business model thinking
TRANSCRIPT
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Netflix
DVD Customers
StreamingContent
Customers
Advertisers
Self-servicevia Web
Customerhomepage
Website
Video gameconsoles
iOS Apps
Content hubs(ex: AppleTV)
DVD plan subscriptions Streaming plan
subscription Advertisingfees
Flat rate DVD rental via
No late feesunlimited #
turns on DVD's per plan
All you can stream videoNo commercials
Stream video on a number of
devices
Broad exposure of ads to
customers
Processing DVDorders
Streaming digital content
Content licensing
Producing original content
Technology development
Customer viewing
suggestions
Technology infrastructure
Licensed content
Original content
Customer viewing
behavior data
Knowledge of what content will be popular
Post office
Content providers
Content production companies
DVD mailing fees
DVD order processing
costs
Content licensecontracts
Cost of producing
original content
Data equipment, facilities &
staff
Business Model Canvas
Linked In
Linked In
Free Members
90%
Premium Members
10%
Recruiters
Advertisers
Employers
Sales Professionals
Developers
Targeted Marketing Solutions
Talent Management Solutions
Recruiter Solutions
Targeted Sales Solutions
Professional Profile
Company Pages
Linked In Groups
Premium services (on top of basic)
Resume Builder
Linked In Updates
Linked In Connection Management
Members
Linked In TodayTargeted Job Recommendations
Targeted content recommendations
InMail AccessView Profiles Outside NetworkJob Seeker PremiumViewed Profile?Other Advanced...
Content Exposure
Sticky Content Platform
Apps
Access to PlatformContent
Publishers
Value Exchange Map
Growth Strategist
Other Social Platforms
Integration
Strong Same Side Network Effects
Subscriptions
Basic Services
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Linked In
Web
Direct Sales Force
Free Members
Premium Members
Recruiters
Advertisers
Employers
Sales Professionals
Mobile Apps
Sign In with Linked In
Sites
Premium member
subscriptions
Developer Apps
Advertising solutions
Recruiters solutions
Employersolutions
Sales solutions
Build & manage professional
Identify Build & manage businesscontactsAccess to info &
knowledge to advance career Career
management
Targeted access to talent pool
Targeted access of business
professionalsCompany
exposure & talent mgt.
Targeted sales lead generation
Linked Inplatform
Linked Inplatform
development
Platformoperations
Direct salesforce
AppDevelopers
ContentPublishers
Sales & marketing
Link In members
Data center infrastructure
Apps
Other social media
platforms
Research & development
Content management &
monitoring
Promotions & advertising
Sales & marketing Research &
developmentactivitiesLinked In
platform development
Angie's List
Affiliates
Consumer Review Database
Angie's List MagazineBig Deal Notifications
Call Center SupportComplaint Resolution
Sign-up Fees &Subscription Fees
Free Listing
Advertising
Big Deal Promotions
Storefronts & e-Commerce ServicesAngie's List
6-12 Month Campaigns
Add Businesses
Subsidize
Subscription Fees
40% of Sale
60% of Sale
Reputation Management Tools
Reliable & High Quality ServicesProducts from Reputable Businesses
Revenue from Delivery of Products/Services
General Consumers
Homeowner Consumers
More Customers
Home Service Providers
Medical Service
Providers
Auto Service Providers
Other Service Providers
Small Businesses
More Members
Commissions Per Sign-up
Value Exchange MapGrowth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Angie's List
Homeowner Consumers
General Consumers
Home Service Providers
Medical Service Providers
Auto Service Providers
Other Service Providers
Hire the best service
providersAuthentic &
detailed reviewsComplaint
resolutionLive phone
supportDiscounts
Advisory information
Promote business
Get quality customers
Generate revenue
Build & manage
reputation
Direct viaWeb
Live support via call center
Affiliates
Platform
Call center
Sales & marketingPhone support
Complaint resolution
Platform development & maintenance
Generating content
Platform development
staff
Data & Infrastructure maintenance
Commissions for member
Sign-ups
Sales & marketing
staff
Sign-up fees&
subscriptions Advertising
e-Commerce services
Commissions on promotionsCall center
Business Model Canvas
MobileApps
37+ Million subscribersLeader in categoryS&P 500 (June 30th, 2013)#629 Fortune 1000 (2013)
Revenue: $3,609.282Gross Profit: $983.416Operating Income: $49.992Net Income: $17.152
Subscription revenue modelLong-tail business modelBroker/reseller model
General Info Business Model ThemesFinancial Picture (2012) Growth TrajectoryIncrease subscriber base with original content exclusive to Netflix; expand into international markets
Netflix is the leading Internet television network for movies and TV shows with nearly 38 million members in 40 countries. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen without commercials. NETFLIX
[Value Exchange Map]
Distribution Rights
DVD's
Content Providers
Ads
Right to Sell Streaming Content
Customers
VP
��'.�+
Streaming Content
DVD Content
Advertisers
��
Content Production
�
Streaming Content
Viewing Behavior
Advertising Fees DVD Jackets
�
Subscription �
Subscription �
% Sales �
License Fees�
% Sales
�
��
�Production Companies
��
Original Content
Intermediary Parters
[Apple, Sony, etc.]
