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strategy business model development - Coggle Diagram
strategy business
model development
Core competencies
collective learning of the organization, especially how to coordinate diverse production skills & integrate multiple streams of technology … [through] … communication, involvement, and a deep commitment to work across organizational boundaries
provide potential access to a wide variety of markets rather than generate competitive
add value’ by making ‘a significant contribution to the perceived customer benefit
difficult for competitors to copy
Effectual reasoning
Entrepreneurs’ goals are broad & evolve based on personal strengths & resources
Entrepreneurs go to market quickly & as cheaply as possible (affordable loss)
Entrepreneurs do not like formal market research & prefer to ‘learn by doing’
Entrepreneurs partner with stakeholders
Entrepreneurs less concerned with competitors
Advantages of using a business model framework
Allows elements of model to be easily modified
Allows innovative options to be explore in a structured way
Facilitates the understand of linkages between elements of the model
Allows the testing of new models against established ones
Allows experiment with different versions to see which critical assumptions are most realistic (revenue model; pricing, sales, costs etc.)
Helps identify patterns & ensure consistency in the elements of the model
Market segments
Significantly different needs from other segments
Sufficiently large, or willing to pay a high enough price, to be viable
Accessible through communication or distribution channels
Defendable from competitors
Value proposition
How the product/service will solve a problem for your target customers
The benefits they can expect (not the features of the product/service)
Why customers buy from you rather than competitors
Generic strategies & business imperatives
Some characteristics of successful internet business models
Unbundle generic business models
– different models applied to different market segments
Long tails
– a large number of small-volume, niche products at high price
Multi-sided platforms
– bringing together different market segments that derive value from the others (network effect)
Free product/services
– non-paying customers financed by other customers
Open business models
– where value is created by partner collaboration
Internet business imperatives
Speed to market
- first-mover advantage
Speed of market dominance
– this gives market power, so it is generally better to dominate a small market than to be a small player in a big market
Strength of brand
- this is the tool that helps carve out market dominance
Tools for SWOT analysis
S
strength
W
weakness
O
opportunities
T
threats
Market research
Benchmarking against performance metrics, industry norms and CSFs
PESTEL analysis and other futures-thinking techniques
Value chain analysis
Product/service life cycle analysis
Product/market portfolio analysis
Porter’s Five Forces analysis
Business models
