Segway Business Model

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MIT-IST

Segway
Aim for the sky, with the feet on the ground
Francisco Furtado 27 de Janeiro de 2009

Contents
Introduction .................................................................................................................................................. 2 Segway Business Model ................................................................................................................................ 2 Product and Value Proposition ................................................................................................................. 3 Costumer Interface ................................................................................................................................... 4 Target Customer ................................................................................................................................... 4 Distribution Channel ............................................................................................................................. 5 Relationship .......................................................................................................................................... 5 Infrastructure Management ..................................................................................................................... 6 Value Configuration .............................................................................................................................. 6 Capabilities ............................................................................................................................................ 6 Partnerships Network ........................................................................................................................... 7 Financial Aspects ....................................................................................................................................... 7 Revenue Model ..................................................................................................................................... 7 Cost Structure ....................................................................................................................................... 7 Aiming to high? Or to no were? .................................................................................................................... 8 Back to mother earth, but with an eye on the Sky ....................................................................................... 8 Renting and Sharing .................................................................................................................................... 10 Conclusion ................................................................................................................................................... 11 Bibliography ................................................................................................................................................ 11

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Introduction
The purpose of this report is to apply the Business Model concept and framework as a tool of analysis on a real case study, the Segway. We will start by describing the main features of the Segway LLC original Business model, to do this we will use the framework proposed by Ostenwalder, besides describing we will also deliver comments on all the relevant features. After this description we will make a synthesis of our comments, and focus on the main issues that lead to the failure to reach the initial stated objectives of the entrepreneurs behind the Segway business. In the fallowing section some remedies and suggestions will be made on how the Business Model can be improved. Then we will look into cases of business that provide use of products without ownership (like rentals and tourist services). In the end we will take some over all conclusions on the use of Business Model as a tool for managers, and some guidelines we can extract from the Segway...
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