6. Strategic Management @ 2013
Example business models over the years
• The open business model
• The subscription business model
• The razor and blades business model
(bait and hook)
• The pyramid scheme business model
• The
multi-level marketing business model
• The network effects business model
• The monopolistic business model
• The cutting out the middleman model
• The auction business model
• The online auction business model
• The bricks and clicks business model
• The loyalty business models
• The Collective business models
• The
industrialization of services business
model
• The
servitization of products business model
• The low-cost carrier business model
• The online content business model
• The freemium business model
• The premium business model
• The direct sales model
• The professional open-source model
• Various distribution business models
6
12. Strategic Management @ 2013
Develop a customer value proposition
• Economic value ………..Price
• Functional value………..Solution
• Emotional value…………Experience
• Symbolic value………….Meaning
13. Strategic Management @ 2013
Two Generic “Value types”
– Trapped Value
• More efficient markets
• More efficient value systems
• Ease of access
• Disrupt current pricing power
– New-To-The-World Value
• Customize offerings
• Extend reach and access
• Build community
• Enable collaboration
• Introduce new functionality or experience
20. Strategic Management @ 2013
20
Profit Zones / Profit Pools
Source: Adapted from Walters (2002), Gadiesh and Gilbert (1998) and Slywotzky and Morrison (1997)
44. Strategic Management @ 2013
the degree of ideality is defined as useful functionality of a system minus all negative factors that diminish its value, and divided by costs.