Podcast
Questions and Answers
What is a business model primarily used for?
What is a business model primarily used for?
- To analyze stock market trends
- To outline a firm's strategy for creating and delivering value (correct)
- To determine employee salary structures
- To establish marketing tactics
Which of the following is a characteristic of standard business models?
Which of the following is a characteristic of standard business models?
- They are the only type of business model recognized
- They are exclusively used by new startups
- They depict existing strategies firms can use (correct)
- They guarantee a perfect formula for success
What does the term 'churn' refer to in a subscription business model?
What does the term 'churn' refer to in a subscription business model?
- The number of subscribers lost each month (correct)
- The average duration of a subscription
- The total revenue generated each month
- The increase in new subscriptions within a month
What is a distinctive feature of disruptive business models?
What is a distinctive feature of disruptive business models?
Why is it important for a firm's business model to consider the participation of others?
Why is it important for a firm's business model to consider the participation of others?
Which statement accurately reflects the nature of disruptive business models?
Which statement accurately reflects the nature of disruptive business models?
What must still be assessed in the development of a business model?
What must still be assessed in the development of a business model?
What defines a standard business model?
What defines a standard business model?
What happens to industry attractiveness when the threat of substitutes is high?
What happens to industry attractiveness when the threat of substitutes is high?
Which of the following is NOT a barrier to entry in an industry?
Which of the following is NOT a barrier to entry in an industry?
In what scenario is rivalry among existing firms likely to decrease?
In what scenario is rivalry among existing firms likely to decrease?
How does low bargaining power of suppliers affect an industry?
How does low bargaining power of suppliers affect an industry?
Which of the following factors does NOT impact the bargaining power of buyers?
Which of the following factors does NOT impact the bargaining power of buyers?
What is a consequence of high rivalry among existing firms?
What is a consequence of high rivalry among existing firms?
Which factor increases the threat of new entrants into an industry?
Which factor increases the threat of new entrants into an industry?
What effect does high buyer group concentration have on bargaining power?
What effect does high buyer group concentration have on bargaining power?
Which of the following best defines trade secrets?
Which of the following best defines trade secrets?
What is a common cause of trade secret disputes?
What is a common cause of trade secret disputes?
What are the two primary reasons for conducting an intellectual property audit?
What are the two primary reasons for conducting an intellectual property audit?
What is considered a method to protect trade secrets?
What is considered a method to protect trade secrets?
Which law primarily governs trade secret protection?
Which law primarily governs trade secret protection?
What is the primary advantage of having a heterogeneous team?
What is the primary advantage of having a heterogeneous team?
Which is NOT a responsibility of the board of directors?
Which is NOT a responsibility of the board of directors?
What role does a board of advisors primarily serve?
What role does a board of advisors primarily serve?
Why are well-known board members beneficial for a new firm?
Why are well-known board members beneficial for a new firm?
What should be considered when forming a board of advisors?
What should be considered when forming a board of advisors?
How do consultants benefit new ventures?
How do consultants benefit new ventures?
What is a skill profile used for in new ventures?
What is a skill profile used for in new ventures?
What kind of directors are included in a board of directors?
What kind of directors are included in a board of directors?
What is a potential downside of team conflict?
What is a potential downside of team conflict?
Which of the following is true about lenders and investors?
Which of the following is true about lenders and investors?
What does the term 'intellectual property' refer to?
What does the term 'intellectual property' refer to?
Which of the following is NOT a type of patent?
Which of the following is NOT a type of patent?
How long does a utility patent last?
How long does a utility patent last?
Which of the following statements about patent infringement is true?
Which of the following statements about patent infringement is true?
Who is eligible to apply for a patent?
Who is eligible to apply for a patent?
What is the primary purpose of intellectual property laws?
What is the primary purpose of intellectual property laws?
Which type of patent protects the ornamental design of a manufactured product?
Which type of patent protects the ornamental design of a manufactured product?
What does 'patent pending' indicate?
What does 'patent pending' indicate?
Study Notes
Business Model and Importance
- A business model is a company's plan for creating, delivering, and capturing value for its stakeholders.
- A business model is foundational to a firm's success.
- It describes the core aspects of a company's business.
Standard Business Models
- Standard business models are commonly used by existing firms and startups.
- They depict established plans for creating, delivering, and capturing value.
- There are several different types of standard business models with their own advantages and disadvantages.
- For example, subscription models offer recurring revenue but face challenges with churn (subscribers leaving).
Disruptive Business Models
- Disruptive business models are rare models that significantly alter the way businesses operate within an industry or niche.
- Examples include companies like Dell, Google, Salesforce.com, and Uber.
Five Competitive Forces Model
- This model identifies the influences that shape industry profitability.
- It consists of five forces:
- Threat of substitutes: When substitute products can easily replace a company’s product, the threat of substitutes is high, and the power of the company is weak.
- Threat of new entrants: High barriers to entry, like significant capital requirements, reduce competition and make the industry more attractive.
- Rivalry among existing firms: Intense competition can drive prices below costs, leading to losses for all involved.
- Bargaining power of suppliers: A company has less power when suppliers have more leverage, for example, when suppliers are concentrated or offer unique products.
- Bargaining power of buyers: Buyers have more power when they are concentrated or can easily switch to another company.
Intellectual Property and its Importance
- Intellectual Property (IP) refers to intangible creations of human intellect which have market value.
- It includes patents, trademarks, copyrights, and trade secrets.
- IP laws promote innovation by granting creators exclusive rights to their creations.
Patents
- A patent is a government grant allowing the inventor exclusive rights to make, sell, or use their invention for a specified period.
- There are different types of patents including utility, design, and plant patents.
- A patent infringement occurs when someone uses another's patented invention without permission.
Copyright
- Copyright protects original works of authorship, including literary, dramatic, musical, artistic, and certain other intellectual works.
- The goal of copyright is to encourage new creations by giving creators economic and moral rights.
- Copyright infringement occurs when a person or company uses copyrighted materials without permission or without properly attributing the ownership of the work.
- Fair use allows for limited use of copyrighted material for purposes like criticism, commentary, news reporting, teaching, scholarship, and research.
Trade Secrets
- Trade secrets are confidential information that gives a company a competitive edge in the marketplace.
- Examples include marketing plans, employee rosters, and confidential customer information.
- Trade secret protection relies on a patchwork of state laws, including the Economic Espionage Act and the Uniform Trade Secrets Act.
Importance of Intellectual Property Audits
- A IP audit helps a company identify and evaluate its intellectual property assets.
- It is essential for understanding:
- What intellectual property a company currently owns
- Potential IP gaps that need to be addressed.
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Description
This quiz explores the fundamentals of business models, including standard and disruptive types. Learn how these models impact a company's strategy and value creation. Test your knowledge on competitive forces that shape industries.
