If you were to design a business model from scratch, you would have to make four decisions:
- What are the boundaries of my business, both vertically (the degree of integration along the value chain) and horizontally (the width of the portfolio of products offered and markets served)?
- What is the nature of the relationships between my business and parties outside the boundaries of my business, such as suppliers, customers and partners?
- Which assets and capabilities do I deploy to create value within my competitive environment in a unique and durable way?
- What are the economics of my business, i.e. the cost structure and pricing format that will enable me to extract value from my activities?
Authors: Henri de Bodinat, Herman Vantrappen, Michael Ungerath
Source: Bringing business models down to earth
Subject: Strategy Questions
Source: Bringing business models down to earth
Subject: Strategy Questions
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