Agenda

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Agenda

• Silence Cell Phones, Please!
• Q A
• Learning Objectives
• Chapter 6, Business Models
• Reminders

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Announcements

• Please Bring Me Your Phase 1 and Phase 2 For
  Preview!
• Webcourse
• Team Discussion Links
• Team Chat Rooms?

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Previously in Entrepreneurship

• Developed Innovative Business Concepts
• Learned How to Study Feasibility of Business
  Concepts
• Reviewed Phase 1 and Phase 2
• Phase 1 - Primary Market Research
• Phase 2 - Secondary Market Research

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Learning Objectives

• Identify Importance of Business Models
• Apply Value Chain
• Describe Four Components of a Business Model
• Apply Concepts to Feasibility Report

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Learning Objective 1Importance of Business Model

• Which Pizza Restaurant Was First to Deliver
  Pizza?
• How Did Decision Impact Company?
• What Other Business Does Something Uniquely
  Different Than Competitors?
• Can Your Business Offer Something Unique?

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Definition Business Model is

• Plan For How Your Business
• Creates Value By
• Competing Successfully
• Using Resources Effectively
• Structuring its Relationships
• Interfacing With Customers

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Durango Pro-Focus

• What is Their Business Model?
• Compete Successfully
• Use Resources Effectively
• Structure Relationships
• Interface with Customers
• How Can Duango Make Money in a Difficult
  Industry?
• How Does Durango Gain Respect of the Airlines Who
  Will Hire Pilots Trained by the Company?
• If You Were An Investor, Would you Invest in
  Durango? Why?

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Models Are Important Because

• Serve As On-Going Feasibility Study (Does
  Business Continue to Make Sense?)
• Focuses Attention on Key Elements
• Describes Why Network Partners Are Willing to
  Work Together
• Articulates Companys Core Logic

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Dominos Business ModelTeam Discussion

• What are Key Elements of Dominos Business Model?
• Who are Network Partners?
• What is Dominos Core Logic?
• Example Dominos Pizza http//phx.corporate-ir.ne
  t/phoenix.zhtml?c135383pirol-whydominos

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Learning Objective 2Apply the Value Chain

• Which Book Retailer Was First to Sell Books via
  the Internet?
• How Did Decision Impact Company?
• What Other Business Does Something Uniquely
  Different Than Competitors?
• Can Your Business Offer Something Unique?

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Value Chain (Page 166) Where Can You Add Value?

• Primary Activities
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing
• Service
• Support Activities
• Administration
• HR
• Technology
• Resource Procurement

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Where In Value Chain Does Dominos Add Value?

• Review Figure 6.2 on page 166.
• Half of Class Identify Dominos Primary
  Activities That Create Value
• Other Half of Class Identify Dominos Support
  Activities That Create Value
• Company Activity Create Your Value Chain

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Fatal Flaws Disaster!

• Completely Misread Customers
• Utterly Unsound Economics
• Skim or Read What Went Wrong? P. 170.
• What Was Their Flaw?
• How Can You Avoid Flaws?

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Who Uses A Dell Computer?

• What is Dells Core Strategy?
• What are Dells Strategic Resources?
• What Corporate Partners Does Dell Have?
• How Does Dell Interface with Customers?

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Learning Objective 3Components of Business Model

• Four Components of a Business Model Overview
• Core Strategy
• Strategic Resources
• Partnership Network
• Customer Interface

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Core Strategy (How a Firm Competes)

• Mission Statement
• Dominos http//www.dominos.com/Public-EN/SiteCon
  tent/Secondary/InsideDominos/
• Product/Market Scope
• Basis For Differentiation
• Cost Leadership
• Differentiation
• Company Activity
• Write Your Mission Statement
• Identify Product/Market Scope
• Determine Cost Leadership or Differentiation

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2. Strategic Resources/Assets

• Core Competency Unique Source of Firms
  Sustainable Competitive Advantage
• Strategic Assets
• Plant and Equipment Location Brands
  Patents
• Customer Data Staff
• Distinctive Partnerships
• Company Activity
• Identify Your Core Competency
• List Your Strategic Assets

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3. Partnership Network

• Suppliers Dominos http//www.dominos.com/Public-
  EN/SiteContent/Secondary/InsideDominos/Domino's
  Suppliers/
• Other Key Relationships
• Strategic Alliances
• Joint Ventures
• Trade Association
• Other Networks
• Company Activity
• Identify Key Suppliers and Other Partners

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4. Customer Interface

• Target Market
• Fulfillment and Support
• Pricing Structure
• Dominos http//www.dominos.com/Public-EN/SiteCon
  tent/Secondary/InsideDominos/PizzaParticulars/
• Company Activity
• Identify Target Market
• Review Fulfillment and Support

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Learning Objective 4 Apply Business Model to
Feasibility Report

• Which Sections?
• Product/Service Concept and Usability
• Marketability
• Target Customer Profile
• First Mover Advantage
• Market Timeliness
• Niche Market

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Exam 2 Prep

• Choose One Major Topic From Chapter 6
• Write Exam Question Answer on Topic
• Spokesperson Share With Class and Post in
  Webcourses Discussion Link

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Reminders

• Next Chapter 9
• Research, Research, Research!
• Network, Too!