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1、6 1 Chapter6 DevelopinganEffectiveBusinessModelBruceR BarringerR DuaneIreland 6 2 ChapterObjectives1of2 Describeabusinessmodel Explainbusinessmodelinnovation Discusstheimportanceofhavingaclearlyarticulatedbusinessmodel Discusstheconceptofthevaluechain Identifyabusinessmodel stwopotentialfatalflaws 6
2、 3 ChapterObjectives2of2 Identifyabusinessmodel sfourmajorcomponents Explainthemeaningofthetermbusinessconceptblindspot Definethetermcorecompetencyanddescribeitsimportance Explaintheconceptofsupplychainmanagement Explaintheconceptoffulfillmentandsupport 6 4 WhatisaBusinessModel ModelAmodelisaplanord
3、iagramthat susedtomakeordescribesomething BusinessModelAfirm sbusinessmodelisitsplanordiagramforhowitcompetes usesitsresources structuresitsrelationships interfaceswithcustomers andcreatesvaluetosustainitselfonthebasisoftheprofitsitgenerates Theterm businessmodel isusedtoincludealltheactivitiesthatd
4、efinehowafirmcompetesinthemarketplace 6 5 Dell sBusinessModel1of2 It simportanttounderstandthatafirm sbusinessmodeltakesitbeyonditsownboundaries Almostallfirmspartnerwithotherstomaketheirbusinessmodelswork InDell scase itneedsthecooperationofitssuppliers customers andmanyotherstomakeitsbusinessmodel
5、possible 6 6 Dell sBusinessModel2of2 Dell sApproachtoSellingPCsversusTraditionalManufacturers 6 7 TheImportanceofBusinessModels Havingaclearlyarticulatedbusinessmodelisimportantbecauseitdoesthefollowing Servesasanongoingextensionoffeasibilityanalysis Abusinessmodelcontinuallyasksthequestion Doesthis
6、businessmakesense Focusesattentiononhowalltheelementsofabusinessfittogetherandconstituteaworkingwhole Describeswhythenetworkofparticipantsneededtomakeabusinessideaviablearewillingtoworktogether Articulatesacompany scorelogictoallstakeholders includingallemployees 6 8 DiversityofBusinessModels Divers
7、ityorVarietyinBusinessModels Thereisnostandardbusinessmodelforanindustryorforatargetmarketwithinanindustry However overtime themostsuccessfulbusinessmodelsinanindustrypredominate Therearealwaysopportunitiesforbusinessmodelinnovation 6 9 BusinessModelInnovation Netflixisanexampleofabusinessmodelinnov
8、ator 6 10 HowBusinessModelsEmerge1of3 TheValueChainThevaluechainisthestringofactivitiesthatmovesaproductfromtherawmaterialstage throughmanufacturinganddistribution andultimatelytotheenduser Bystudyingaproduct sorservice svaluechain anorganizationcanidentifywaystocreateadditionalvalueandassesswhether
9、ithasthemeanstodoso Valuechainanalysisisalsohelpfulinidentifyingopportunitiesfornewbusinessesandinunderstandinghowbusinessmodelsemerge 6 11 HowBusinessModelsEmerge2of3 TheValueChain 6 12 HowBusinessModelsEmerge3of3 TheValueChain continued Entrepreneurslookatthevaluechainofaproductoraservicetopinpoin
10、twherethevaluechaincanbemademoreeffectiveortospotwhereadditional value canbeadded Thistypeofanalysismayfocuson Asingleprimaryactivitysuchasmarketingandsales Theinterfacebetweenonestageofthevaluechainandanother suchastheinterfacebetweenoperationsandoutgoinglogistics Oneofthesupportactivities suchashu
11、manresourcemanagement 6 13 PotentialFatalFlawsinBusinessModels FatalFlawsTwofatalflawscanrenderabusinessmodeluntenablefromthebeginning Acompletemisreadofthecustomer Utterlyunsoundeconomics Psportedanunsoundbusinessmodel andfailed 6 14 ComponentsofaBusinessModel FourComponentsofaBusinessModel 6 15 Co
12、reStrategy1of3 CoreStrategyThefirstcomponentofabusinessmodelisthecorestrategy whichdescribeshowafirmcompetesrelativetoitscompetitors PrimaryElementsofCoreStrategyMissionstatement Product marketscope Basisfordifferentiation 6 16 CoreStrategy2of3 PrimaryElementsofCoreStrategy MissionStatement Product
13、MarketScope Acompany sproduct marketscopedefinestheproductsandmarketsonwhichitwillconcentrate Afirm smission ormissionstatement describeswhyitexistsandwhatitsbusinessmodelissupposetoaccomplish 6 17 CoreStrategy3of3 PrimaryElementsofCoreStrategy BasisofDifferentiation Itisimportantthatanewventurediff
14、erentiateitselffromitscompetitorsinsomewaythatisimportanttoitscustomers Ifanewfirm sproductsorservicesaren tdifferentfromthoseofitscompetitors whyshouldanyonetrythem 6 18 StrategicResources1of3 StrategicResourcesAfirmisnotabletoimplementastrategywithoutresources sotheresourcesafirmhasaffectsitsbusin
15、essmodelsubstantially Foranewventure itsstrategicresourcesmayinitiallybelimitedtothecompetenciesofitsfounders theopportunitytheyhaveidentified andtheuniquewaytheyplantoservetheirmarket Thetwomostimportantstrategicresourcesare Afirm scorecompetencies Strategicassets 6 19 StrategicResources2of3 Primar
16、yElementsofStrategicResources CoreCompetencies StrategicAssets Acorecompetencyisaresourceorcapabilitythatservesasasourceofafirm scompetitiveadvantage ExamplesincludeSony scompetenceinminiaturizationandDell scompetenceinsupplychainmanagement Strategicassetsareanythingrareandvaluablethatafirmowns Theyincludeplantandequipment location brands patents customerdata ahighlyqualifiedstaff anddistinctivepartnerships 6 20 StrategicResources3of3 ImportanceofStrategicResourcesNewventuresultimatelytrytocombi
