BU121 Lecture Notes - Lecture 1: Subscription Box, Main Source, Price Point
Document Summary
What is a business model? sustains itself financially. How a company intends to make money/ the logic by which it to determine how that will create profits: if you are a for-profit business, one thing to have a product/service in mind, different thing. How your idea actually becomes a business that makes money / Different companies have different business models but similar: ex. Dell computers dell didn"t come up with a different social venture that is sustainable offerings product but began the idea of mass customization (different model) Model affects strategy/ ways of operating: blueprint of how the organization operates, what the costs are, how the revenue will flow. Examples - 3 ways to make money in water filtration. Q water: rents water filtrations for monthly fee, targets restaurants, recurring revenue model, value proposition customers are willing to pay for it, filtered and fancy (can charge customers more)
