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Published bySheila Daniel Modified over 8 years ago
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Acid Tests
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Switching costs How much do switching costs prevent your customers from churning ? The capacity of the IPod is an element strengthening the captivity of the customer: It was a business model strategy to get customers to copy all their music into iTunes and their iPod, which would make it more difficult for them to switch to competing digital music. Source : Alexander Osterwalder
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Recurring income Is income going to depend on a systematic commercial action(share) or we are going to generate income effortlessly additional? Capsule Nespresso represents a flow of additional effortlessly commercial income, when the customer has the equipment Source : Alexander Osterwalder
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Do you earn before you spend ? The investment is realized by stockholders' equity or by customers The book Business Model was sold before having been written to cover the costs of conception Source : Alexander Osterwalder
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Is your business model based on a game changing cost structure ? Cutting costs is a long practiced sport in business. Some business models, however, go beyond cost cutting by creating value based on a totally different cost structure. Skype proposes free long-distance calls because, Skype’s model is based on the economics of a software company, while a telecom provider’s model is based on the economics of a network company. Source : Alexander Osterwalder
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How much do you get others to do the work ? What could be more powerful than getting others to do the work while you earn the money ? The value of Facebook rests on the users’s contribution Source : Alexander Osterwalder
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Scalability With which speed and facilitated the growth can be realized without earthing up against structural costs (infrastructure, customer service) Zenga and Cityville with Facebook Source : Alexander Osterwalder
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