Description
Students will write a 2500-3000 word (about 10 pages in the main body) properly formatted APA paper (including a title page and references page, but no abstract) that evaluates/assesses the overall effectiveness of the business model used by your organization. This is the third of three assignments that draws from your association with your organization. The previous two “canvas” assignments flow into this one. Identify one or more of the building blocks from the business model canvas where modification should be recommended. Be careful to avoid bias in determining the issue/problem identified by using the canvas. Do not merely critique, but contribute to your organization’s overall success. This paper should be the culmination of the overall work you have done with the business model canvas so that all the pieces go together.
Your final paper should include:
Your business model canvas – Post-It notes discussion/observations (week 2)—summarize this area, but provide the initial canvas.
Identification of theoretical/behavioral trends that you observe in the business model and organization (week 5)—summarize this, do not merely cut and paste.
Discussion of appropriate theory, metaphors, and frames with which to describe your business model in operation, as well as to identify areas needing improvement and how to get there.
Use of the Osterwalder/Pigneur text to evaluate and diagnose your organization’s business model, as well as an integration of the course materials into your writing and consideration.
Recommendations for improvements identified using the canvas, theories, and assessment tools used in this course. What are the expected outcomes.
Use eight scholarly sources besides our textbook (especially case studies) to undergird your assertions from peer-reviewed literature.
Thoroughly familiarize yourself with the assignment specs and ask questions if you are unsure of expectations.
The paper must have at least eight additional scholarly sources in addition to the course textbook. No abstract is necessary, but a title page and references page should be included. Write your paper in third person, even though you are writing about an organization that you are familiar with. To do this, write from the perspective of a scholar who observes and researches about the case. Therefore, first person should be avoided.
Upload your paper (.doc) in the assignment section for grading. Follow the Submissions Guidelines as listed in the Syllabus: The various assignments for this course should be submitted as Word.doc attachments in the Assignment section. Do not use macros or automatic referencing in your papers for this course. The auto features usually cause unforeseen problems in format. Plus, part of the evaluation of this paper involves your ability to write using the essentials of the APA style format. Each file OF YOUR WORK should be named in the following manner: Last name–truncated Week Number-Assignment name (abbreviated if necessary).
Unformatted Attachment Preview
Copyright 2010. Wiley.
All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law.
Can
EBSCO Publishing : eBook Collection (EBSCOhost) – printed on 9/29/2023 2:27 AM via AMERICAN PUBLIC UNIVERSITY SYSTEM
AN: 335366 ; Alexander Osterwalder, Yves Pigneur.; Business Model Generation : A Handbook for Visionaries, Game Changers, and Challengers
Account: s7348467.main.ehost
nvas
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The Business
Model Canvas
A shared language for describing, visualizing,
assessing, and changing business models
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14
Definition of a
Business Model
16
The 9 Building Blocks
44
The Business Model
Canvas Template
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14
Def_Business Model
A business model describes
the rationale of how an
organization creates, delivers,
and captures value
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15
The starting point for any good discussion, meeting,
This concept can become a shared language that
or workshop on business model innovation should
allows you to easily describe and manipulate business
be a shared understanding of what a business model
models to create new strategic alternatives. Without
actually is. We need a business model concept that
such a shared language it is diΩicult to systematically
everybody understands: one that facilitates descrip-
challenge assumptions about one’s business model
tion and discussion. We need to start from the same
and innovate successfully.
point and talk about the same thing. The challenge is
that the concept must be simple, relevant, and intui-
We believe a business model can best be described
tively understandable, while not oversimplifying the
through nine basic building blocks that show the
complexities of how enterprises function.
logic of how a company intends to make money. The
nine blocks cover the four main areas of a business:
In the following pages we oΩer a concept that allows
customers, oΩer, infrastructure, and financial viability.
you to describe and think through the business model
The business model is like a blueprint for a strategy
of your organization, your competitors, or any other
to be implemented through organizational structures,
enterprise. This concept has been applied and tested
processes, and systems.
around the world and is already used in organizations
such as IBM, Ericsson, Deloitte, the Public Works and
Government Services of Canada, and many more.
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[[
The 9 Building Blocks
CS
1 Customer
Segments
An organization serves
one or several Customer
Segments.
