BU121 Study Guide - Midterm Guide: Value Proposition, Yield Management, Subscription Box
Document Summary
Swot- strengths and weaknesses in the internal environment relate to the opportunities and threats in the external environment. For example, if we look at men"s razors, electric shavers are one time sales where gillette razors sell the razor and make the money off the blades. Essentially both of these businesses provide the same thing, electric makes their money upfront. Another example is water filtration system (monthly fee, one time fee, event fees). Another example is subscription based magazines vs. advertising based magazines. They sell to either restaurants, event holders, or individual. (vogue). Focus on selecting content readers willing to pay vs. selling the magazine with ads that cater to the buyers. At a movie theatre, two obvious revenue models are concession and tickets. Movie theatres make a lot of money through concession, because movie prices. Just cover their costs, they drive profit from the snacks and combos etc.
