BU121 Lecture Notes - Lecture 3: Business Model Canvas, Ebay, Alibaba Group
Document Summary
Some of the business model patterns that exist and how they work. The fundamental differences between for-profit and social business model canvases. The process for building your business model. The importance of considering the environmental context of your model and how to apply insights to your model. How to tell your business model story. Value is created by facilitating interactions between two or more distinct but interdependent groups of customers. Of value to one group only if the other groups of customers are also present -- and groups in value to the extent that it attracts more users -- network effect. Often solved by one segment subsidizing another. Examples: visa/mastercard (consumers and merchants), ebay (buyers and sellers), newspapers (readers and advertisers), video game consoles (game developers and players), At least one substantial customer segment is able to continuously benefit from a free-of-charge offer, financed by another part of the business model or by another customer segment.
