Business Model Analysis ICS

Business Model Analysis ICS - Developing an Effective...

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Developing an Effective Business Model
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Build a team Build a team The Entrepreneurial Process Recognize and  Recognize and  opportunity opportunity Evaluation Evaluation Write a Business Plan Write a Business Plan Get to work! Get to work! Develop a Business  Develop a Business  Model Model
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What is a Business Model? A firm’s business model is its plan or diagram for  how it competes, uses its resources, structures its  relationships, interfaces with customers, and creates  value to sustain itself on the basis of the profits it  generates. The term “business model” is used to include all  the activities that define how a firm competes in the  marketplace.
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Dell’s Business Model It is important to understand that a  firm’s business model takes it beyond  its own boundaries.  Almost all firms  partner with others to make their  business models work.  In Dell’s  case, it needs the cooperation of its  suppliers, shippers, customers, and  many others to make its business  model possible.
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Dell’s Business Model
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Toyota
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Timing The development of a firm’s business model follows the  feasibility analysis stage of launching a new venture but  comes before writing a business plan. If a firm has conducted a successful feasibility analysis and  knows that it has a product or service with potential, the  business model stage addresses how to surround it with a  core strategy, a partnership network, a customer interface,  distinctive resources, and an approach to creating value that  represents a viable business.
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Importance of the Business Model  Serves as an ongoing extension of feasibility analysis.   A business model continually asks the question “Does this  business make sense?”  Focuses attention on how all the elements of a business  fit together and constitute a working whole.  Describes why the network of participants needed to  make a business idea viable are willing to work together.  Articulates a company’s core logic to all stakeholders,  including the firm’s employees.
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How Business Models Emerge The Value Chain The value chain is the string of activities that moves a product 
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This note was uploaded on 09/26/2011 for the course ICS 394 taught by Professor Papabithini during the Winter '10 term at DePaul.

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Business Model Analysis ICS - Developing an Effective...

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