VP
CH
2 Value
CR
3 Channels
4 Customer
Value propositions
Relationships
are delivered to customers Customer relationships
It seeks to solve customer
through communication,
problems and satisfy
are established and
distribution, and sales
customer needs with
maintained with each
Channels.
value propositions.
Customer Segment.
Propositions
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17
R$
5 Revenue
Streams
Revenue streams result
from value propositions
successfully oΩered to
customers.
KR
KA
KP
C$
6 Key
7 Key
8 Key
9 Cost
Resources
Key resources are the
assets required to oΩer
and deliver the previously
described elements . . .
Activities
. . . by performing a number of Key Activities.
Partnerships
Some activities are
outsourced and some
resources are acquired
outside the enterprise.
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Structure
The business model
elements result in the
cost structure.
18
KA
Key Activities
KP
Key Partners
KR
Key Resources
C$
Cost Structure
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19
CR
Customer Relationships
CS
Customer Segments
VP
Value Propositions
CH
Channels
R$
Revenue Streams
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CS
1 Customer Segments
The Customer Segments Building Block defines
the diΩerent groups of people or organizations an
enterprise aims to reach and serve
Customers comprise the heart of any business model. Without
(profitable) customers, no company can survive for long. In order
to better satisfy customers, a company may group them into
distinct segments with common needs, common behaviors,
or other attributes. A business model may define one or several
large or small Customer Segments. An organization must make
a conscious decision about which segments to serve and which
segments to ignore. Once this decision is made, a business model
can be carefully designed around a strong understanding of
specific customer needs.
Customer groups represent separate segments if:
�� Their needs require and justify a distinct oΩer
�� They are reached through diΩerent Distribution Channels
�� They require diΩerent types of relationships
�� They have substantially diΩerent profitabilities
�� They are willing to pay for diΩerent aspects of the oΩer
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For whom are we creating value?
Who are our most important customers?
21
Diversified
An organization with a diversified customer business
model serves two unrelated Customer Segments
with very diΩerent needs and problems. For example,
in 2006 Amazon.com decided to diversify its retail
There are diΩerent types of Customer Segments.
business by selling “cloud computing” services: online
Here are some examples:
Segmented
storage space and on-demand server usage. Thus
Mass market
Some business models distinguish between market
it started catering to a totally diΩerent Customer
Business models focused on mass markets don’t
segments with slightly diΩerent needs and problems.
Segment—Web companies—with a totally diΩerent
distinguish between diΩerent Customer Segments.
The retail arm of a bank like Credit Suisse, for example,
Value Proposition. The strategic rationale behind this
The Value Propositions, Distribution Channels, and
may distinguish between a large group of customers,
diversification can be found in Amazon.com’s powerful
Customer Relationships all focus on one large group
each possessing assets of up to U.S. $100,000, and
IT infrastructure, which can be shared by its retail sales
of customers with broadly similar needs and problems.
a smaller group of aΩluent clients, each of whose net
operations and the new cloud computing service unit.
This type of business model is often found in the
worth exceeds U.S. $500,000. Both segments have
consumer electronics sector.
similar but varying needs and problems. This has
Multi-sided platforms (or multi-sided markets)
implications for the other building blocks of Credit
Some organizations serve two or more interdepen-
Niche market
Suisse’s business model, such as the Value Proposi-
dent Customer Segments. A credit card company, for
Business models targeting niche markets cater to
tion, Distribution Channels, Customer Relationships,
example, needs a large base of credit card holders
specific, specialized Customer Segments. The Value
and Revenue streams. Consider Micro Precision
and a large base of merchants who accept those credit
Propositions, Distribution Channels, and Customer
Systems, which specializes in providing outsourced
cards. Similarly, an enterprise oΩering a free news-
Relationships are all tailored to the specific require-
micromechanical design and manufacturing solutions.
paper needs a large reader base to attract advertisers.
ments of a niche market. Such business models
It serves three diΩerent Customer Segments—the
On the other hand, it also needs advertisers to finance
are often found in supplier-buyer relationships. For
watch industry, the medical industry, and the industrial
production and distribution. Both segments are
example, many car part manufacturers depend heavily
automation sector—and oΩers each slightly diΩerent
required to make the business model work (read
on purchases from major automobile manufacturers.
Value Propositions.
more about multi-sided platforms on p. 76).
