BU121 Chapter Notes - Chapter 1: Consumer Reports, Crowdsourcing, Social Venture
Document Summary
Reflects the strategic decisions and trade-offs that entrepreneurs make to earn a profit. How your idea actually becomes a business: a product is the centre of a business model, but it is not a business in and of itself it can"t succeed without a great business model. Different companies can have similar offerings but different business models: example: shaving company"s sell the same product but offer different ways in which they structure their business. Disposable razors: virtually gives away the handle and makes its money selling a steady supply of razor blades. Companies that sell electric razors make their money with initial purchases: example: three ways to make money in water filtration, q water: rents water filtration systems for a monthly fee to restaurants. Value: new stream to charge customers for water instead of giving away water, which elevates consumer"s perception of the restaurant: aqua ova: sells water filtration systems with a stylish cooler for a one-time fee to individuals.
