Want to keep learning?

This content is taken from the Coventry University's online course, Business Model Thinking. Join the course to learn more.

Why think about business in terms of models?

Why should we have a business model? What is the point of attempting to think about business in terms of models?

  • to analyse the current state – to see if improvements can be made

  • to see if there is a gap in the market – this is obvious

  • most important is to see if there is a ‘market in the gap’!

If we identify a niche, this is a first step. One of the most important stages is to analyse the ‘new idea’ for a number of critical factors.

Watch John Mullins, London Business School, talk about the differences between eBay and Amazon and how a very subtle change in a business model suddenly adds a huge amount of value.

This is an additional video, hosted on YouTube.

John Mullin’s conclusion that

‘moving electrons is really cheap’

is a very concise way of describing eBay’s business advantage.

Your task

Read the article 5 epic product fails and the lessons they can teach your small business (available on Entrepreneur’s website).

How do you think a simple model might have predicted these failures?

Share this article:

This article is from the free online course:

Business Model Thinking

Coventry University