MBG7509 – Consulting Action Project Pair Assignment September 2016

Summary of Key Objectives Assess your understanding of what is a business model innovation and the principles behind it

Instructions

Research one business model innovation and understand the insights Instruction Research one business model innovation and understand the insights Pair up. Select an industry from the following list (one per pair – can’t be repeated) Identify as much as different business models used by each of the competitors (minimum 5 extra points for more than 5) Explain why the business model leader is winning Identify a new and different business model as a result of the new economy You may do primary research by contacting companies to validate your findings You may use Google and other research databases as secondary research Fill out the template slide provided in this PowerPoint Submit the PowerPoint file to the professor Select and industry Identify five different business models used by each of the competitors Explain why the business model leader is winning Identify a new and different business model as a result of the new economy How do you capture the widest market and keep them loyal to you the longest time List of industry so they don’t select the same Four columns of competitors names What is the business model Example – emerging model p&g branding and charges 3k Cars Competitor 1 sales cars Banking loan Rents cars

Business Model description Company Name Company: INDUSTRY: Company 1: __________ Business Model description Widest Market How is the company getting more customer to buy it? Shortest time How is the company getting more customers interested faster? Biggest share of wallet How is the company getting a bigger portion the customer’s wallet? BUSINESS MODEL Industry Leader

Business Model description Company Name Company: INDUSTRY: Company 2: __________ Business Model description Widest Market How is the company getting more customer to buy it? Shortest time How is the company getting more customers interested faster? Biggest share of wallet How is the company getting a bigger portion the customer’s wallet? BUSINESS MODEL

Business Model description Company Name Company: INDUSTRY: Company 3: __________ Business Model description Widest Market How is the company getting more customer to buy it? Shortest time How is the company getting more customers interested faster? Biggest share of wallet How is the company getting a bigger portion the customer’s wallet? BUSINESS MODEL

Business Model description Company Name Company: INDUSTRY: Company 4: __________ Business Model description Widest Market How is the company getting more customer to buy it? Shortest time How is the company getting more customers interested faster? Biggest share of wallet How is the company getting a bigger portion the customer’s wallet? BUSINESS MODEL

Business Model description Company Name Company: INDUSTRY: Company 5: __________ Business Model description Widest Market How is the company getting more customer to buy it? Shortest time How is the company getting more customers interested faster? Biggest share of wallet How is the company getting a bigger portion the customer’s wallet? BUSINESS MODEL

Company: INDUSTRY: Industry Leader: __________ Company Name Company: INDUSTRY: Industry Leader: __________ The company ______ is winning because... Define a new BUSINESS MODEL as a result of the New Economy Widest Market Shortest time Biggest share of wallet How will you do to get more customer to buy it? How can you do to get more customers interested faster? How can you do to get a bigger portion of your customer’s wallet?

Example Business Models

Examples of Business Model Business Model Point of View Examples of Business Model Lock-In The “Lock-in” Profit Model makes the customer dependent on a vendor for products and services Rewards of Scale The Rewards of Scale Profit Model uses cost advantages obtained by business expansion Rewards of Scope The Rewards of Scope Profit Model reduces cost by increasing or decreasing the scope of distribution or marketing of different types of products or services Thought Leadership The Thought Leadership Profit Model builds on innovative ways to run the business to increase revenue or decrease cost Competitive Position The Competitive Position Profit Model analyzes the market and use different methods to beat competitors

Other Examples of Business Model Business Model Point of View Other Examples of Business Model Co-Create Right Size Expensive Refillable Intel Inside Right serve - by matching the level of need with the right service, companies create offerings to address brand new markets. Co-create - some companies have generated innovation breakthroughs by providing infrastructure, simple governance, and individual freedom to create. Pricey refillables - a large set of innovation breakthroughs follow this model of charging very little or giving away the product, and making money from selling the refills. Intel Inside - many innovations are built around becoming more visible to the end consumer, which we termed as Intel inside.

Research Assignment Grading Criteria Guidelines Total Score (15) = Score Description Comment On Time Submission (3 points) 3 The student submitted the assignment on time Submitted late or didn’t submit Insightfulness (4 points) 4 The business model was insightful. The student was able to extract the AHA of the business model i.e. he/she has deeply thought to obtain a unique perspective or understanding of why it is business model innovation some sections are insightful, while others are not 2 not insightful i.e. student stated something that is obvious, superficial, shallow, trite. Didn’t submit Completeness The student provided complete and accurate information about the business model innovation in the template provided. The story can easily be understood without any additional background information or research. Some sections are complete, correct and easily understood, while others are not Incomplete, inaccurate and difficult to understand. Need to do research to understand the story Overall / Grammar The student wrote a coherent, logical and clear story with excellent grammatical structure Some sections are clear, while others are not storyline not clear and coherent; poor use of grammar