TODAY’S CLASS 5:00-6:15 Where are we now? Business Models

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Presentation transcript:

TODAY’S CLASS 5:00-6:15 Where are we now? Business Models 6:15-6:30 Break 6:30-7:50 Group Meeting

Homework due next session Prepare Case: Priceline Webhouse Club Read two articles: “Beyond the Exchange: The Future of B2B” “Internet Pioneers: We have lift-off”

Last Class: Framing Market Opportunity (i.e. where will the business compete) Today: Business Models (i.e. how will the business win)

Consumer Decision Process Disposal Loyalty Satisfaction Purchase Decision Evaluation of Alternatives Information Search Problem - Recognition Pre-Purchase Purchase Post-Purchase

Components of a Business Model Value Cluster Marketspace Offering Resource System Financial Model

Components of a Business Model Value Cluster Marketspace Offering Resource System Financial Model

Egg Diagram for 1-800-flowers.com Gift reminder service Holiday specials Everyday celebrations suggestions Special occasion suggestions Ideas and Information “Care and handling” “Do it yourself” Special events and educational workshops held at stores Floral ideas Garden ideas Home ideas Gift ideas Gourmet ideas Store locator Recommendations by budget Bestsellers Flower / Gift Decision Process Need Recognition Product Offering Gift Recommendations Education on Flowers and Decoration Search for Ideas and Offerings Gift guru Favorite gifts Gift frequency Gift impossible Gift baskets Corporate gift services Post-Sale Support Order receipt e-mail eQ&A online customer service FAQ Customer service inquiry form Post-Sale Support and Perks Evaluation of Alternatives Product price Product picture Product description Delivery information Delivery availability Perks Miles earned with flower purchases Free gifts Discounts at AOL & BN.com with flower purchases Member specials Message Selection Purchase Decision Shopping basket E-commerce transaction Special shopping features Delivery outside US 1-800-lasfloras.com Gizmo fully-animated greeting cards Physical cards in gifts

1-800-flowers.com Resource System Address Book BloomNet Network Third-Party Contractors Strong Distribution Network Gift Recommend- ations Fulfillment Center Stores Online Gift Center Gift Reminder Broad Assortment of Gifts High Quality of Flowers Rich Content Personalization Capabilities Popular Website Garden Works Integrated Partner Offers Telephone 3,000 Affiliates Plow & Hearth Online Customer Service Widespread, Easy Access Great Foods Multiple Contact Points Franchise Stores Catalog Technology Strong Brand Name Wide Reach to Customers Customer Service Centers = Core Benefits Snap Starmedia = Activities & assets Integrated online offline Systems MSN AOL = Capabilities

Sawhney and Kaplan — B2B Models Vertical Hubs Paper Chemicals Plastics Steel Logistics Management Media Buying Advertising Energy Management Functional Hubs Source: Adopted from Business 2.0, September 1999, page 88

Sources of Content Origination RJS Model Summary Sources of Content Origination Single Brand Multiple Brands Supply Side Demand Side Hybrid Integrator (Cisco.com) Hybrid Aggregator (Amazon.com) Forward-Integrated Producer (Walmart.com) Supply-Side Aggregator (Surplusdirect.com) Demand-Side Aggregator (Accompany.com) Backward Integrated User (Dellonline.com) - B2B Focus of Strategy

Alternative Shareholder Value Model