MOS 2296Business Models

Lecture 3Colleen Sharen

What is a Business Model?

NotThis Kind

of Mode

l

A Representation

Tells a Story

Economic Logic

System: How the pieces fit together

Does the story make sense?

4

Licensing

Transaction Fees

Key Expenses

Key Success Factors

InvestmentSize

Model vs. Strategy

Strategy

Differen-tiation

Model vs. Plan

Rethinking the Business Model

Creates Advantage

Plenty of Fish (POF)

• What is the POF revenue model?• What are the key success factors of the POF

business model?• Key Expenses of the model?• What are the models of its competitors? • Is the POF business model sustainable? • What alternatives might Fried consider?• As Fried, what would you do?

What did you Learn?

Sources

Joan Magretta. “Why Business Models Matter”. Harvard Business Review. May 2002.

Richard Hamermesh, Paul Marshall, Taz Pirmohamed. Note on Business Model Analysis for the Entrepreneur. Harvard Business School. 2002.

Donald Hambrick and James Fredrickson. “Are you sure you have a strategy?”Academy of Management Executive. 2001.

Photo Attributions

• Female Model photo: Source Flickr, Creative Commons, Alaine Lorza http://www.flickr.com/photos/7876071@N06/

• Wooden Toy Model photo: Source Flickr, Creative Commons, • Puzzle Piece http://www.flickr.com/photos/wilhei/109403306/• Quarterly revenue chart: Flickr, Creative Commons, Danny Sullivan

http://www.flickr.com/photos/dannysullivan/375895619/• Credit card photo: Flickr, Creative Commons, Andres Ruedea,

http://www.flickr.com/photos/andresrueda/3274955487/sizes/l/• Business Model Post It Notes photo: Flickr, Creative Commmons, Alex

Osterwalder, http://www.flickr.com/photos/osterwalder/177179799/