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Business Model
1. 11/28/2013
Business Model
Business Model
A business model describes the rationale
of how an organization creates, delivers,
and captures value
Business Model Generation,
Osterwalder & Pigneur, 2010
1
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Value Proposition
The bundle of products and services that create value to
solve customer problems and satisfy customer needs,
Newness, Improving Performance, Customization
Economic, Functional, Emotional values
Business Model Generation,
Osterwalder & Pigneur, 2010
Customers
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Customer Segment
The target groups of people or organizations an enterprise
aims to reach and serve using value propositions
Mass, Niche, Segmented, Diversified, Multi-sided Platform
Business Model Generation,
Osterwalder & Pigneur, 2010
Distribution Channel
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Key Resources
Describes the most important assets required to make a business model work
Human, Intellectual, Physical, Financial
Business Model Generation,
Osterwalder & Pigneur, 2010
Key Activities
Describes the most important things a company must do to make its business
model work
Business Model Generation,
Osterwalder & Pigneur, 2010
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9. 11/28/2013
Key Partnership
Motives: Optimization, Risk reduction, Acquisition of particular resources and activities
Model: Strategic alliances, Coopetition, Joint ventures, Buyer-supplier relationships
Business Model Generation,
Osterwalder & Pigneur, 2010
Cost Structure
Describes all costs incurred to operate a business model
Fixed, Variable costs
Economic of Scale, Economic of Scope
Business Model Generation,
Osterwalder & Pigneur, 2010
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