The Leading Source of Insights On Business Model Strategy & Tech Business Models
The Leading Source of Insights On Business Model Strategy & Tech Business Models
The business model is a way to capture value in the long-term for any organization. The business model it is also about monetization, but that is also about the other parties involved. A successful business model has to unlock value for the stakeholders (users, customers, suppliers, and employees) and not just for shareholders.
Showrooming is the process in which a shopper goes in a physical store to browse for products. Webrooming is the reverse process of showrooming. In the showrooming process, instead, consumers browse for products in the physical store, to finalize the purchase on an online platform at a lower price. Aspect Webrooming Showrooming Definition Webrooming is […]
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Waterfalling is an ad inventory mechanism that publishers use to unload the remaining inventory they could not sell at a premium price. Thus, with waterfalling, publishers sell the remaining inventory at subsequent lower price tiers to maximize profitability. In short, this is a technique that publishers use to maximize their profits on an otherwise unsold
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Blitzscaling is a business concept and a book written by Reid Hoffman (LinkedIn Co-founder) and Chris Yeh. At its core, the concept of Blitzscaling is about growing at a rate that is so much faster than the competitors that make you feel uncomfortable. In short, Blitzscaling is prioritizing speed over efficiency in the face of
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In Economics, a Diseconomy of Scale happens when a company has grown so large that its costs per unit will start to increase. Thus, losing the benefits of scale. That can happen due to several factors arising as a company scales. From coordination issues to management inefficiencies and lack of proper communication flows. Aspect Explanation
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A revenue stream is one of the foundational building blocks of a business model, and the economic value customers are willing to pay for the products and services offered. While a revenue stream is not a business model, it does influence how a business model works and delivers value. Revenue streams vs. business models How
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A value proposition is about how you create value for customers. While many entrepreneurial theories draw from customers’ problems and pain points, value can also be created via demand generation, which is about enabling people to identify with your brand, thus generating demand for your products and services. Aspect Explanation Concept Overview The Value Proposition
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A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward. Imagine the case of a platform like LinkedIn. For each additional user, joining, which also enriches the online resume, makes the platform more valuable
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Serial entrepreneur and venture capitalist Paul Graham popularized the term “Ramen Profitability.” As he pointed out, “Ramen profitable means, a startup makes just enough to pay the founders’ living expenses.” Let’s dive into this concept to see what it means and why it matters. What is Ramen Profitability? Entrepreneur and venture capitalist Paul Graham popularized
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A distribution channel is the set of steps it takes for a product to get into the hands of the key customer or consumer. Distribution channels can be direct or indirect. Distribution can also be physical or digital, depending on the kind of business and industry. Distribution Types Database Company Distribution Type Description Amazon Business
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The lean startup canvas is an adaptation by Ash Maurya of the business model canvas by Alexander Osterwalder, which adds a layer that focuses on problems, solutions, key metrics, unfair advantage based, and a unique value proposition. Thus, starting from mastering the problem rather than the solution. Component Questions to Ask Description Applications Problem –
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Subscription-based business models are built on a recurring customer base, where customers rather than own, usually have access to the product or service. The customer can have the upside of the service, without owning the good underlying it, which is maintained by the company running the subscription-based business. Aspect Explanation Definition The Subscription Business Model
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Don Valentine from Sequoia Capital might have coined the term. While Marc Andreessen from A16z popularised it as “being in a good market with a product that can satisfy that market.” According to Andreessen, that is when a product or service has its place in the market, thus enabling traction for the company offering that
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In his book, Crossing the Chasm, Geoffrey A. Moore shows a model that dissects and represents the stages of adoption of high-tech products. The model goes through five stages based on the psychographic features of customers at each stage: innovators, early adopters, early majority, late majority, and laggards. Stages Description Examples Strategies Challenges Innovators
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As pointed out by Eric Ries, a minimum viable product is that version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology. Company MVP Concept Validation
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Nestlé is a powerhouse of consumer brands spanning baby foods, bottled waters, powdered drinks, cereals, coffee, drinks, pet care, and more. The company made over 94 billion Swiss Francs in 2022 (over $100 billion), with high margins on its powdered and liquid beverages (coffee, cocoa, and malt beverages and tea categories). While many people might
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PepsiCo is a Food and Beverage Empire that, in 2021, made over $79.5 billion in revenues and over $7.6 billion in profits. The company distributes its brands via direct-store delivery, customer warehouses, and other distribution networks. Value Proposition: PepsiCo key segments With a multi-billion dollar empire, PepsiCo has refined its business model to make it
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Nike’s vision is “To bring inspiration and innovation to every athlete in the world.” At the same time, its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making
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Quora is a question-and-answer website that allows anyone to ask questions publicly or anonymously. As of now, Quora has grown thanks to several rounds of investments from venture capital firms. Among those firms are Peter Thiel’s Founders Funds and Paul Graham’s Y Combinator. Quora now generates revenues with advertising. Business Model Element Analysis Implications Examples Value Proposition Quora’s
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Microsoft’s mission is to empower every person and every organization on the planet to achieve more. In 2021, Microsoft made over $168 billion in revenues, with Office Products and Windows as still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and Enterprise (GitHub). Aspect Description Analysis
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TOMS Shoes’ business model is called one-for-one. It means that for each pair of shoes sold, the company gives one pair back to kids in developing countries. The one-for-one model allows the company to monetize through consumers’ word of mouth and social campaigns, with a minimum effort in terms of sales and marketing. The one-for-one
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