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Page | 4/6 | Date | 16.12.2020 | Size | 127.05 Kb. | | #54630 |
| BUSINESS MODEL BUSINESS STRATEGY - INDEXRevenue stream
The cash a company generates for each customer segment
2 types of revenue streams:
Transaction revenues resulting from one-time customer payments
Recurring revenues resulting from ongoing payments to either deliver a value proposition or provide post-purchase customer support
Ways to generate revenue streams:
Asset sale
Usage-free
Subscription fees
Lending/ renting/ leasing
Licensing
Brokerage fees
Advertising
Pricing mechanisms
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Fixed menu pricing
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Dynamic pricing
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List price
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Fixed price for individual products, services
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Negotiations
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Price negotiated between 2 or more partners depending on negotiating power/ skills
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Product feature dependent
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Price depends on the number or quality of features
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Yield management
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Price depends on inventory and time of purchase, used for perishable resources (hotels)
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Customer segment dependent
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Dependent on the type and characteristics of a customer segment
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Real time market
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Supply and demand
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Volume dependent
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Price as a function of quantity purchased
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Auctions
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Price determined by outcome of competitive bidding
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Key resources
Assets required to make the business model work
Categories:
Physical: physical assets, i.e. PP&E, distribution networks..
Intellectual: brands, proprietary knowledge, patents, copyrights, customer database
Financial: cash, lines of credit, stock option pools for employees
Human
Key activities
The most important things a company must do to make its business model work
Categories
Production: designing, making and delivering a product in substantial quantities/ superior quality
Problem solving coming up with new solutions to individual customer problems
Platform/ network
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