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VP
2 Value Propositions
The Value Propositions Building Block describes
the bundle of products and services that create
value for a specific Customer Segment
The Value Proposition is the reason why customers turn to one
company over another. It solves a customer problem or satisfies
a customer need. Each Value Proposition consists of a selected
bundle of products and/or services that caters to the requirements
of a specific Customer Segment. In this sense, the Value Proposition is an aggregation, or bundle, of benefits that a company
oΩers customers.
Some Value Propositions may be innovative and represent a
new or disruptive oΩer. Others may be similar to existing market
oΩers, but with added features and attributes.
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What value do we deliver to the customer?
Which one of our customer’s problems are we helping
to solve? Which customer needs are we satisfying?
What bundles of products and services are we oΩering
to each Customer Segment?
A Value Proposition creates value for a Customer
for instance, created a whole new industry around
Customization
Segment through a distinct mix of elements cater-
mobile telecommunication. On the other hand,
Tailoring products and services to the specific
ing to that segment’s needs. Values may be quan-
products such as ethical investment funds have
needs of individual customers or Customer
titative (e.g. price, speed of service) or qualitative
little to do with new technology.
Segments creates value. In recent years, the
concepts of mass customization and customer
(e.g. design, customer experience).
Elements from the following non-exhaustive list
can contribute to customer value creation.
Performance
co-creation have gained importance. This approach
Improving product or service performance has
allows for customized products and services,
traditionally been a common way to create value.
while still taking advantage of economies of scale.
Newness
The PC sector has traditionally relied on this factor
Some Value Propositions satisfy an entirely new set
by bringing more powerful machines to market.
of needs that customers previously didn’t perceive
But improved performance has its limits. In recent
because there was no similar oΩering. This is often,
years, for example, faster PCs, more disk storage
but not always, technology related. Cell phones,
space, and better graphics have failed to produce
corresponding growth in customer demand.
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23
2
“Getting the job done”
Price
Value can be created simply by helping a customer
OΩering similar value at a lower price is a common
get certain jobs done. Rolls-Royce understands this
way to satisfy the needs of price-sensitive Cus-
very well: its airline customers rely entirely on Rolls-
tomer Segments. But low-price Value Propositions
Royce to manufacture and service their jet engines.
have important implications for the rest of a busi-
This arrangement allows customers to focus on
ness model. No frills airlines, such as Southwest,
running their airlines. In return, the airlines pay
easyJet, and Ryanair have designed entire business
Rolls-Royce a fee for every hour an engine runs.
models specifically to enable low cost air travel.
Another example of a price-based Value Proposi-
Design
tion can be seen in the Nano, a new car designed
Design is an important but diΩicult element to mea-
and manufactured by the Indian conglomerate Tata.
sure. A product may stand out because of superior
Its surprisingly low price makes the automobile
design. In the fashion and consumer electronics
aΩordable to a whole new segment of the Indian
industries, design can be a particularly important
population. Increasingly, free oΩers are starting to
part of the Value Proposition.
permeate various industries. Free oΩers range from
free newspapers to free e-mail, free mobile phone
Brand/status
Customers may find value in the simple act of using
and displaying a specific brand. Wearing a Rolex
watch signifies wealth, for example. On the other end
of the spectrum, skateboarders may wear the latest
“underground” brands to show that they are “in.”
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services, and more (see p. 88 for more on FREE).
25
Cost reduction
Accessibility
Helping customers reduce costs is an important
Making products and services available to custom-
way to create value. Salesforce.com, for example,
ers who previously lacked access to them is another
sells a hosted Customer Relationship management
way to create value. This can result from business
(CRM) application. This relieves buyers from the
model innovation, new technologies, or a combina-
expense and trouble of having to buy, install, and
tion of both. NetJets, for instance, popularized the
manage CRM software themselves.
concept of fractional private jet ownership. Using an
innovative business model, NetJets oΩers individu-
Risk reduction
als and corporations access to private jets, a service
Customers value reducing the risks they incur
previously unaΩordable to most customers. Mutual
when purchasing products or services. For a used
funds provide another example of value creation
car buyer, a one-year service guarantee reduces
through increased accessibility. This innovative
the risk of post-purchase breakdowns and repairs.
financial product made it possible even for those
A service-level guarantee partially reduces the
with modest wealth to build diversified investment
risk undertaken by a purchaser of outsourced IT
portfolios.
services.
