Business Model Design

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Question 1-5:

cost structure, value propositions, key activities, key resources, key

partnerships

Question 6-10:

long tail, unbundling, free as a business model, multi sided platform,

open business model

Question 11-15:

11 12 13 14 15

T F T F F

Question 16:

Free business model allows customers to use their platform for free, only

charging for upgrades or additional services. An example is SKYPE,

where you can use it totally for free and only pay if you want to call

landlines or mobile numbers. And operational cost is relatively low.

Question 17:

Diverse team is when members are different according to age, gender,

religion, nationality (cultural background), experiences, sexual

orientation, political preferences, be from various business units, have

different levels of seniority, areas of expertise. Then it becomes efficient

to generate ideas.

Question 18:

Bargaining power of buyers – it happens, when a little ammount of

buyers account for the majority of sales. Then these buyers can demand

more product or service.

Intensity of competitive rivalry - The number of rivals and understanding

how strong they are affect relationships with customers and suppliers.

Bargaining power of suppliers – we should understand how powerful the

supplier is. If they are, it can affect pricing and quality.

Threat of new entrants – understand how easy is it for new entrants to

join an industry. The more complex the industry is, the higher possibility

of new entrants exist.

Threat of substitutes – if there is a big number of substitutes, buyers have

more options acccording to price, acceptability and quality of

products/services.

Question 19:

To develop a good understanding of your organization’s environment you

have to think outside the box and develop an understanding of the internal

and external influences that affect your organisation and success. There

are three levels: external, organizational and immediate environment.

You should take into account legislation, economic and political

conditions, state policies, trends. Understanding the organisational

environment helps you make sure your team supports your organisation’s

goals.

You should find appropriate sources of information and research what can

affect your team’s work. Make sure everyone in your team understands

why you work together, whom you serve, what is the goal, priorities,

risks and threats, future of the company.

Question 20:

A business model is a framework for how a company will create value.

As I consider every business as problem solving, business model helps to

get an insight on what problems you are going to solve and methods of

doing that.

Business plan revolves around the business model. Business plan

describes the future of the company, location, staffing, equipment,

strategies, etc.

Question 21:

Procter & Gamble is a multinational consumer goods corporation.

Key Partners Key Activities Value Proposition Customer Relationship Customer Segments
Investors, advertising Marketing, advertising, High quality products, little direct contact with Largest customer is
agencies, media, suppliers, R&D, manufacturing, reputation, customer its consumers, it sells Walmart (14% of total
sponsorships, retailers and epansion, branding, service, reliable supply through 3d-party retailers revenue), and other big
distributors design chain, distribution or online, it works directly retail groups.Its broad
operations. only with large customers variety of products can
like big supermarkets. satisfy all types of final
Available for customers consumers.
through customer
service, website, email,
social media and phone.

Key Recourses Channels

More than 100
manufacturing facilities in
40 countries,
partnerships, distribution
network, place in “worlds
most admired
companies”, brand
portfolio, employees

Cost Structure Revenue Streams

More than 100k employees, fixed costs like rent, utility.
Manufacturing nd sale of goods, has 5 segments: baby, feminine and
Cost of sale, manufacturing, logistics, R&D, storing, ads and marketing family care; beauty and personal care; health care; grooming; home
(11% of sales goes to advertising) care.