CCT355H5 Lecture 8: Lecture 8

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Class 8: bmg: business model patterns and strategic factors. Large organizations = multiple models of operation y y unbundling helps understand of different business models operating simultaneously y three core business types innovation, customer relations, infrastructure management. Product innovation y enables early market entry y speed is key y premium products/pricing y creative talent as key resource. Customer relationship management y acquisition of new customers expensive aim to retain customers y high scope/high touch orientation customer comes first orientation. Infrastructure: y economies of scale to reduce fixed costs y. Low unit costs as priority transactional rationalization vs. customer relations or innovation y cost focus stressing standardization, predictability and efficiency. Long tail models: y mass vs niche market y profit through volume vs. profit through higher margins and specialization y often depends on customer segments. Multi-sided platforms: y different approaches to different customer segments y e. g.

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