Convenience/usability
Making things more convenient or easier to use
can create substantial value. With iPod and iTunes,
Apple oΩered customers unprecedented convenience searching, buying, downloading, and listening to digital music. It now dominates the market.
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CH
3 Channels
The Channels Building Block describes how a
company communicates with and reaches its
Customer Segments to deliver a Value Proposition
Communication, distribution, and sales Channels comprise a
company’s interface with customers. Channels are customer touch
points that play an important role in the customer experience.
Channels serve several functions, including:
�� Raising awareness among customers about a company’s
products and services
�� Helping customers evaluate a company’s Value Proposition
�� Allowing customers to purchase specific products and services
�� Delivering a Value Proposition to customers
�� Providing post-purchase customer support
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Through which Channels do our Customer Segments
want to be reached? How are we reaching them now?
How are our Channels integrated? Which ones work best?
Which ones are most cost-eΩicient? How are we
integrating them with customer routines?
Channels have five distinct phases. Each channel can
choose between reaching its customers through its
Partner Channels lead to lower margins, but they
cover some or all of these phases. We can distinguish
own Channels, through partner Channels, or through
allow an organization to expand its reach and benefit
between direct Channels and indirect ones, as well as
a mix of both. Owned Channels can be direct, such as
from partner strengths. Owned Channels and particu-
between owned Channels and partner Channels.
an in-house sales force or a Web site, or they can be
larly direct ones have higher margins, but can be costly
indirect, such as retail stores owned or operated by the
to put in place and to operate. The trick is to find the
Finding the right mix of Channels to satisfy how
organization. Partner Channels are indirect and span a
right balance between the diΩerent types of Channels,
customers want to be reached is crucial in bringing
whole range of options, such as wholesale distribution,
to integrate them in a way to create a great customer
a Value Proposition to market. An organization can
retail, or partner-owned Web sites.
experience, and to maximize revenues.
Channel Types
Channel Phases
Direct
Own
Sales force
Web sales
Indirect
Partner
Own stores
1. Awareness
How do we raise awareness about our company’s
products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase specific
products and services?
4. Delivery
How do we deliver a Value
Proposition to customers?
Partner
stores
Wholesaler
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5. After sales
How do we provide
post-purchase customer
support?
27
CR
4 Customer Relationships
The Customer Relationships Building Block
describes the types of relationships a company
establishes with specific Customer Segments
A company should clarify the type of relationship it wants to
establish with each Customer Segment. Relationships can range
from personal to automated. Customer relationships may be
driven by the following motivations:
�� Customer acquisition
�� Customer retention
�� Boosting sales (upselling)
In the early days, for example, mobile network operator Customer
Relationships were driven by aggressive acquisition strategies
involving free mobile phones. When the market became saturated,
operators switched to focusing on customer retention and increasing average revenue per customer.
The Customer Relationships called for by a company’s business
model deeply influence the overall customer experience.
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What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established? How costly are they?
How are they integrated with the rest of our business model?
We can distinguish between several categories of
Self-service
solve each other’s problems. Communities can also
Customer Relationships, which may co-exist in a
In this type of relationship, a company maintains no
help companies better understand their customers.
company’s relationship with a particular
direct relationship with customers. It provides all the
Pharmaceutical giant GlaxoSmithKline launched a
Customer Segment:
necessary means for customers to help themselves.
private online community when it introduced alli, a
new prescription-free weight-loss product.
Personal assistance
Automated services
This relationship is based on human interaction.
This type of relationship mixes a more sophisti-
standing of the challenges faced by overweight
The customer can communicate with a real customer
cated form of customer self-service with automated
adults, and thereby learn to better manage customer
representative to get help during the sales process or
processes. For example, personal online profiles give
expectations.
after the purchase is complete. This may happen on-
customers access to customized services. Automated
site at the point of sale, through call centers, by e-mail,
services can recognize individual customers and their
Co-creation
or through other means.
characteristics, and oΩer information related to orders
More companies are going beyond the traditional
or transactions. At their best, automated services can
customer-vendor relationship to co-create value with
Dedicated personal assistance
simulate a personal relationship (e.g. oΩering book or
customers. Amazon.com invites customers to write
This relationship involves dedicating a customer
movie recommendations).
