Indigo's Virtuous Cycles Quiz

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What determines the velocity of a business model according to the text?

The number of customers acquired

The variety of products offered

The number of host partners on the platform

The speed at which profits are realized compared to competitors (correct)

How does the sustainability of Indigo's low-cost business model depend on its virtuous cycles?

By ensuring better payment terms for hosts

By maintaining large customer volume and low fares (correct)

By offering a wider variety of travel experiences

By increasing the number of sellers on the platform

What does a higher number of virtuous cycles in a firm's business model lead to, according to the text?

Higher profits due to lower operating costs

Increased competition from rivals

Improved customer experience (correct)

Lower platform management costs

What is one way in which Amazon sustains its multiple virtuous cycles/value loops, as mentioned in the text?

Offering lower prices to attract more sellers and customers Signup and view all the answers

What helps sustain the value creation of a firm over a longer period of time?

Large customer volume and low fares Signup and view all the answers

What do business models depict?

The value creation and value capture logic of a firm Signup and view all the answers

What do assets refer to in the context of business models?

Tangible resources that companies employ to create value Signup and view all the answers

What does governance determine in the context of business models?

Decision-making rights for the firm’s policies and assets Signup and view all the answers

What are the typical consequences of the choices made by a firm in its business model?

Growth in market share and revenue Signup and view all the answers

What kind of choices does a firm make related to its operations, as mentioned in the text?

Policies, assets, and governance decisions Signup and view all the answers

At what level are business models analyzed?

At a disaggregate level using only cost and value drivers Signup and view all the answers

What do business models represent?

A firm’s strategic decision-making process over time Signup and view all the answers

Why is business model analysis performed?

To evaluate the strategic decision-making process of a firm Signup and view all the answers

What is the primary focus of business model analysis?

The strategic decision-making process over time Signup and view all the answers

What defines the dynamic nature of business models?

The strategic choices and consequences that happen over time Signup and view all the answers

Indigo's Virtuous Cycles Quiz

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