BU121 Lecture Notes - Lecture 1: Freemium, Adwords, Videotelephony
Document Summary
Lecture 1: business models - from idea to business (jan. 9th 2017) Creates value, deliver that value and capture it (monetize) Logic behind how you are sustaining your business financially. Value chain: community of partners, suppliers, etc. The product/service itself is not the (cid:271)usi(cid:374)ess (cid:373)odel, it just (cid:272)a(cid:374)"t su(cid:272)(cid:272)eed (cid:449)ithout a good business model. Not just about revenue stream but about the customer and what they value and want. Example of same product, different business model: gillette razor vs. electric shaver, gillette razor makes money off their blades, will have to keep buying new blades, electric shaver charges more for it upfront (one-time purchase) Affects the busi(cid:374)ess" strategy a(cid:374)d (cid:449)ays of operati(cid:374)g. Advertising vs subscription based revenue model for magazines: subscription based magazines need to focus heavily on content in magazine, advertising in ads need to focus on the ads that connect with readers that advertisers want to sell to.
