BU121 Lecture 1: Business Models
Document Summary
Readings: chapter 1- developing and testing a business model. Why companies with essentially the same product (good or service) might have di erent business models. How a company"s business model a ects how it operates. Why it is important to understand your business model & why business models fail. Nancially: re ects the strategic decisions and trade-o s that entrepreneurs make to earn a pro t , how your idea actually becomes a business, di erent companies can have similar o erings but di erent business models. Gillette gives away" the handle and makes its money selling a steady supply of razor blades. Companies that sell electric shavers make their money up front. 3 ways to make money in water filtration: q water: rents water ltration systems for a monthly fee to restaurants, customer segment: upscale restaurants. Impact of business model: model a ects strategy/ways of operating. Consumer reports: subscription based revenue model, with a little ad revenue.
