BU121 Lecture 2: Business Models
Document Summary
A business model describes the rationale of how an organization creates, delivers, and captures value: how a company intends to make money/the logic by which it sustains itself financially. How you set up your business so that it makes profit, or for social entrepreneurship it can sustain itself: how your idea actually becomes a business. Gillette makes a little bit of money initially for the razor, but repeating sales through razor blades. Companies that sell electric shavers make their money up front. 3 ways to make money in water filtration. Event water solutions holders: customers are event holders, makes money in the middle, value proposition: environmentally friendly (no wastes/garbage on the ground) How the business will work: logic flows from the choice of your business model, makes sales through subscription fee. Vogue: makes revenue through advertising, as not concerned with the readers concerned about attracting readers that the advertisers want.