�#&'���-��
�
DVD Postage
DVD Delivery
Reach Customers
Growth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Netflix
DVD Customers
StreamingContent
Customers
Advertisers
Self-servicevia Web
Customerhomepage
Website
Video gameconsoles
iOS Apps
Content hubs(ex: AppleTV)
DVD plan subscriptions Streaming plan
subscription Advertisingfees
Flat rate DVD rental via
No late feesunlimited #
turns on DVD's per plan
All you can stream videoNo commercials
Stream video on a number of
devices
Broad exposure of ads to
customers
Processing DVDorders
Streaming digital content
Content licensing
Producing original content
Technology development
Customer viewing
suggestions
Technology infrastructure
Licensed content
Original content
Customer viewing
behavior data
Knowledge of what content will be popular
Post office
Content providers
Content production companies
DVD mailing fees
DVD order processing
costs
Content licensecontracts
Cost of producing
original content
Data equipment, facilities &
staff
Business Model Canvas
35+ million subscribersLeader in categoryActive in 48 countries#851 in Fortune 1000 (2013)
Revenue: $2,334.472Gross Profit: $1,615.532Operating Income: $98.701Net Income: $-54.773
Collective buying modelBroker/reseller modelFinancial intermediary Model
General Info Business Model ThemesFinancial Picture (2012) Growth TrajectoryExpand goods business; physical warehouses for faster shipping;Groupon Reserve (capacity mgt);POS Apps and merchant services
Groupon is a marketing service that helps businesses attract customers by offering deep discounts on things to eat, see, and do in more than 500 markets worldwide. Groupons leverages collective buying power to guarantee businesses a minimun number of customers.GROUPON
[Value Exchange Map]Growth Strategist
Launch Deals at 50-90% Discount (Usually 50%)
Daily Deal �*.&2 �.&*)-
Guaranteed Number of Customers
50% of Revenue �
Merchant Consultation (Design Deals)
Customer Intel
VP
Groupon
Join Deal Group & Commit Payment
�
Deal Activates (Minimum Number of Customers Reached)
More Potential Customers
Heavily Discounted Products & Services
�
Capture 100% of Payment
Groupon
���
Local Offers
Local Offers
Local Offers
Group of Buyers
MerchantsDeal Cancels; No One Charged
ElsePayout Over 3 Months
Groupon customers will spend aboveMerchant Value Capture Assumptions
Groupon customers will come back and pay full priceWord of mouth referrals will generate new customers
��
1
1
�
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Groupon
Consumers
Automated Direct via Web
and email
Small Businesses
Mobile Apps
Help businesses attract new customers
Guaranteed # of customers per daily deal
Daily deal notifications
Commissions on sale of daily
deals
Groupon Apps & Web
platform
Sales & marketing
Platform & app development
Technology operations
IT development
staff
Sales & marketing
staff
Discounts of 50%-90%
Groupon is guaranteed
POS solution &credit cardprocessing
Direct via Sales & Marketing
TeamMerchant
center
POS & Credit card processing
services
Reservation system??
Credit card clearing houses
SpotifyValue Exchange Map
Free service
Unlimited service
Premium service
Advertisers
Distributor / aggregators
Large music labels
Merlin Network
ISP's
Platform Operators mobile
operators
Consumer electronics companies
SpotifyReach customers
Royalty fees
Right to distribute music
Targeted exposure (free users)
Revenue from advertising (Free users only)
$4.99/month
$9.99/month
Partners
Increase utility value of product or service Growth Strategist
Add usersSubsidized
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Spotify
Free
Unlimited
Premium
AdvertisersTarget by
demographicsTarget by location &
music genre
Tracking & reporting
portal
Customers not hostile to
advertisement
Distributor /aggregators
Large music labels
Delivery platform
developmentContent
licensing & reporting
Merlin Network
Mobile Operators
Consumer electronics companies
ISP's
Huge catalogue of big music & Independent
Platform Operators
Deliveryplatform
Listen to music on any device
Social media integration
download & listen to music
off-line
Unlimitedsubscriptions
Premium subscriptions
Advertising revenue
(free users only)
ITinfrastructure development
Analyze customer behaviors
Knowledge of customer
listening prefs
Infrastructure maintenance
Royalty fees
Business Model Canvas
Direct viaWeb
Whole Foods Market
Purchases
Lifestyle Grocery Brand (Customer Pull)
Affluent Social
Shoppers
Healthy Lifestyle Shoppers
Values-based Shoppers
Unique Shopping Environment
Happy, Friendly and Knowledgeable Staff
Elagent/Artistic Stores
Coffee Bar, Bakery and Eatery (Large Selection)
Customer-centric AttitudeCustomer Service #1
In-store Cooking Exhibition & Food SamplingSamples Throughout Store
Fresh Juice Bar
Produce & other items meticulously displayed
Eating/Socializing Areas
Grocery Products
Quality Standards & Values
Producers
Distributors
Supplier Partners
Organic Certifiers
Fair Trade Certifiers
Other Partners
Social Responsibility
Certifiers
Sustainable Practices Certifier
Grocery Products
Purchases
Various Services
PurchasesSpecialty Service Providers
Support
Whole Foods
Market
Custom Services
Supply Chain Compliance to Standards
Consumers
Value Exchange MapGrowth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Whole Foods Market
Healthy Lifestyle Shoppers
Affluent Social
Shoppers
Values-based Shoppers
Personal interaction in
stores
In-Store purchases
Producers
Distributors
Specialty service
providers
Certifyingorganizations
Onlinepurchases
Delighting customers
StoresCustomer centric culture
Store design
StockingProducts for
storesOutsourcedservices for
storesStore
operations
High qualityproducts
(certified)
Building outnew stores
PurchasingSupply chainmanagement
(win-win)
Store Amenities
High qualitynatural &
organic productsDelightful shopping
experienceCertifiedquality
standards
Localcommunity
support
Adhere toSustainablepractices
Progressiveorganizationalculture & values
Business Model Canvas
INNODYNBusiness Growth Development
®
www.innodyn.net
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