MGMT 3710Entrepreneurial Foundations

The Business Model

Business Model

A firm’s plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value

The He rt of a Business Model

Resources

Capabilities

How It Chooses

To Function

…with a nod to competitors, suppliers, and most certainly customers!!

Pieces of the Business ModelMacro

Mission Statement

Product Linesand Brands

GeographicMarkets

Consumer Segments

CompetitivePositioning

Suppliers and Partners

Channels

Customer Support

Pieces of the Business ModelMicro Price per unit Overhead Start-up capital Profit per unit Predicted sales Breakeven point

Get Into Groups!!

Your mission, should you choose to accept it, is to think of

1. A company that has had a successful business model (cannot be Dell, Wal-Mart, or Southwest) and why it has been successful

2. A company that has had a not-so-successful business model and why it was not successful.