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How to design a winning business model - Coggle Diagram
How to design a winning business model
Characteristics of a good business model
Self-reinforcing
Robust
slack
substitution
imitation
holdup
Alignment to company goals
What is a business model?
Choices
Assets (tangible resources)
Governance (decision making rights)
Policies (all operations)
Consequences
Flexible
(easy to imitate,
fast response with underlying choice changes)
eg. lower sales from higher price
Rigid
(difficult to imitate,
time to build)
eg. culture
How business models generate virtuous cycles
Competing with business models
Weaken competitors' cycles
Turn competitors into complements
Strengthen virtuous cycle
Business models vs strategy vs tactics