reviews and thus create value for other book lovers.
representative specifically to an individual client. It
GlaxoSmithKline wanted to increase its under-
Some companies engage customers to assist with the
represents the deepest and most intimate type of
Communities
design of new and innovative products. Others, such
relationship and normally develops over a long period
Increasingly, companies are utilizing user communities
as YouTube.com, solicit customers to create content
of time. In private banking services, for example, dedi-
to become more involved with customers/prospects
for public consumption.
cated bankers serve high net worth individuals. Similar
and to facilitate connections between community
relationships can be found in other businesses in the
members. Many companies maintain online com-
form of key account managers who maintain personal
munities that allow users to exchange knowledge and
relationships with important customers.
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29
R$
5 Revenue Streams
The Revenue Streams Building Block represents
the cash a company generates from each Customer
Segment (costs must be subtracted from revenues to
create earnings)
If customers comprise the heart of a business model, Revenue
Streams are its arteries. A company must ask itself, For what value
is each Customer Segment truly willing to pay? Successfully
answering that question allows the firm to generate one or more
Revenue Streams from each Customer Segment. Each Revenue
Stream may have diΩerent pricing mechanisms, such as fixed list
prices, bargaining, auctioning, market dependent, volume dependent, or yield management.
A business model can involve two diΩerent types of Revenue Streams:
1. Transaction revenues resulting from one-time customer payments
2. Recurring revenues resulting from ongoing payments to either
deliver a Value Proposition to customers or provide post-purchase
customer support
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For what value are our customers really willing to pay?
For what do they currently pay? How are they currently
paying? How would they prefer to pay? How much does
each Revenue Stream contribute to overall revenues?
Subscription fees
of ownership. Zipcar.com provides a good illustration.
This Revenue Stream is generated by selling continu-
The company allows customers to rent cars by the
Asset sale
ous access to a service. A gym sells its members
hour in North American cities. Zipcar.com’s service
The most widely understood Revenue Stream derives
monthly or yearly subscriptions in exchange for
has led many people to decide to rent rather than
from selling ownership rights to a physical product.
access to its exercise facilities. World of Warcraft
purchase automobiles.
Amazon.com sells books, music, consumer electron-
Online, a Web-based computer game, allows users to
ics, and more online. Fiat sells automobiles, which
play its online game in exchange for a monthly sub-
Licensing
buyers are free to drive, resell, or even destroy.
scription fee. Nokia’s Comes with Music service gives
This Revenue Stream is generated by giving customers
users access to a music library for a subscription fee.
permission to use protected intellectual property in
There are several ways to generate Revenue Streams:
Usage fee
exchange for licensing fees. Licensing allows rights-
This Revenue Stream is generated by the use of a
Lending/Renting/Leasing
holders to generate revenues from their property with-
particular service. The more a service is used, the
This Revenue Stream is created by temporar-
out having to manufacture a product or commercialize
more the customer pays. A telecom operator may
ily granting someone the exclusive right to use a
a service. Licensing is common in the media industry,
charge customers for the number of minutes spent on
particular asset for a fixed period in return for a
where content owners retain copyright while selling
the phone. A hotel charges customers for the number
fee. For the lender this provides the advantage of
usage licenses to third parties. Similarly, in technology
of nights rooms are used. A package delivery service
recurring revenues. Renters or lessees, on the other
sectors, patentholders grant other companies the right
charges customers for the delivery of a parcel from
hand, enjoy the benefits of incurring expenses for
to use a patented technology in return for a license fee.
one location to another.
only a limited time rather than bearing the full costs
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31
5
Brokerage fees
This Revenue Stream derives from intermediation
Each Revenue Stream might have diΩerent pricing
services performed on behalf of two or more parties.
mechanisms. The type of pricing mechanism chosen
Credit card providers, for example, earn revenues
can make a big diΩerence in terms of revenues gener-
by taking a percentage of the value of each sales
ated. There are two main types of pricing mechanism:
transaction executed between credit card merchants
fixed and dynamic pricing.
and customers. Brokers and real estate agents earn
a commission each time they successfully match a
buyer and seller.
Advertising
This Revenue Stream results from fees for advertising
a particular product, service, or brand. Traditionally,
the media industry and event organizers relied heavily
on revenues from advertising. In recent years other
sectors, including software and services, have started
relying more heavily on advertising revenues.
