First Four Elements of a Business Model
In order to understand whether a business model is effective, we need to be able to define a company or product line in the nine elements of the business model. We will apply these in assignments #1 and #3 for a specific company or product line, and present to the class for assignment #4. In the first assignment, we will choose a company or product line and apply the first four elements of the business model.
Choose a company or product line
From the following choices:
Electronic Arts: choose one of its gaming franchises (Battlefield or Sims series) Netflix
CBS Corporation (owns CBS and CW networks)
Def Jam Records
Universal Studios Islands of Adventure
An NBA team, such as the Chicago Bulls, Orlando Magic, LA Lakers, etc.
Cover the following sections with a header for each section:
REVIEW the text book and slides for the concepts applying to the first four elements. Research the product line or company and decide what information applies to each element.
1. Background Information
Write a narrative covering the following items in about 200 – 250 words total:
What is the main product line(s).
Division of the company that produced the product
Parent conglomerate, if applicable and how the product ‘fits’ within the larger company Time-frame when the product line was launched
Other similar product lines by the company
Technological or social forces that impact the product’s development Value of the franchise – sales, revenues, units sold, corporate valuation Brief history of the company or product line – previous versions, problems, successes
2. First Four Elements of the Business Model – Two Parts
A. Business Model Canvas outline:
First use the doc or spreadsheet version of the Business Model canvas to list the information for each element in short bullet points. (Type in the blocks). Think about what makes the company different or unique from its competitors. Be specific.
The bullets are now your points of reference to develop the narrative about each item.
B. Narrative paper: (about 150-200 words per section)
in narrative format, continue the narrative begun in the background section. Expand on the information about each ‘element’ by stating the bullet point, then writing several sentences that expand on the point with specifics and facts. -- Use a header in bold for each segment: (Customer Segments, Value Proposition, Channels and Customer Relationships). --Then list (as subheads) each bullet point from the canvas and expand on that point with facts, specifics and details. Cite sources for facts in short form in the paper.
What value is the product(s) providing the customers? Define in one overall sentence what makes this company or product unique from similar competitors. Then expand on that. (review the EBM Video “Value Proposition”.)
Consider: What bundles of products or services are being delivered to each customer segment – what are the product lines? What needs, desires or wants are being met? Is there a slogan that defines the company or product? Can you summarize the main value in a sentence?
Who are the target customers and what ‘problem’ does the product solve for them. Consider primary and secondary customers, their interests and demographics. For example, ESPN customers include both viewers (what are their demographics) and paying advertisers.
Through what channels are the various customer segments reached – primary and secondary? How are the products distributed? How cost-effective are the channels? How are the channels integrated with customer habits or routines? Are partners required to distribute the product line?
How is demand created for the product? How are relationships created and maintained with customers? How are these...