Google hoosting online word documents instead of microsoft word hosted on computers. This means people will have access to their documents where ever they may be. UK E-commerce websites are doing better than US. Business Models, Revenue Models, Direct Response, Value Proposition. Target Customer has needs-> Value Proposition-> Matches -> Capabilities -> enable ->Value Proposition -> value for-> Target Customer.
Ipod all your music on the go. Customers wanted this. Customers of Ipods are everyone. Apple has a 200% mark up meanwhile bestbuy is making a 5% markup on the ipod.
Functions of Business Models- Articulate Value Proposition-Why is it needed? -Identify target market segment. -Define structure of value chain-How you sell it? -Define cost structure & Profit Potential. -Explain position in value network. -Set forth competitive Stategy. Not Direct Comp. Bose.
Ipod Exclusive deals on flash memory. Expanding the segment. Accesories for Ipod high margin.
Example of Business Model. Kindle: Amazon wireless reader.
1- Value Proposition- Get a book under a minute easy access to 170,000 library . automatically downloads newspaper. 200 Books at a time. Email word documents to the Kindle. Wifi works of cell phone. 2-Target Market- young urban professionals. 3- Structure of Value of Chain- Amazon Sells it, customer relationship, Ad on Amazon.com, everyone sees it when they sign on to the website. 4- Cost Structure & Profit Potential- $359.99 High Profit Margin Ave Book Price is around 10 bucks.