Prof	
  Shivananda	
  R	
  Koteshwar	
  
Director,	
  The	
  Amaatra	
  Academy	
  
shivoo@pes.edu	
  /	
  Facebook:	
  sh...
  For	
   your	
   idea/company,	
   write	
   down	
   the	
  
business	
   9	
   essential	
   pieces	
   of	
   a	
   ...
  http://www.slideshare.net/shivoo.koteshwar/
how-­‐to-­‐strengthen-­‐your-­‐business-­‐model	
  	
  
  Mass	
  Market	
  
  Consumer	
  Electronics	
  
  Niche	
  Market	
  
  Car	
   part	
   manufacturers	
   depend	
...
  Newness	
  
  Cellphone	
  companies	
  
  Performance	
  
  Computers	
  
  Customization	
  
  Getting	
  the	
 ...
  Partner	
  or	
  own	
  
  Indirect	
  or	
  direct	
  
  Direct:	
  Own	
  Stores,	
  Web	
  stores,	
  Sales	
  for...
  Personal	
  Assistance	
  
  May	
  happen	
  onsite	
  at	
  the	
  point	
  of	
  sale,	
  through	
  call	
  center...
  Asset	
  Sale	
  
  Usage	
  Fee	
  
  Subscription	
  Fee	
  
  Lending/Renting/Leasing	
  
  Licensing	
  
  Bro...
  Physical	
  
  Manufacturing	
  facilities,	
  buildings,	
  vehicles,	
  machines,	
  systems,	
  
point-­‐of-­‐sales...
  Production	
  
  Manufacturing	
  Firms	
  
  Problem	
  Solving	
  
  consultancies,	
   hospitals,	
   and	
   oth...
  Optimization	
  and	
  economy	
  of	
  scale	
  
  Formed	
   to	
   reduce	
   costs,	
   and	
   often	
   involve	...
  Broad	
  classes	
  of	
  business	
  model	
  Cost	
  Structures	
  	
  
  Cost	
  Driven	
  
▪  low	
  price	
  Valu...
Prof	
  Shivananda	
  R	
  Koteshwar	
  
Director,	
  The	
  Amaatra	
  Academy	
  
shivoo@pes.edu	
  /	
  Facebook:	
  sh...
Exercise on How to strengthen your business model?
Exercise on How to strengthen your business model?
Exercise on How to strengthen your business model?
Exercise on How to strengthen your business model?
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Exercise on How to strengthen your business model?

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Exercise on How to strengthen your business model?

WOMEN ENTREPRENEURS’ WORKSHOP
Organized by Mount Carmel College
(in Association with National Entrepreneurship Network)
“ BUILDING A BETTER MARKET AND MANAGING FINANCE”

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Exercise on How to strengthen your business model?

