Business model tbs 2012v3 ppt

Entrepreneurship@TBS 2012

Wai Chamornmarn

Business model


Business idea




Business Concept


Business Concept

Product Innovation

Customer Intimacy

Low Price

Technology

Management

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Opportunity


Go or No-Go?

Quantify and MAXimize Quantify and MINimize

Vernon’s Razor (ต่อ)

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Uncover Opportunity Nucleus – Increase customer satisfaction – Create a new experience

– Uncovering •  unmet need •  underserved needs


Two Generic “Value types” – Trapped Value

•  More efficient markets •  More efficient value systems •  Ease of access •  Disrupt current pricing power

– New-To-The-World Value •  Customize offerings •  Extend reach and access •  Build community •  Enable collaboration •  Introduce new functionality or experience


Revealing Unmet or Underserved Needs What are the steps in the Customer Decision Process: l What is the ideal experience? How does reality differ? l What are the key frustration points? l What compensating behaviors do we see? l How/why is the customer successful? l Are their groups with underserved needs?


Profit pattern


The Value Chain

13 Source: Walters (2002)


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Profit Zones / Profit Pools

Source: Adapted from Walters (2002), Gadiesh and Gilbert (1998) and Slywotzky and Morrison (1997)


Prof

it

0

Time Volume

Pric

e

Base Business

Buyers Sellers

Price

Cost

$/U

nit

Post-Launch

Q2 Q4 Q6 Q8 Q10

Revenue

Cost

$/Pr

ojec

t

Project Type

Key Asset

Other Forms

Base Business

Spin-Outs

Customer Solutions Profit Product Pyramid Profit Multicomponent Profit Switchboard Profit

Time Profit Blockbuster Profit Profit Multiplier Model Entrepreneurial Profit

Other Components

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Entrepreneurship@TBS 2012 "

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Business model


Which would you prefer?

Business Design “A”

$10 billion

$50 million

Business Design “B”

$8 billion

$300 million

Revenue

Profit


business design

Customer Selection

Profit Model

Strategic Control

Today Next

Scope

Unique Value Proposition


Business Design Example: Airline Industry Within a particular industry, companies may pursue very different Business Designs

United Southwest •  International & domestic; coach,

business and first-class travelers • Broad network & loyalty program

Customer Selection & Value Proposition

• Domestic travelers; coach only

•  Low-cost, no-frills w/ highly consistent customer service

•  Tiered fares based on class, flexibility

• Ancillary revenues

Value Capture/ Profit Model

• Every-day low prices • High asset utilization

• Sophisticated IT •  International Sales & Regulatory

capability

Organizational Systems • Cultural emphasis on Southwest way

• Global hub-and-spoke route system

Scope • US-only point-to-point route system

• Controlled-access airports in key geos

•  Loyal frequent fliers

Strategic Control •  Lowest costs • High frequency route coverage

Southwest Next?

•  $10BB •  $16BB Revenue

•  $4.7BB Market Cap •  $10BB


Business Model

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Value

Proposition

Partner

Network

Core

Capacities

Value

Configuration

Customer

Relationship

Distribution

Channel Customer Segment

Cost

Structure

Revenue

Streams

Success / Failure


Example business models over the years

•  The open business model •  The subscription business model •  The razor and blades business model

(bait and hook) •  The pyramid scheme business model •  The

multi-level marketing business model •  The network effects business model •  The monopolistic business model •  The cutting out the middleman model •  The auction business model •  The online auction business model •  The bricks and clicks business model

•  The loyalty business models •  The Collective business models •  The

industrialization of services business model

•  The servitization of products business model

•  The low-cost carrier business model •  The online content business model •  The freemium business model •  The premium business model •  The direct sales model •  The professional open-source model •  Various distribution business models

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Value proposition designer












Business model canvas







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Documents

Business model tbs 2012v3 ppt