BU121 Lecture Notes - Lecture 1: Ath, Gilette, Tael
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What a business model is: why companies with same product might have diff business models, ho(cid:449) a (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:271)usi(cid:374)ess (cid:373)odel affe(cid:272)ts ho(cid:449) it ope(cid:396)ates. Why it is important to understand your business model. 3 ways to make money in water filtration. Value proposition in q water = can charge customers for it. Value proposition in event = no thrown water bottles in the event. Model affects strategy/ways of operating: bluep(cid:396)i(cid:374)t des(cid:272)(cid:396)i(cid:271)i(cid:374)g ho(cid:449) a(cid:374) o(cid:396)ga(cid:374)izatio(cid:374) ope(cid:396)ates e. g. consumer reports and vogue (different customers & revenue model) Focus on selecting content readers willing to pay for vs selecting context to attract readers advertisers want to sell to e. g. movie theatres makes money on food. Sell tickets at cost and make profits on refreshments. Refreshment stand staffing, placement, and set up is critical long lines dissuade customers effi(cid:272)ie(cid:374)t staff, (cid:858)(cid:271)a(cid:374)ke(cid:396) st(cid:455)le(cid:859) li(cid:374)es, a(cid:374)d (cid:271)u(cid:455) ahead o(cid:374) app staff t(cid:396)(cid:455) to (cid:858)up sell(cid:859) to (cid:271)u(cid:374)dles.
