Podcast
Questions and Answers
What is a defining characteristic of a social enterprise business model?
What is a defining characteristic of a social enterprise business model?
- It emphasizes the importance of making a positive social impact. (correct)
- It focuses strictly on maximizing profits for shareholders.
- It relies solely on government funding for its operations.
- It primarily aims to compete in global markets.
Which of the following is NOT an example of a company that follows a social enterprise business model?
Which of the following is NOT an example of a company that follows a social enterprise business model?
- TOMS Shoes
- Soapbox Soaps
- Warby Parker
- Deloitte (correct)
What type of business model does a company using hidden revenue rely on for income?
What type of business model does a company using hidden revenue rely on for income?
- External investments from venture capitalists.
- Direct user payments for services.
- Alternative revenue streams like advertising. (correct)
- Subscription fees from users.
What is the primary purpose of a business model?
What is the primary purpose of a business model?
Which of the following statements about the agency-based business model is true?
Which of the following statements about the agency-based business model is true?
Which of the following is not a component of a business model?
Which of the following is not a component of a business model?
Which of these companies is known for providing shoes to underprivileged children for every pair sold?
Which of these companies is known for providing shoes to underprivileged children for every pair sold?
Why is understanding the problem you are solving for customers crucial?
Why is understanding the problem you are solving for customers crucial?
What should a subject matter expert (SME) consider when selecting a consulting business model?
What should a subject matter expert (SME) consider when selecting a consulting business model?
How does a business plan differ from a business model?
How does a business plan differ from a business model?
What type of industries typically use the agency-based business model?
What type of industries typically use the agency-based business model?
What key aspect does a business model help to identify?
What key aspect does a business model help to identify?
What is a characteristic of consulting firms like Mckinsey and BCG?
What is a characteristic of consulting firms like Mckinsey and BCG?
What essential question should a business model answer?
What essential question should a business model answer?
What does the process of creating a business model aim to simplify?
What does the process of creating a business model aim to simplify?
Which of these statements correctly reflects the relationship between a business model and a business plan?
Which of these statements correctly reflects the relationship between a business model and a business plan?
What is the primary purpose of a multi-brand business model?
What is the primary purpose of a multi-brand business model?
Which of the following companies exemplifies a vertically integrated supply chain business model?
Which of the following companies exemplifies a vertically integrated supply chain business model?
How does the e-commerce business model primarily benefit consumers?
How does the e-commerce business model primarily benefit consumers?
What key aspect does the drop-shipping business model emphasize?
What key aspect does the drop-shipping business model emphasize?
What is a significant drawback of a distribution based business model?
What is a significant drawback of a distribution based business model?
Which element is essential for the functionality of blockchain technology?
Which element is essential for the functionality of blockchain technology?
Which of these is NOT a characteristic of the e-commerce business model?
Which of these is NOT a characteristic of the e-commerce business model?
What would you expect from a company using a multi-brand strategy?
What would you expect from a company using a multi-brand strategy?
What is the primary advantage of the drop-shipping business model?
What is the primary advantage of the drop-shipping business model?
What characterizes a combination of chains and franchise business model?
What characterizes a combination of chains and franchise business model?
Which of the following correctly describes the data licensing business model?
Which of the following correctly describes the data licensing business model?
What is an example of a company that utilizes the attention merchant business model?
What is an example of a company that utilizes the attention merchant business model?
Which element is central to the high-touch business model?
Which element is central to the high-touch business model?
How do businesses like Kickstarter and Unilever utilize crowdsourcing?
How do businesses like Kickstarter and Unilever utilize crowdsourcing?
What type of businesses are often targeted in the enterprise business model?
What type of businesses are often targeted in the enterprise business model?
Which of the following platforms represents a successful example of the high-touch business model?
Which of the following platforms represents a successful example of the high-touch business model?
What is a significant benefit of the business model canvas in terms of representation?
What is a significant benefit of the business model canvas in terms of representation?
How does the business model canvas facilitate team collaboration during evaluations?
How does the business model canvas facilitate team collaboration during evaluations?
Which feature of the business model canvas helps teams maintain clarity during brainstorming sessions?
Which feature of the business model canvas helps teams maintain clarity during brainstorming sessions?
What aspect of the business model canvas contributes to its ease of circulation and shareability?
What aspect of the business model canvas contributes to its ease of circulation and shareability?
What advantage does understanding the relationship between the 9 blocks of the business model canvas provide?
What advantage does understanding the relationship between the 9 blocks of the business model canvas provide?
What is the primary focus of the quantitative category of value propositions?
What is the primary focus of the quantitative category of value propositions?
Which value proposition category is characterized by a close interaction between the customer and the company?
Which value proposition category is characterized by a close interaction between the customer and the company?
Which of the following best describes Self-Service in value propositions?
Which of the following best describes Self-Service in value propositions?
