BU121 Study Guide - Midterm Guide: Brand Loyalty, Market Segmentation, Emotional Intelligence
Document Summary
How companies can have the same product and different business models: business models affect strategy/way of operating (blueprint for the org. , gilette/manual razors vs. electric shavers. Both offer the same product (razor) but manual requires a purchase of handle, reoccurring purchase of heads. Business model patterns and examples: multi-sided platform. Value is created by facilitating interaction between two distinct but interdependent groups of customers. Network effect only have value if other groups are present. Visa two customer groups: customers and retailers. Without the retailers, customers have no incentive to use the visa, without customers, the retailers won"t have the machines. Visa gains revenue from each sale, and the rights/sale of machines to retailers: long tail. Selling multiple niche products, which sell infrequently (vs. selling a small number of products at a high volume) Netflix offers a large variety of movies to fit every need: free.
