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BUSINESS MODELS
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BUSINESS MODELS
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BUSINSSS MODELS
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BUSINESS MODEL
– Primary Activities:
-Inbound Logistics (receiving, storing, shipping);
-Operations (manufacturing);
-Outbound Logistics (warehousing, shipping finished
products);
-Marketing and Sales;
-Service.
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BUSINESS MODEL
• Potential Flaws of Business Models:
1. Misreading customers (e.g., Mobilestar Corp. , a pioneer in wireless
network system),
2. Utterly unsound economics (e.g. Iridium, a pioneer in satellite
telephone system).
Components of Effective Business Models:
1. Core strategy (How a firm competes),
2. Strategic Resources (How it acquires and use resources),
3. Partnership Network (How it structures and nurtures its network),
4. Customer interface (How it interfaces with customers).