Question 1
What is the Value
Proposition that your company or organization offers to solve customer problems
and satisfy their needs? Your response should address value proposition items
to include a distinct mix of elements catering to a customer segment’s needs.
Values may be quantitative, such as price or speed of service, or qualitative,
such as design or customer experience. Please respond with one paragraph.
Answer for Question 1
Value proposition
describes the bundle of products or services that create value for a specific
customer segment. Examples are such as what value do we deliver to the
customer? Which customer needs are we satisfying? And, what are we offering to
each customer segment? Value propositions exist in quantitative and qualitative
areas. Quantitative areas include price, cost reduction, risk reduction, convenience
and usability. Qualitative areas include newness, performance, design, brand, and
customization
Question 2
What are the
Customer Segments that your company or organization serves? Your response
should address customer segment items to include the needs and wants of
customers, distribution channels, types of relationships, different
profitabilities, and the customers' willingness to pay. Please respond with one
paragraph.
Answer for Question 2
Customer segments
define the different groups of people or organizations to serve. They have separate
segments if customer needs require and justify distinct offer, of if customer reached
through different channels, requires different types of relationships, are
willing to pay for different aspects, and have different profitabilities. Customer
segments may exist in different types. Mass market is one large group
comprising only one segment, niche market is specific, specialized customer
group, segmented is a slightly different customer groups, diversified is having
multiple unrelated customer segments and multi-sided markets.
Question 3
What Channels
does your company or organization utilize for communication, distribution, and
sales? Your response should address some or all of the five distinct channel
phases which include awareness, evaluation, purchase, delivery, and after
sales. Please respond with one paragraph.
Answer for Question 3
Channels describe
how a company communicates with and reaches its customer segments to deliver a
value proposition. Channels helps in raising awareness of the products and
services, helping customers evaluate the value proposition, allowing customers
to purchase, delivering a value proposition, and providing post-purchase
customer support. Channels demand consideration of key questions. For example,
through which channels do our customer segments want to be reached? How can we
integrate our channels? And, what measures define which channels work best?
Question 4
What are the
Customer Relationships that your company or organization plans to establish
with its customer segments? Your response should address customer relationships
that may include customer acquisition, customer retention, and upselling.
Please respond with one paragraph.
Answer for Question 4
A customer
relationship describes the types of relationships a company establishes with
specific customer segments. It is driven by motivations to include customer
acquisition, customer retention and upselling.
Question 5
What are the
Revenue Streams that your company or organization will generate? Your response
should address at least one of the following transaction revenues resulting
from one-time customer payments or recurring revenues resulting from ongoing
payments. Please respond with one paragraph.
Answer for Question 5
A revenue stream
represents the cash a company generates from each Customer Segment. Revenues minus
costs equals to profits. There are different types of revenue streams. The first
is transaction revenues resulting from one-time customer payments. Another type
is a recurring revenues resulting from ongoing payments to either deliver a
value proposition to customers and/or provide post-purchase customer support. Revenue
stream opportunities require you to ask several core questions. For what value
are customers really willing to pay? For what do they currently pay
(competitors)? And, how will this change in the future? Ways to generate
revenue streams includes buying (asset sale), renting, subscription, licensing
and advertising.
Question 6
What are the Key
Partnerships that your company or organization utilizes? Your response should
describe the company or organization’s network of suppliers and partners.
Examples of partnerships include strategic alliances, co-opetition, joint
ventures, and buyer-supplier relationships. Please respond with one paragraph.
Answer for Question 6
Key partnership describes
the network of suppliers and partners that make the business model work. There
are different types of partnerships which includes strategic alliances between
non-competitors, joint ventures to develop new businesses, buyer-supplier
relationships, and co-opetition which is a strategic partnership between
competitors. Several motivations to create partnerships includes optimization
and economy of scale, which is the most basic form of partnership or
buyer-supplier relationship designed to optimize resources and activities (i.e.
reduce cost). Another is an acquisition of particular resources and activities,
to extend capabilities by relying on other firms to furnish particular resources
or perform certain activities, and motivated by needs to acquire knowledge,
licenses, or access to customers. Lastly is to reduce risk and uncertainty.
Question 7
What Key
Resources are required to make the business model work? Your response should
address key resources that can be physical, financial, intellectual, and/or
human. Please respond with one paragraph.
Answer for Question 7
Key resources describe
the most important assets required to make a business model work. It can be
physical, financial, intellectual, or human. Key resources can be owned or
leased by the company or acquired from key partners.
Question 8
What are the Key
Activities your company or organization must perform? Your response should
describe the most important activities a company must perform to operate
successfully. Key activities will differ depending on type of business. These
activities may be outsourced or completed within the organization. Please
respond with one paragraph.
Answer for Question 8
Key activities
are the most important things a company must do to make its business model work.
For example, for PC manufacturer Dell, key activities include supply chain
management. And for consultancy McKinsey, key activities include problem
solving.
Question 9
What is the Cost
Structure of your company or organization? Your response should describe all
costs incurred to operate the business model. Two types of cost structures are
cost-driven and value-driven; many business models fall somewhere in between
these two models. Please respond with one paragraph.
Answer for Question 9
A cost structure is
all costs incurred to operate a business model. By creating and delivering
value, maintaining customer relationships, and generating revenue all incur
costs. Costs can be calculated relatively easily after defining key resources,
key activities, and key partnerships Cost-driven business models focus on
minimizing costs wherever possible. They aim at creating and maintaining the
leanest possible cost structure, using low price value propositions, maximum
automation, and extensive outsourcing. Value-driven companies are less
concerned with the cost implications, and instead focus on value creation. They
offer premium value propositions and a high degree of personalized service usually
characterize value-driven business models.
