developing a business model

Rangkuman Introducing to Entrepreneurship

Developing an Effective Business Model

What is a business model?

·      Model

A model is a plan or diagram that’s used to make or describe something

·      Business model

A firm’s business model is its plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customer, and creates value to sustain itself on the basis of the profits it generates

The Importance of business model

·      Serves as an ongoing extension of feasibility analys. A

·      Focuses attention on how all the elements of a business fit together and constitute a working whole

Diversity of business models

·      There is no standard business model for an industry or for a target market within an industry

Components of a business model

Four components of a business model

·      Core startegy : describes how a firm competes relative to its competitors

·      Strategic resources : its has affects its business model substantially

·      Partnership network : new ventures, in particular, typically do not have the resources to perform key roles

·      Customer interface : the way a firm interacts with its customer hinges on how it chooses to compete