Patterns and Designs in Business Model Generation

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three fundamentally different types of businesses:
ocustomer relationship
build relationships w customers
oproduct innovation
develop new and attractive products
oinfrastructure
high volume repetitive
focus on only one of these three in a company
they can conflict with each other
ProductCustomerinfrustructure
economicsPremium priceHigh cost to acquire cust  get access to ppl’s wallet!High volume to get economies of scale CultureBattle for talent
Low barriers to entry
Small players thriveBattle for scope, consolidate, big players dominateBattle for scale, rapid consolidation, big players dominate CompetitionEmployee, coddle the superstarsService oriented, customer firstCost centered, standards and efficiency •long tail biz models: sell few niche items. Low inventory costs and have a strong platform to make it readily available to interested buyers oex customized legos

ooffer wide scope of “non hit” items.
oMaybe user generated content
oFocus on niche customers
oPlatform development is key and costs a lot
oInternet is used to maintain customer relationship and as the transaction channel •Multiplatform- intermediaries
oBring together two groups: only works if both sides come to the table oFacilitating interactions between different groups
oMore value happens when there are more people, creates a network effect obring together two or more distinct but interdependent groups of customers. okey is that the
oplatform must attract and serve all groups simultaneously
olure one segment to the platform with an inexpensive or free Value Proposition in order to subsequently attract users of the platform’s “other side.” oDifficulty: which side to subsidize
oEx. Xbox, google, facebook
Wii
Low cost
New untapped market
Double sided platform
oGenerate profit from platform and also get royalties from developers oFree- non paying customers are financed by another customer segment Supported by getting...
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