NOT a typical example of a multicomponent pricing model?

Razor systems and fixed utility plans. Signup and view all the answers

What role do service contracts play in multicomponent pricing models?

They are often offered as multi-year contracts to customers. Signup and view all the answers

Which of the following best describes the concept of 'value capturing' in business models?

Designing systems to ensure continual revenue through additional services. Signup and view all the answers

What is often a consequence of low transparency in multicomponent pricing models?

Customers may feel misled, yet remain loyal due to lock-in effects. Signup and view all the answers

Study Notes

Business Model Overview

A business model comprises products, services, capabilities, and resources, integrating customer, partner, and supplier interactions.
Business models can be segmented into submodels and components for deeper analysis.

Business Strategy and Model Mechanics

Business strategy directs the choice of the business model, establishing essential guidance and direction.
The detailed workings of a business model are further elaborated within a business process model.

Business Model Canvas

The Business Model Canvas is a popular framework used to design and develop business models effectively.
It aids in formulating various submodels and components of a business.

Evolution of Business Model Concept

The concept of business models emerged around the year 2000 and has continuously evolved.
Researchers view business models from multiple perspectives, considering different aspects and definitions.

Multicomponent Pricing Models

Printers are commonly sold at low margins, while high-margin ink cartridges create a closed system limit with only original equipment manufacturer (OEM) products.
Other pairings include coffee machines with capsules and razors with blades, exemplifying low-cost hardware coupled with high-margin consumables.

Service Components in Pricing Models

Some models integrate service components available through multi-year contracts, obliging customers to engage with OEM services (e.g., in sectors like automotive and software).

Mobile Communication Pricing Structure

Initially, basic mobile services are offered at low prices, but after the renewal period, prices typically increase, allowing for additional high-margin features.

Such pricing models often leverage low transparency and selective price sensitivity, impacting consumers' purchasing behaviors.

Value-Capturing and Value-Creation Models

The study module outlines different segments focused on understanding both value-capturing and value-creation models in business.

Scalability of Business Models

The product model involves development and mass production of goods, showing positive scalability linked to sales volume.
The growth pattern is linear, driven by units sold, while risks include fluctuating consumer demand over a product's lifecycle.

Platform Model Characteristics

Platform models generate value by facilitating connections between third-party businesses and monetizing those transactions.
Growth typically follows a "hockey stick" curve, starting slow and increasing rapidly once critical mass is achieved.
High capital intensity is required initially before transitioning to lower ongoing costs as the platform grows.

Key Risks in the Platform Model

The risk of participants bypassing the platform can undermine its success.
Maintenance of platform hygiene becomes imperative as the user base expands.

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Description

Explore the intricacies of business models, including their components, strategies, and evolution. Learn about frameworks like the Business Model Canvas and understand how various pricing models affect business decisions.