MODULE 26.11 BUSINESS MODEL FEATURES AND TYPES

Apuntes

MODULE 26.1: BUSINESS MODEL FEATURES AND TYPES LOS 26.a: Describe key features of business models A successful firm must provide a product or service, find customers, deliver the product or service, and make a profit. A business model explains how a firm either does or proposes to do this. “How we will provide it, sell it, and make a profit” is clearly an oversimplification, but this is the essence of a business model. In practice, the answers to these questions have many facets. Here, we present a framework that incorporates some of the complexities involved. It involves answering the questions of who, what, how, where, and how much. A business model should do the following: ■ **Identify the firm’s potential customers (who):** How they are acquired, the cost of customer acquisition, and how the company will monitor and maintain customer satisfaction. Potential customers can be defined in innumerable ways, ranging from every consumer within a geographic area to ownership or, in the case of a weapon, the home country’s military. This characterization of customer groups is called segmentation. ■ **Describe the key assets and suppliers of the firm (who):** Key assets may ...