View
213
Download
0
Category
Preview:
Citation preview
Strategic PlanningBusiness Model Canvas (BMC)
2:20minute cliphttp://www.youtube.com/watch?v=QoAOzMTLP5s#at=4
Business Models on Canvas
• Unbundling Business Models (3 in 1 model)– Customer relations, – Infrastructure management,– Product innovation.– Example: Private Banking, Telecommunications.
• Relies on outsourcing non-core functions.– Eg Telecommunications
• Infrastructure to equipment makers • Product innovation to smaller creative agencies• CRM – their core business.
Business Models on Canvas
• The Long Tail– Selling less of more (online/direct channel).– Shifts the focus from product to service.
– KP/ KA/ KR now all about platform (websites with full &updating functionality) rather than inventory.
Business Models on Canvas
• Multi-sided Models– (Multi sided model brings two interacting customer
populations together and extracts value from that.• Eg newspaper readers / advertisers
– Value of interaction increases with network effect.– Combines with freemium model.
• One VP for each segment/ C$&R$ quite different (asymmetric) /KA&KP about platform.
Business Models on Canvas
• Freemium– (basics for free, pay for add-ons)• Eg Economist magazine online – 3 articles/month for free.• Skype VOIP phones (freemium)/ Skypeout (premium)
• Freemium is a numbers game– A small customer base paying for premium– A big customer base not paying for freemium.– Important number is conversion rate from• Freemium premium
Business Models on Canvas (cont)
• Freemium– (basics for free, pay for add-ons)
• VP of two parts (basic + add-ons) / R$ from add-ons cover C$ of VP.
• Often a professional /amateur split in market
Business Models on Canvas
• Bait & Hook– Making money from after sales service• Mobile phones (free handset(bait) ‘with a plan’ (hook))• Gilette Razors (cheap handle(bait) multiple blade sales (hook))
• VP of two parts / CS buys one handle - locked in for blade repeats / R$ from blades subsidised C$ of handles.
Business Models on Canvas
• Manufacturing - raw material into final products.
• KR&KA linking to C$• KP link to VP, R$• CH link to CS
Business Models on Canvas
• Retail - products for sale to public at central location.– The Warehouse
• CH all important.• Expertise in CR, CS link to VP.• KA,KR logistics• KP suppliers
Business Models on Canvas
• Franchising – business system and support for sale.
• Multi sided model – VP to franchisees, and to CS– KR,KA business support at two levels.– KP (franchise network), C$ control.
Business Models on Canvas
• Subscription – customers sign on to regular fees.– Multisided model (?) user plus advertiser– Magazines, websites.
• R$ ‘cashflow’ model.• CH important, often more than one• C$ control (limited R$)• VP may serve several CS
Business Models on Canvas
• Professional Services – specialised skill sold in time units.– Lawyer, dentist
• KP, KA, KR all drive VP (specialty/expertise)• CH usually one-on-one (implications for R$)
Business Models on Canvas
• Licensing – Intellectual property used by others for fees.– Leased equipment,
• KP,KR about support for users/product• VP based on exclusivity
Summarising Strategy Prospector◦ Seeks new markets, innovator, fast changer in response to
pressures, first mover. Defender◦ Seeks security & stability of limited range of products.
Analyser◦ Between Prospector & Defender, ‘smart second’, picks
winners Reactor◦ Risk averse, no real strategy, changes only when necessary.
Strategies for declining markets
o Harvesto Maximize short-term cash flow
o Maintenanceo Maintain market share for the short-term
o Profitable survivoro Increase share of the declining market
o Nicheo Strengthen share position in one or a few
segments
More . .
• "An outstanding strategy weakly executed will always be trumped by a weak strategy with outstanding execution."
• Aggressive strategy- hit their sweet spot.
Recommended