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?
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to analyse the current state – to see if improvements can be made
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to see if there is a gap in the market – this is obvious
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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?
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