how to create a business with one euro or no money
Post on 05-Dec-2014
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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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