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Title: ENT200 HULT Rukare Business Models Table
Description: On the quizz 1, questions about the different business models will be asked: this table summarizes everything to know. No need to take notes during Rukare's class.
Description: On the quizz 1, questions about the different business models will be asked: this table summarizes everything to know. No need to take notes during Rukare's class.
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The Long Tail
Unbuilding business
Model
Multi-sided platforms
Free as a Business
Model
Open Business Models
Context
(before)
The value proposition
targets only the most
valuable clients
An integrated model
combines infrastructure
management, product
innovation, and Customer
Relationship under one
Roof
...
R&D resources and Key Activities
are concentrated in house:
- ideas are invented inside only
- results are exploited inside only
Challenge
Targeting less profitable
segments with specific
Value Proposition is too
costly
Costs are too high
...
Enterprise fails to
acquire potential of new
customers who are
interested in gaining
access to a company
customer base (game
developers who want to
reach controls users)
...
R&D is costly and/or productivity is
failing
Solution
(after)
The new Additional Value
Proposition targets a
large number of
historically less
profitable, niche
Customers segments,
which in aggregate are
profitable
...
Internal R&D resources and
Activities are leveraged by utilizing
outside partners
...
Rationale
IT and operations
management
improvements allow
delivering tailored value
proposition to a very
large number of new
customers at low costs
...
An intermediary
operating platform
between 2 or more
customers Segments
adds Revenue streams
to the initial mode
...
Acquiring R&D from external
sources can be less expensive,
resulting in faster time-to-market
...
Examples
Publishing industry
LEGO
Private Banking
Mobile Teleco
Nintendo
Apple
iTunes
Advertising and
newspapers: Metro, Flickr,
Open Source, Red Hat,
Skype, …
GSK
Title: ENT200 HULT Rukare Business Models Table
Description: On the quizz 1, questions about the different business models will be asked: this table summarizes everything to know. No need to take notes during Rukare's class.
Description: On the quizz 1, questions about the different business models will be asked: this table summarizes everything to know. No need to take notes during Rukare's class.