designing business models

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  1. WHAT DEFINITION OF BUSINESS MODEL DO YOU FIND MOST USEFUL AND WHY?

I actually find both versions of the business model very useful. The first model gives you the steps needed to make sure your product/ service will survive in the market. It allows you to identify the competition so you can create a business strategy that will hopefully give you a competitive edge. The second model is just as useful in a sense that it’s asking questions that make you think deeply about what your business will be about before it even starts. Making sure you have a good sense of what your targets and goals are before you jump right into it.

  1. WHAT ARE THE SIMILARITIES AND DIFFERENCES BETWEEN THE TWO TOOLS FOR DESIGNING BUSINESS MODELS?

Some similarities are that they both require the owner to really think about what their goals are for the business. They ask you questions regarding the competition making sure you come in to the fight with a plan.

The differences I noticed were that the first model was more broad whereas the second model asked very personal and in depth questions. Business model 2 really wanted you to know your business and what it’s going to be about, meaning it wanted you to know your goals and what’s special to your business.

  1. WHY WAS GREIF PACKAGING, DESCRIBED IN CHAPTER 2, ABLE TO CAPTURE MORE OF THE VALUE IN THE SUPPLY CHAIN? WHERE DID THE EXRA VALUE COME FROM, AND WERE THERE OTHERS WHO LOST THE VALUE THEY WERE SELLING?

They were able to capture more of the supply chain and bring in extra value because they adhered to their customers points of pain. The customers didn’t want to go through the struggle of buying the drums and then having to dispose of the chemicals themselves, Grief Packaging recognized this problem and came up with a solution to fix it, giving them a competitive edge over the competition.

  1. NAME THREE SIMILARITIES AND THREE DIFFERENCES BETWEEN A FRANCHISE AND A LICENSE.

Similarities: (a) Both are required to be very specific (b) The licensors and franchisor receive an income generated from the franchisee/licensee (c) Both can issue intellectual property right

Differences: (a) The licensee has more freedom when compared to the franchisee, they have less limitation placed on them (b) A licensee costs much less than a franchisee start up (c) A franchisee must continue to pay royalties to the franchisor as long as that business is running.

3 thoughts on “designing business models”

  1. Your post is concise yet to the point. I would love to hear you illustrate more on your understanding of the first definition of business model. Because you linked it with competitive advantage.

  2. Great post!
    I also find both version very useful although I like the first one a little more because it clearly states the steps that are needed in order for a company to create value and indicates in more detail the aspects that are important when companies examine business plans.

  3. Short, sweet and straight to the point. Great post, but I agree with the majority of the class that I favor model 1 a little more. It is better structure in the sense that it gives you a better walk through. Would you agree that it has a better structure ?

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