developingthebusinessmodelchp11-150119073139-conversion-gate02.pptx

entreprenuership 12

1. Business Model

2. OBJECTIVES Explain the components of a business model Develop a business model for a business plan Identify the components of a business plan

3. Business model describes the factors of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts. The development of business model construction and variation is also called business model innovation It describes what products or services the business plans to manufacture and market, and how it plans to do so, as well as what expenses it will incur.

4. phases in developing your business model, namely Identifying the specific audience; Establishing business process; Recording business resources; Developing strong value proposition; Determining key business partners; Creating demand for today’s generation strategy and being open for innovations

5. CLASS ACTIVITY Discover the components of Google’s Business model Divide the class in groups of two or three for the activity listed below Instructions: Each group are to examine slide five Read the questions on slides six and seven and collaborate with each other on their findings (allotted time 10 minutes) Re-arrange the groups of two or three and let them share their discovery with each other (allotted time 10 minutes)

6. Developing the Business Model

7. Value Proposition Components The product offering: What will make the product offered different from those of competitors? Type of product: Will the product be standardized or customized? Distribution method: Will direct or indirect distribution be used? Manufacturing process: Internal manufacturing or outsourcing?

8. (Google) Beneficiaries Business to Business (B2B), Business to Consumer (B2C) or both? Local, regional or international? General or niche-market?

9. Considerations for Operations Internal capabilities of a business arising out of organizational structure and/or culture Unique skills derived from previous experience, training or strategic hiring Technologies which allow the firm to be more efficient or effective Benefits from existing patents and developing products which can be patented Resources which the firm might be able to acquire to its advantage.

10. Product Differentiation Strategies Operational excellence Product quality Innovative leadership Cost Leadership Networks

11. Google Differentiation Strategy: Quality and Innovative Leadership