BUS 111W Lecture Notes - Lecture 2: Consumer Reports, Freemium, Adwords

• School: University of Waterloo
• Department: Business (Wilfrid Laurier University)
• Course: BUS 111W
• Professor: Laura Allen

Document Summary

Reflects the strategic decisions and trade-offs that entrepreneurs make to earn a profit. Product and business are not the same thing: ex. They are stories that explain how enterprises work. Represents a better way than the existing alternative. Element of a good story: precisely described characters, understanding the key players, plausible motivations, why would they buy, why would suppliers work with us, plot twists, what makes you different? (competitive advantage) Model affects strategy/ways of operating: ex. Consumer reports: subscription-based (focus on selecting content readers willing to pay for), very little advertising: ex. Vogue: advertising-based revenue model (selecting content to attract readers advertisers want to sell: both magazines deliver on their value prop, but their key activities vary, ex. Cinema: sell tickets at cost and make profits on refreshments: refreshment stand staffing, placement, and set up is critical long lines dissuade customers.