  1. 1. Prof  Shivananda  R  Koteshwar   Director,  The  Amaatra  Academy   shivoo@pes.edu  /  Facebook:  shivoo.koteshwar   BUILDING A BETTER MARKET AND MANAGING FINANCE A One Day Workshop For Women Entrepreneurs Mount Carmel College, Bangalore EXERCISE:   Filling  the  canvas  with    9  Building  Blocks  
  2. 2.   For   your   idea/company,   write   down   the   business   9   essential   pieces   of   a   business   model     Fill  the  canvas  
  3. 3.   http://www.slideshare.net/shivoo.koteshwar/ how-­‐to-­‐strengthen-­‐your-­‐business-­‐model    
  4. 4.   Mass  Market     Consumer  Electronics     Niche  Market     Car   part   manufacturers   depend   heavily   on   purchases   from   major   automobile  manufacturers     Segmented     Citi   Bank   Platinum   and   Regular   customers   :   Both   segments   have   similar  but  varying  needs  and  problems     Diversified     2006  Amazon  decided  to  diversify  its  retail  business  by  selling  “cloud  computing”   services:   online   storage   space   and   on-­‐demand   server   usage.   Thus   it   started   catering  to  a  totally  different  Customer  Segment—Web  companies—with  a  totally   different  Value  Proposition     Multi  sided  platform/markets     A  credit  card  company,  for  example,  needs  a  large  base  of  credit  card   holders  and  a  large  base  of  merchants  who  accept  those  credit  cards  
  5. 5.   Newness     Cellphone  companies     Performance     Computers     Customization     Getting  the  job  done     Rolls-­‐Royce   airline   customers   rely   entirely   on   them     to   manufacture   and   service   their   jet   engines.   This   arrangement   allows   customers   to   focus   on   running   their   airlines.   In   return,   the   airlines   pay   Rolls-­‐Royce   a   fee   for   every   hour  an  engine  runs     Design     Fashion   and   consumer   electronics   Industry     Brand/Status     Rolex  or  LV     Price     No  frill  airlines  or  a  Nano  car     Cost  Reduction     Salesforce  sells  a  hosted  CRM  which   relieves  buyers  from  the  expense  and   trouble  of  having  to  buy,  install,  and   manage  CRM  software  themselves     Risk  Reduction     For  a  used  car  buyer,  a  one-­‐year  service   guarantee  reduces  the  risk  of  post-­‐ purchase  breakdowns  and  repairs     Accessibility     NetJets  popularized  the  concept  of   fractional  private  jet  ownership  service   previously  unaffordable  to  most  customer     Convenience/Usability     With  iPod  and  iTunes,  Apple  offered   customers  unprecedented  convenience   searching,  buying,  downloading,  and   listening  to  digital  music  
  6. 6.   Partner  or  own     Indirect  or  direct     Direct:  Own  Stores,  Web  stores,  Sales  force     Indirect:  Wholesaler,  Partner  Sales  
  7. 7.   Personal  Assistance     May  happen  onsite  at  the  point  of  sale,  through  call  centers,  by  e-­‐mail,   or  through  other  means.     Dedicated  personal  assistance     In  private  banking  services,  for  example,  dedicated  bankers  serve  high   net  worth  individuals     Self  Service     Automated  Services     Personal   online   profiles   giving   customers   access   to   customized   services     Communities     Co  Creation     Amazon    invites  customers  to  write  reviews  and  thus  create  value  for   other  book  lovers.     YouTube    solicit  customers  to  create  content  for  public  consumption.  
  8. 8.   Asset  Sale     Usage  Fee     Subscription  Fee     Lending/Renting/Leasing     Licensing     Brokerage     Advertising  
  9. 9.   Physical     Manufacturing  facilities,  buildings,  vehicles,  machines,  systems,   point-­‐of-­‐sales  systems,  and  distribution  networks     Walmart     Intellectual     Brands,   proprietary   knowledge,   patents   and   copyrights,   partnerships,  and  customer  databases     Qualcomm  (Patent)     Human     Crucial  in  knowledge-­‐intensive  and  creative  industries     Finance     Cash,   lines   of   credit,   or   a   stock   option   pool   for   hiring   key   employees.     Apartment  Selling  with  preapproved  bank  loans  
  10. 10.   Production     Manufacturing  Firms     Problem  Solving     consultancies,   hospitals,   and   other   service   organizations   are   typically   dominated   by   problem   solving   activities.   Their   business   models   call   for   activities   such   as   knowledge   management  and  continuous  training     Platform/Network     Microsoft’s   business   model   requires   managing   the   interface   between   other   vendors’   software   and   its  Windows.   operating   system  platform       Key  Activities  in  this  category  relate  to  platform  management,   service  provisioning,  and  platform  promotion  
  11. 11.   Optimization  and  economy  of  scale     Formed   to   reduce   costs,   and   often   involve   outsourcing   or   sharing  infrastructure     Reduction  of  risk  and  uncertainty     Blu-­‐ray  is  an  optical  disc  format  jointly  developed  by  a  group  of   the   world’s   leading   consumer   electronics,   personal   computer,   and  media  manufacturers.       The  group  cooperated  to  bring  Blu-­‐ray  technology  to  market,   yet   individual   members   compete   in   selling   their   own   Blu-­‐ray   product     Acquisition  of  particular  resources  and  activities     A   mobile   phone   manufacturer,   licensing   an   operating   system   for  its  handsets  rather  than  developing  one  in-­‐house     An  insurer  may  choose  to  rely  on  independent  brokers  to  sell  its   policies  rather  than  develop  its  own  sales  force.  
  12. 12.   Broad  classes  of  business  model  Cost  Structures       Cost  Driven   ▪  low  price  Value  Propositions,  maximum  automation,  and  extensive  outsourcing.   ▪  No  frills  airlines     Value  Driven   ▪  Characteristics:  Premium  Value  Propositions  and  a  high  degree  of  personalized  service     Characteristics:     Fixed   Costs:   Costs   that   remain   the   same   despite   the   volume   of   goods   or   services   produced.   Examples   include   salaries,   rents,   and   physical   manufacturing  facilities.     Variable   Costs:   Vary   proportionally   with   the   volume   of   goods   or   services   produced     Economies   of   Scale:   Cost   advantages   that   a   business   enjoys   as   its   output   expands.   Larger   companies,   for   instance,   benefit   from   lower   bulk   purchase   rates.     Economies  of  Scope:  Cost  advantages  that  a  business  enjoys  due  to  a  larger   scope  of  operations.  In  a  large  enterprise,  for  example,  the  same  marketing   activities  or  Distribution  Channels  may  support  multiple  products  
  13. 13. Prof  Shivananda  R  Koteshwar   Director,  The  Amaatra  Academy   shivoo@pes.edu  /  Facebook:  shivoo.koteshwar   BLOG:  http://shivookoteshwar.wordpress.com   SLIDESHARE:  www.slideshare.net/shivoo.koteshwar  

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