Business Strategy - Business Model, 4th Edition

Fourth BUSINESS Edition Strategy Development Application Chapter 7 Framing the Business Model Gary Bissonette © 2024 McGraw Hill Limited  BUSINESS...

Fourth BUSINESS Edition Strategy Development Application Chapter 7 Framing the Business Model Gary Bissonette © 2024 McGraw Hill Limited  BUSINESS Fourth Edition Strategy Development Application Learning Objectives 1. An understanding of the key components that make up a business model 2. Recognition of the process associated with determining the overall effectiveness of a business model 3. Knowledge of the critical insights to be derived from business model analysis and the risks of stagnation 4. Exposure to understanding the core ways in which advantage can be built into the business © 2024 McGraw Hill Limited model 7-2  BUSINESS Fourth Edition Strategy Development Application Business Model Composition, 1 © 2024 McGraw Hill Limited 7-3  BUSINESS Fourth Edition Strategy Development Application Business Model Composition, 2 Market-centric side - Assess potential market opportunities - Develop and communicate a market position Company-centric side (the business system) - Activities needed to develop and deliver goods & services to the market - Resources required - Partners © 2024 McGraw Hill Limited involved 7-4  BUSINESS Fourth Edition Strategy Development Application Business Model Overview © 2024 McGraw Hill Limited 7-5  BUSINESS Fourth Edition Strategy Development Application Market-Centric Business Model © 2024 McGraw Hill Limited 7-6  BUSINESS Fourth Edition Strategy Development Application Company-Centric side of the Business Model © 2024 McGraw Hill Limited 7-7  BUSINESS Fourth Edition Strategy Development Business IN ACTION Application Amazon - Building Out a Successful Business Model Changed the retail landscape Disrupted bricks and mortar Omnichannel approach Customer-centric approach © 2024 McGraw Hill Limited 7-8  BUSINESS Fourth Edition Strategy Assessing the Development Business Application Model © 2024 McGraw Hill Limited 7-9  BUSINESS Fourth Edition Strategy Development Application Conducting the Analysis © 2024 McGraw Hill Limited 7-10  BUSINESS Fourth Edition Strategy Development Application Value Logic - Example © 2024 McGraw Hill Limited 7-11  BUSINESS Fourth Edition Strategy Development Application Business IN ACTION - Spotify “Freemium to premium” customer acquisition approach Impressive revenue growth, yet challenged by profit generation New rules to improve ARPU © 2024 McGraw Hill Limited 7-12  BUSINESS Fourth Edition Strategy Development Application The Risk of Business Model Stagnation Active inertia - being glued to present business mechanics Ignoring new entrants Outdated beliefs about customer’s value perspective Controlling costs is not the only way to effect profits Complacent about technology Consumer behaviour changes © 2024 McGraw Hill Limited 7-13  BUSINESS Fourth Edition Strategy Development Application Core Business Model Outcomes What Drives Business Model Advantage? © 2024 McGraw Hill Limited 7-14  BUSINESS Fourth Edition Strategy Development Application Potential Areas for Sustainable Advantage © 2024 McGraw Hill Limited 7-15  BUSINESS Fourth Edition Strategy Development Application The Apple advantage? Its business model © 2024 McGraw Hill Limited 7-16  BUSINESS Fourth Edition Strategy Management Development Reflection Application - Successful Business Models © 2024 McGraw Hill Limited 7-17  BUSINESS Fourth Edition Strategy Development Application Chapter Summary The Business Model Framework  The Market-Centric Side of the Business Model  The Company-Centric Side of the Business Model  The Full Business Model Assessing The Business Model  Conducting the Analysis  Critical Insights Relating to Business Model  Analysis The Risk of Business Model Stagnation Core Ways of Building Advantage into the Business Model  Building Advantage into the Business Model Management Reflection—Successful Business © 2024 McGraw Hill Limited 7-18