http://www.flickr.com/photos/remiforall/4863239481/sizes/l/in/photostream/

Criteria(from 1 to 5)

Idea 1 Idea 2 Idea 3

Low capital + lowfixed costs

Scalable

Easy to spread

Easy to sell + short sale cycle

Automated

Focus on customervalue

TOTAL

“A business model describes

the rationale of how an

organization creates,

delivers, and captures

value”

Type Detail Example

Mass market

Don’t distinguish between different Customer Segments. All blocks focus on one large group of customers

Consumer electronics sector

Niche marketSpecific and specialized CustomerSegments

Car part manufacturer

SegmentedSlightly different needs and problems Credit Suisse with customers

of 100K€ and other of 500K€

DiversifiedTwo unrelated Customer Segments Amazon book store vs AWS

Multi-sided markets

Two or more interdependent Customer Segments

A credit card company => card holders and merchants

Type Detail Example

NewnessAn entirely new set of needs that customers previously didn’t perceivebecause there was no similar offering

Internet

PerformanceTo improve product or service performance Internet access (4G)

CustomizationTo tailor products and services to the specificneeds of individual customers or CustomerSegments

Renault Captur

“Getting the job done”

To help a customer get certain jobs done The airlines pay Rolls-Royce a fee for every hour an engineruns

DesignStrong focus currently Fashion and consumer

electronics industries

Brand/status To use and display a specific brand Rolex, Quicksilver

PriceFor price-sensitive CustomerSegments

Nano car by Tata, Easyjet, Free mobile

Type Detail Example

Personal assistanceBased on human interactions Point of sale, email, phone…

Dedicated personalassistance

To dedicate a customer representative Bank account manager

Self-serviceNo direct relationship with customers FAQ

Automated services

Portal to customize services Flight booking

CommunitiesA community manager and a community provide assistance

Open source software

Co-creationTo design new product or service Powtoons solicits customers to

create content

Type Detail Example

Asset saleTo sale ownership rights to a physical product

Renault with car, Amazon with books

Usage feeThe use of a particular service. The more a service is used, the more the customer pays

Cloud infrastructure services, phone service per minute…

Subscription feesTo sale continuous access to a service Fitness club

Renting/leasing

Temporarily grants someone the exclusive right to use a particular asset for a fixed period in return for a fee

Autolib in Paris to rent a car

LicensingTo give customers permission to useprotected intellectual property in exchange for licensing fees

Multitouch screen patent

Brokerage feesIntermediation services performed on behalf of two or more parties

Real estate agents

AdvertisingFees for advertising a particular product, service, or brand

Mobile app ads

Type Detail Example

PhysicalEx. manufacturing facilities, buildings,vehicles, machines, systems, point-of-sales systems, and distribution networks

Ikea

IntellectualBrands, proprietary knowledge, patents and copyrights, partnerships,and customer databases

Patented microchip of Qualcomm, Microsoft intellectual property, Nike brand

HumanIn particular in knowledge-intensive and creative industries

Experienced scientists and sales force in Novartis

Financial

Financial resources and/or financial guarantees, such as cash, lines ofcredit, or a stock option to hire key peopleand get key customers

Ericsson borrows funds and uses a part of them to provide vendor financing to equipment customers

Type Detail Example

ProductionTo design, make, and deliver a product in substantial quantities and/or of superior quality

Mercedes, Apple

Problem solvingTo come up with new solutions to individual customer problems

Consultancy, hospital

Platform/networkNetworks, matchmaking platforms, software, and even brands can function as a platform

eBay

Type Detail Example

Optimization and economy of scale

To optimize the allocation of resources and activities to reduce costs

Equipment car manufacturer such as Valeo

Reduction of risk and uncertainty

Partnerships can help reduce risk in a competitive environment characterized by uncertainty

A strategic alliance in a marketwhile competing in another onei.e Blu-ray

Acquisition of particular resources and activities

To extend its own capabilities by relyingon other firms to furnish particular resources or perform certain activities

A mobile phone manufacturer may license an operating system

Type Detail Example

Cost-drivenTo minimize costs wherever possible Rayanair

Value-driven

Premium Value Propositions and a high degree of personalized serviceusually characterize value-driven business models

Luxurious hotels

Fixed costsCosts that remain the same despite the volume of goods or services produced

Physical manufacturing facilities

Variable costsCosts that vary proportionally with thevolume of goods or services produced

Music festival

Economies of scaleAverage cost per unit falls as output rises Bulk purchase rates

Economies of scopeCosts advantages from a larger scope of operations

Marketing activities in large companies

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