1. REVISITING YOUR BUSINESS MODEL Dr. Dawne Martin MKTG 241 April 19, 2012

2. Build Your Business Model A Business Model Describes the rationale of how an organization creates, delivers and captures value Customer Segment – What market segments should be served? Value Proposition – What customer problems will be solved or needs to be satisfied? Newness- Design Performance - Brand/Status Customization- Price Getting the job done- Cost reductions Risk reduction- Accessibility Convenience/Usability Adapted from: Alexander Osterwalder & Yves Pigneur, Business Model Generation, John Wiley & Sons, 2010.

3. Build Your Business Model Channels – What value propositions are delivered to customers through communications, distribution and sales channels? Awareness, Evaluation, Purchase, Delivery, After Sales Sales Force- Web Sales Own Stores- Partner Stores Wholesalers Customer Relationship – How will you establish and maintain relationships with each customer segment? Personal assistance- Dedicated personal assistance Self-service- Automated services Communities- Co-creation

4. Build Your Business Model Revenue Streams– How will revenue be generated from value propositions offered to customers? Asset Sale- User fees Subscription fees- Lending/renting Licensing- Brokerage fees Advertising Key Resources – What assets are required to offer & delivery previous elements? Physical- Intellectual Human- Financial

5. Build Your Business Model Key Activities – What activities are required to create previous elements? Production- Problem solving Platform/network Key Partnerships – What activities should be outsourced or acquired from outside the enterprise? Optimization & economies of scale Reduction of risk & uncertainty Acquisition of particular resources & activities Cost Structure – What are the primary costs associated with your business model? Cost driven- Value-driven Fixed costs- Variable-costs Economies of scale- Economies of scope

6. Key Partners The Business Model Canvas: Key Activities Key Resources Value Proposition Customer Relationships Customer Segments Cost Structure Revenue Streams Channels