BU121 Chapter Notes - Chapter 1: Environmentally Friendly, Cost Driver
Document Summary
How a company will monetize its value from the product/service they are offering. Value network: community pf partners, suppliers and other members of the value chain with which the start-up does business. First two layers: activities employed to create value. Final layer: activities associated with capturing value by monetizing the business model. Benefit that the customer gets from the product/service; includes the product, price, relation and image. Ide(cid:374)tif(cid:455) a (cid:862)pai(cid:374)(cid:863) that is (cid:272)o(cid:373)(cid:373)o(cid:374) a(cid:373)o(cid:374)g people. Two parts when designing a value proposition: features, different aspects that the product/service has. Environmentally friendly packaging: benefits, benefit to retailer. Cost savings, revenue potential: benefit to end user. Not simply the user of the product/service. Must divide your customers into less broad and meaningful segments based on demographics, needs and buyer behaviours. Include market size, key influencers, significance of problem, technological risk. If you use an intermediary, they are your direct customers, and the end user is the beneficiary.
