UNDERSTANDING YOUR BUSINESS MODEL & DEVELOPING
Description: UNDERSTANDING YOUR BUSINESS MODEL DEVELOPING STRATEGY Chapter 5 Your first steps are to Select a business model Determine a basic strategy category Differentiation Low cost Niche Zacharakis, Bygrave Corbett, Entrepreneurship, New York:
Related Topics
Download Presentation
"UNDERSTANDING YOUR BUSINESS MODEL & DEVELOPING" is the property of its rightful owner. Permission is granted to download and print the materials on this website for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentation Transcript
slide1. UNDERSTANDING YOUR BUSINESS MODEL & DEVELOPING STRATEGY
Chapter 5<br>
slide2. Your first steps are to… Select a business model
Determine a basic strategy category
Differentiation
Low cost
Niche Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 2<br>
slide3. Create your business model Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 3<br>
slide4. Amazon’s revenue & cost model requires high volume Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© Other Revenue
Media
Electronics & Merchandise
Cost of Sales
Operating Expenses 4<br>
slide5. Be First (or very early) into the Market
Quickly Capture a Large % of the Market
Create Switching Costs To Succeed as a First Mover, Entrepreneurs Must… First movers rarely win and its an expensive strategy to take Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 5<br>
slide6. First Mover’s are Often Surpassed Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 6<br>
slide7. To win, your strategy must be to be one, or more, of these… Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 7<br>
slide8. Your People are your Advantage Founders need to create a culture and align the employees they select with the values and structure of the company Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 8<br>
slide9. Benchmark Devise Initial Market Test Create a Platform Develop your Entry Strategy Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 9<br>
slide10. Benchmark your Competition: The JetBlue Example Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 10<br>
slide11. Growth Strategy Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© New ventures should focus on testing the market and refining the business model; however, it is never too early to start thinking about growth. 11<br>
slide12. Franchising has 3 main benefits Replicability
Established and proven methods
New sources of revenue
Royalties and fees from franchisees
New capital to fund growth Franchising works best with service businesses that are easy to replicate. Be sure to monitor franchisees to maintain brand purity. Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 12<br>
slide13. Source: The 20 most successful Fast Food Chains in America, Business Insider, August 8, 2015 Top 10 US Franchisors Perform Well Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 13<br>
slide14. Tangential & Adjacent Products
What new products make sense with your current offerings? Current customers?
Spread Existing Costs over Larger Product Base
Accelerate Revenue Faster than Increase in Costs
Leverage your Firm’s Experience
Distribution Channels
Supplier Relationships
Customer Relationships Drive Growth with Product Mix Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 14<br>
slide15. Customers
Go where they are
Mimic proven success strategies
Vendors
Can you use the same vendors?
Any new costs? Leverage volume for better pricing
Distribution
Same channels?
Leverage volume Consider these 3 topics before expanding geographically: Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 15<br>
slide16. There are 8 basic ways to expanded internationally Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 16<br>
slide17. International expansion has risks Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 17<br>
slide18. Recap Determine revenue and cost structure
Choose a strategy
Create a culture
Seek and select people who fit culture and goals
Plan entry approach, including benchmarks
Plan growth drivers Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 18<br>
Chapter 5<br>
slide2. Your first steps are to… Select a business model
Determine a basic strategy category
Differentiation
Low cost
Niche Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 2<br>
slide3. Create your business model Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 3<br>
slide4. Amazon’s revenue & cost model requires high volume Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© Other Revenue
Media
Electronics & Merchandise
Cost of Sales
Operating Expenses 4<br>
slide5. Be First (or very early) into the Market
Quickly Capture a Large % of the Market
Create Switching Costs To Succeed as a First Mover, Entrepreneurs Must… First movers rarely win and its an expensive strategy to take Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 5<br>
slide6. First Mover’s are Often Surpassed Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 6<br>
slide7. To win, your strategy must be to be one, or more, of these… Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 7<br>
slide8. Your People are your Advantage Founders need to create a culture and align the employees they select with the values and structure of the company Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 8<br>
slide9. Benchmark Devise Initial Market Test Create a Platform Develop your Entry Strategy Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 9<br>
slide10. Benchmark your Competition: The JetBlue Example Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 10<br>
slide11. Growth Strategy Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© New ventures should focus on testing the market and refining the business model; however, it is never too early to start thinking about growth. 11<br>
slide12. Franchising has 3 main benefits Replicability
Established and proven methods
New sources of revenue
Royalties and fees from franchisees
New capital to fund growth Franchising works best with service businesses that are easy to replicate. Be sure to monitor franchisees to maintain brand purity. Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 12<br>
slide13. Source: The 20 most successful Fast Food Chains in America, Business Insider, August 8, 2015 Top 10 US Franchisors Perform Well Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 13<br>
slide14. Tangential & Adjacent Products
What new products make sense with your current offerings? Current customers?
Spread Existing Costs over Larger Product Base
Accelerate Revenue Faster than Increase in Costs
Leverage your Firm’s Experience
Distribution Channels
Supplier Relationships
Customer Relationships Drive Growth with Product Mix Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 14<br>
slide15. Customers
Go where they are
Mimic proven success strategies
Vendors
Can you use the same vendors?
Any new costs? Leverage volume for better pricing
Distribution
Same channels?
Leverage volume Consider these 3 topics before expanding geographically: Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 15<br>
slide16. There are 8 basic ways to expanded internationally Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 16<br>
slide17. International expansion has risks Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 17<br>
slide18. Recap Determine revenue and cost structure
Choose a strategy
Create a culture
Seek and select people who fit culture and goals
Plan entry approach, including benchmarks
Plan growth drivers Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© 18<br>