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.
With nearly €36 billion in sales in 2023, the Spanish Fast Fashion Empire Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. Spain contributed the most to the fast fashion […]
A Quick Glance At Inditex, The Spanish Fast Fashion Empire Read More »
The post-it business plan is a methodology that helps you focus on keeping a long-term focus on your mission and vision, while also having a short-term focus on experimentation, execution, and speed. Are business plans useful at all in today’s business world? In the old days, you would start to build a business by writing
What Is A Post-It Business Plan? The Case For A Post-It Business Plan Read More »
Pretotyping comes from the words “pretend” and “prototype.” It is a method to validate business ideas to improve the chances of building a product people want. Pretotyping helps answer such questions (about the product or service to build), such as: Would I use it? How, how often, and when would I use it? Would other
What Is Pretotyping? How To Use Pretotyping To Validate Your Business Idea Read More »
Berkshire Hathaway is the investment firm from billionaire Warren Buffett. It was once a textile company founded back in 1839. In 1962 Warren Buffett started to acquire shares of the company until he had ownership of it. However, as Warren Buffett would later notice, Berkshire Hathaway represented the worst investment he’s ever made. Although he
What Is Berkshire Hathaway? Warren Buffett’s Company In A Nutshell Read More »
Microsoft has a diversified business model, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). In 2023, Microsoft made almost $212 billion in revenues, of which almost $80 billion came from Server products and cloud services, and almost $49 billion came from Office products and cloud services. Windows
How Does Microsoft Make Money? Microsoft Business Model And The OpenAI Bet Read More »
WeWork’s business model claims to leverage the space-as-as-service model. It consists of a set of services meant to sustain the growth of the companies as part of the membership model, composed of four primary tiers: standard, configured, on-demand, and Powered by We (Custom). This model helps WeWork achieve its vision and mission. And it flips the
Space As A Service (SPaaS) Business Model [WeWork Case Study] Read More »
Digital transformation enables existing businesses to leverage digital technologies for business model innovation. The process of digital transformation is not just about new distribution channels. It starts by better serving key customers, and it completes by developing a new business mindset required to succeed in the digital era. Aspect Explanation Digital Transformation Digital Transformation is
Digital Transformation: Definition, Mindset, And Principles Read More »
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
What Is Ramen Profitability And Why It Matters Read More »
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
Distribution Channels: Types, And Examples – Updated 2023 Read More »
Niche marketing is a strategy whose premise is to target a subset of a market that can be of various sizes. Where a marketing strategy focused on the whole potential market used to be effective when mass advertising was possible, a niche marketing strategy can help position your brand more efficiently nowadays. Aspect Explanation
What Is Niche Marketing And Why You Need A Niche Marketing Strategy Read More »
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 –
What Is a Lean Startup Canvas? Lean Startup Canvas In A Nutshell Read More »
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
Network Effects In A Nutshell Read More »
In a negative network effect as the network grows in usage or scale, the value of the platform might shrink. In platform business models network effects help the platform become more valuable for the next user joining. Negative network effects (congestion or pollution) reduce the value of the platform for the next user joining. Network congestion As
What Are Negative Network Effects And Why They Matter Read More »
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
What Is Waterfalling And Why It Matters For Publishers Read More »
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
Revenue Stream: Examples, And Types Of Revenue Streams Read More »
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
Value Proposition Canvas And Design In A Nutshell Read More »
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
What Are Diseconomies Of Scale And Why They Matter Read More »
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
What Is Blitzscaling And Why It Matters Read More »
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
Webrooming And Showrooming In A Nutshell Read More »
Fastly follows an enterprise business model, which offers an edge cloud platform. Fastly business model leverages an active community of developers. A good chunk of its revenues got spent on sales and marketing processes as an enterprise business. The company has dozens of field sales representatives and sales managers. For a monthly fee, enterprise customers
Fastly Business Model Analysis Read More »
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