Chapter 1 – Understanding Business Models
1. Define Business Model
Defines how an org interacts with its environment to define a unique strategy, attract the
resources and build the capabilities required to execute the strategy and create value for the
A predictive forecasting tool
Forms the foundation for how executives make decisions about opportunities to pursue,
business to launch or buy, activities to perform, talent to hire and ways to organize to deliver
value to stakeholders.
2. Define strategy and different types of strategic positioning
Series of choices that determine the opportunities you pursue and the market potential of those
opportunities. It involves choices concerning products to sell, markets to enter and ways a
company differentiates its offerings from other alternatives.
o Market positioning – customers to serve, needs and expectations
o Product positioning – features of products and what prices
o Business network positioning – role an organization plays and the activities it performs
within an extended network of suppliers , producers, distributors and partners
o Boundary positioning – markets, products, and businesses that will NOT be pursued.
3. What are the two types of business models? (see appendix 1A)
Strategy audit – sustainable advantage – occurs when barriers exit that make it difficult for
competitors to imitate your actions or for customers to switch
o Assess business context – ‘what business are we in?’ demographic, economic, political,
regulatory and societal factors that influence.
o Analyze customers
o Analyze customers and substitutes
o Asses the business net