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33
Pricing Mechanisms
Fixed Menu Pricing
Predefined prices are based on static variables
List price
Product feature
dependent
Dynamic Pricing
Prices change based on market conditions
Fixed prices for individual products, services,
Negotiation
Price negotiated between two or more partners
or other Value Propositions
(bargaining)
depending on negotiation power and/or negotiation skills
Price depends on the number or quality of
Yield management
Value Proposition features
Price depends on inventory and time of purchase
(normally used for perishable resources such as hotel
rooms or airline seats)
Customer segment
dependent
Volume dependent
Price depends on the type and characteristic
Real-time-market
of a Customer Segment
Price as a function of the quantity purchased
Price is established dynamically based on supply
and demand
Auctions
Price determined by outcome of competitive bidding
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KR
6 Key Resources
34
The Key Resources Building Block describes
the most important assets required to make a
business model work
Every business model requires Key Resources. These resources
allow an enterprise to create and oΩer a Value Proposition, reach
markets, maintain relationships with Customer Segments, and
earn revenues. DiΩerent Key Resources are needed depending on
the type of business model. A microchip manufacturer requires
capital-intensive production facilities, whereas a microchip designer
focuses more on human resources.
Key resources can be physical, financial, intellectual, or human.
Key resources can be owned or leased by the company or acquired
from key partners.
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What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Key Resources can be categorized as follows:
fully created may oΩer substantial value. Consumer
Financial
goods companies such as Nike and Sony rely heavily
Some business models call for financial resources
Physical
on brand as a Key Resource. Microsoft and SAP
and/or financial guarantees, such as cash, lines of
This category includes physical assets such as
depend on software and related intellectual property
credit, or a stock option pool for hiring key employ-
manufacturing facilities, buildings, vehicles, machines,
developed over many years. Qualcomm, a designer
ees. Ericsson, the telecom manufacturer, provides
systems, point-of-sales systems, and distribution
and supplier of chipsets for broadband mobile
an example of financial resource leverage within a
networks. Retailers like Wal-Mart and Amazon.com
devices, built its business model around patented
business model. Ericsson may opt to borrow funds
rely heavily on physical resources, which are often
microchip designs that earn the company substantial
from banks and capital markets, then use a portion of
capital-intensive. The former has an enormous global
licensing fees.
the proceeds to provide vendor financing to equipment
network of stores and related logistics infrastructure.
customers, thus ensuring that orders are placed with
The latter has an extensive IT, warehouse, and logistics
Human
infrastructure.
Every enterprise requires human resources, but
Ericsson rather than competitors.
people are particularly prominent in certain business
Intellectual
models. For example, human resources are crucial in
Intellectual resources such as brands, proprietary
knowledge-intensive and creative industries. A phar-
knowledge, patents and copyrights, partnerships,
maceutical company such as Novartis, for example,
and customer databases are increasingly important
relies heavily on human resources: Its business model
components of a strong business model. Intellectual
is predicated on an army of experienced scientists
resources are diΩicult to develop but when success-
and a large and skilled sales force.
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35
KA
7 Key Activities
The Key Activities Building Block describes
the most important things a company must do
to make its business model work
Every business model calls for a number of Key Activities. These
are the most important actions a company must take to operate
successfully. Like Key Resources, they are required to create and
oΩer a Value Proposition, reach markets, maintain Customer
Relationships, and earn revenues. And like Key Resources, Key
Activities diΩer depending on business model type. For software
maker Microsoft, Key Activities include software development.
For PC manufacturer Dell, Key Activities include supply chain
management. For consultancy McKinsey, Key Activities include
problem solving.
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What Key Activities do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue streams?
Key Activities can be categorized as follows:
Platform/network
Production
Business models designed with a platform as a Key
These activities relate to designing, making, and
Resource are dominated by platform or network-
delivering a product in substantial quantities and/or
related Key Activities. Networks, matchmaking
of superior quality. Production activity dominates the
platforms, software, and even brands can function as
business models of manufacturing firms.
a platform. eBay’s business model requires that the
company continually develop and maintain its plat-
Problem solving
form: the Web site at eBay.com. Visa’s business model
Key Activities of this type relate to coming up with
requires activities related to its Visa® cre
