CHAPTER 9<br />APPRAISAL OF BUSINESS MODEL<br />Comparing one business model to another<br />Elements of an appraisal/review<br />Juniper Networks business model<br />Appraise that model<br />
ELEMENTS OF APPRAISING BUSINESS MODELS<br />Measurement of how good a business model can be done using 3 levels<br />Measure of profitability<br />Profitability prediction<br />Business model components attributes<br />
Profitability Measures<br />To measure how good a business model is – to compare its profitability to its competitors<br />Use earnings & cash flow, if earnings & cash flow are +ve than business is good<br />Problem is, start-ups has good business models but does not show profit.<br />Needs more reliable form of measurement<br />
Profitability Predictor Measures<br />Knowledge based product needs measurement in forms of profit margin, revenue market share, & revenue growth rate<br />Compare it with its industry’s competitors<br />Higher means good<br />
Business Model Components Measures<br />Measures the source of the business model to analyze its usefulness<br />10 components of business models, compare each one.<br />Check benchmark questions to further detail<br />Table 9.2 pg 163<br />
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