ES 212 Lecture Notes - Lecture 2: Cash Flow, E-Book, Switching Barriers
1 Feb 2017
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Business model: stories that explain how enterprises work. 2) selling something: addresses the defining conditions of entrepreneurship. Platform/network: partnerships-third party suppliers and partners that make business model work, cost structure-all costs incurred to operate a business model, technology and operations management, go to market plan, profit formula, ex) coffee business models. Starbucks-coffee already made, found in grocery stores, more expensive. Dunkin donuts-price structure differentiates, blue collar communities. Business models: mvp-minimum viable product and then fix later. Ex) company that launched with minimum viable product apple with ipod. Drop box: first mover (move into market place before anyone, no competition) vs second mover. Myspace facebook: network effects-product gains value with more users. Fax machine-worthless without network to fax each other. Uber-more ppl that use it, the more drivers and popularity: switching costs. Apple-different chargers, phone, case, contracts: vertical integration-company owns parts of distribution chain. Farmers market grow it themselves, distribute, and sell: intellectual property. Patents gives you ownership over invention.
