Scribd
Upload
69 views4 pages

2025 R26 Module 26.1

The document outlines the essential elements and features of business models, including production, customer acquisition, pricing strategies, and differentiation from competitors. It discusses various pricing models such as tiered pricing, subscription models, and bundling, as well as alternative business models like private label manufacturing and licensing agreements. Additionally, it highlights concepts like network effects and crowdsourcing that can enhance product value.

Uploaded by

ahmedmohamed889889
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
69 views4 pages

2025 R26 Module 26.1

The document outlines the essential elements and features of business models, including production, customer acquisition, pricing strategies, and differentiation from competitors. It discusses various pricing models such as tiered pricing, subscription models, and bundling, as well as alternative business models like private label manufacturing and licensing agreements. Additionally, it highlights concepts like network effects and crowdsourcing that can enhance product value.

Uploaded by

ahmedmohamed889889
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Corporate Issuers

Business Model
Features and Types

Business Model Features and Types

Elements of a Business Model

 What will be produced?


 How will it be produced/provided? (key suppliers, expertise)
 Who are the potential customers? (size of market)
 Why will they buy? (who are competitors)
 How will customers be acquired? (at what cost)
 How will the product be priced, sold, and delivered?

1
© Kaplan, Inc.

1
Business Model Features and Types

Features of Business Models


Customers: B2B, B2C, governments
Differentiation from competing product/services—lower price,
premium quality, innovative solution
How to sell (channel strategy)
 Direct sales (e.g., physical location, online, trade shows,
direct mail, telemarketing)
 Through intermediaries (e.g., retailers, wholesalers
[perhaps value added], agents, franchisees)

2
© Kaplan, Inc.

Business Model Features and Types

Features of Business Models


Examples of key assets and suppliers
 Expertise
 Skilled employees
 Patents
 Software
 Suppliers—raw materials, outsourcing, possible
vertical integration

3
© Kaplan, Inc.

2
Business Model Features and Types

Pricing Models/Strategies
Pricing strategy examples
 Price discrimination
 Tiered, dynamic, or auction pricing
 Penetration pricing
 Freemium pricing
 Hidden revenue pricing

4
© Kaplan, Inc.

Business Model Features and Types

Pricing Models/Strategies
Strategies with multiple products
 Bundling
 Razors-and-blades
 Options/add-ons

5
© Kaplan, Inc.

3
Business Model Features and Types

Pricing Models/Strategies
Alternatives to outright sales
 Subscription model
 Licensing and franchising

Value proposition
 Customer’s perception vis-à-vis competitors
 Value chain: assets of the firm and firm activities that will
create value and exploit competitive advantage
6
© Kaplan, Inc.

Business Model Features and Types

Other Business Models


Here are other business models:
 Private label manufacturers: companies produce products
for others to market under their own brand name
 Licensing agreements: a company brand is used by another
company on its products for a fee
 Value-added resellers: offer such things as installation,
service, support, or customization

Network effects: the increase in the network value as it grows


Crowdsourcing: user input increases value of product
(e.g., Waze, open-source software)
7
© Kaplan, Inc.

You might also like