Business model development

A Presentation on

Developing an Effective Business model

A combined effort ofSERIAL NO. NAME OF MEMBERS ID. NO.

01. FAHIM HASSAN 19-016

02. MD. SADID UDDIN 19-020

03. MD. HAFIZUR RAHMAN 19-022

04. MD. SHAHALAM KHAN 19-026

05. TANVEER AL JAMEE 19-104

Discussion at a glance

Business model

Importance of business model

Emergence of business model

Potential flaws of business model

Components of business model

What is a model?

A model

A plan or Diagram

Used to make somethingUsed to describe

something

What is a business model?

How it competes

Utilise resources

Structures Relationship

Customer interface

Value generation

Business model: an example

Importance of a business model

Serves as an ongoing extension of feasibility analysis

Focuses attention on how all the elements of a

business fit together and constitute a working whole.

Describes why the network of participants needed to

make a business idea viable are willing to work

together.

Articulates a company’s core logic to all stakeholders.

Emergence of a business model

• The Value Chain

• The string of activities that moves a product from the raw

material stage, through manufacturing and distribution, and

ultimately to the end user.

• Developed by an academic researcher

• Used to identify opportunities

• Explains how business models emerge and develop

• Consists of primary activities and support activities

Emergence of a business model

• Primary activities

• Support activitiesFirm

Infrastructure

Human Resource Manage

ment

Technology

Development

Resource

Procurement

Inbound Logistics

Operations

Outbound Logistics

Marketing and

Sales

Service

Potential flaws of a business modelA complete misread of the customer

1

Unsound economics

2

Components of Business

Model

Core Strategy

Strategic Resources

Partnership network

Customer interface

Mission statement Product/market scope

Basis for differentiation

Core Strategy

Strategic Resources

Core competencies

Strategic assets

Core competency

Core Competency

A resource or capability

Works as a competitive advantage

Difficult to imitate

Allows to differentiate

Creates unique value

Helps to grow

Establishes strong

position

Strategic assets

Strategic assets

Plant & equipment

Location

BrandsPatents

Customer data

Qualified staff

Distinctive partnership

Partnership network

Partnership Network

SuppliersKey relationships

SuppliersTraditional view

1

Today’s view

2

Key relationships

Key relationships

Joint venture

Network

Consortia

Strategic alliance

Trade associations

Customer interface

Customer Interface

Target market

Fulfillment and

support

Pricing structure

Target market

Limited group of individuals or businesses

Firms go after or tries to appeal

Affects everything

Fulfillment and support

FulfillmentLicensing the product to existing

companies

Manufacturing the product by itself

Partnering with a company

Pricing structure

Flat rate

Hourly rateFreemium

Any Queries….???