What element is NOT typically a part of the value proposition attributes?
What element is NOT typically a part of the value proposition attributes?
How can creating communities benefit a company in terms of value propositions?
How can creating communities benefit a company in terms of value propositions?
What is the first question an entrepreneur should ask when creating a product's value proposition?
What is the first question an entrepreneur should ask when creating a product's value proposition?
What do automated services in value propositions rely on?
What do automated services in value propositions rely on?
Which of the following attributes is LEAST likely to provide value in a value proposition?
Which of the following attributes is LEAST likely to provide value in a value proposition?
Flashcards
Hidden Revenue Model
Hidden Revenue Model
A business model where users don't pay directly for services, but revenue comes from other sources, like advertising.
Consulting Business Model
Consulting Business Model
A business model where expert services are offered and payment depends on project duration and client requirements.
Agency-based Business Model
Agency-based Business Model
Hiring an outside firm for specific tasks or projects.
High-Value Deal Model
High-Value Deal Model
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Social Enterprise Model
Social Enterprise Model
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TOMS Shoes Example
TOMS Shoes Example
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Example Consulting Firms
Example Consulting Firms
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Example of Hidden Revenue Model
Example of Hidden Revenue Model
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Business Model
Business Model
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Business Model Purpose
Business Model Purpose
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Customer Needs
Customer Needs
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Profit Generation
Profit Generation
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Value Creation
Value Creation
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Value Capture
Value Capture
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Business Plan
Business Plan
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Customer Value
Customer Value
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Multi-brand business model
Multi-brand business model
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E-commerce business model
E-commerce business model
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Distribution-based business model
Distribution-based business model
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Drop-shipping business model
Drop-shipping business model
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Vertically integrated supply chain
Vertically integrated supply chain
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Blockchain Technology
Blockchain Technology
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Decentralized Network Systems
Decentralized Network Systems
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Economies of Scale
Economies of Scale
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Enterprise Business Model
Enterprise Business Model
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Data Licensing Business Model
Data Licensing Business Model
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Attention Merchant Business Model
Attention Merchant Business Model
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Combination of Chains and Franchise
Combination of Chains and Franchise
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Crowdsourcing Models (Example)
Crowdsourcing Models (Example)
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High-Touch Business Model
High-Touch Business Model
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Niche E-commerce
Niche E-commerce
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Visual Thinking
Visual Thinking
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Iterate Quickly
Iterate Quickly
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Relationship Between Blocks
Relationship Between Blocks
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Spot Opportunities
Spot Opportunities
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Short and Succinct
Short and Succinct
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Value Propositions (VP)
Value Propositions (VP)
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Quantitative VP
Quantitative VP
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Qualitative VP
Qualitative VP
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Dedicated Personal Assistance
Dedicated Personal Assistance
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Self-Service
Self-Service
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Automated Services
Automated Services
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Communities (VP)
Communities (VP)
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Value Proposition Creation
Value Proposition Creation
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Study Notes
Business Models
- A business model describes how an organization creates, delivers, and captures value.
- Key components include target customers, market analysis, organizational strengths/weaknesses, product details, and sales strategies.
- A successful model generates more revenue than expenses.
Business Model vs. Business Plan
- A business model is the fundamental idea and operational structure.
- A business plan provides detailed strategy and financial projections.
- The business model is the foundation upon which the business plan is built.
Revenue Models
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Franchise: Franchisors license resources and brand for franchisees to sell. (e.g., McDonald's)
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Multi-Sided Platform: Companies offer services to multiple groups, creating value for each side. (e.g., LinkedIn)
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Cash Machine: Focuses on quickly converting cash to goods and then back to cash. (e.g., Amazon)
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Freemium: Offers free services with optional paid upgrades. (e.g., Zoom)
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Subscription: Fixed fees for recurring services or content access. (e.g., Netflix)
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Peer-to-Peer: Connects two parties, with the company acting as a middleman. (e.g., Airbnb)
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One-for-One: Businesses address social issues through profit-making initiatives. (e.g., TOMS Shoes)
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Hidden Revenue: Company earns revenue with no direct user payment for services. (e.g., Google)
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Razor and Blade: One low-priced item that requires expensive replacement components. (e.g., Printers)
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Reverse Razor and Blade: Low-priced items to drive purchases of higher-cost items. (e.g., Apple devices and apps)
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Direct Sales: Products sold directly to customers, often personal interaction.
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Affiliate Marketing: Making money by promoting third-party products or services.
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Consulting: Providing expertise with fees or percentage-based compensation.
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Agency-Based: Project-based work where companies lack specialized skills internally.
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Many other models exist (e.g., Social enterprise, Family-owned, etc.)
Business Model Canvas
- A tool for visualizing a business model's components.
- Includes nine building blocks, grouped into customer, offer, infrastructure, & financial viability categories.
- Useful for developing or evaluating existing business strategies.
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