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A Review of the Nine Building Blocks
Business Model Generation
Business Model Generation
“a company's plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses.”
What is a business model?
www.nvestopedia.com/terms/b/businessmodel
Business Model Generation Canvas
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*The business model canvas is like a blueprint for strategy that can be implemented through organizational structures, processes, and systems.
Osterwalder & Pigneur (2010)
7
#1. Value propositions
“The value propositions building block describes the bundle of products and services that create value for a specific customer segment”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Value propositions
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Value propositions
What are we building and for who?
Who are your customers?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Why do customers move from one company to another?
Value propositions solve:
customer problems and
satisfy customer needs.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
There can be many value propositions, but each individual one caters to a specific customer segment
Some value propositions are new [disruptive] in nature, and others may be similar to existing market products or services [incumbent].
We discussed this in more detail in our strategy class on Blue Oceans.
Our Customers do not exist for us, we exist for our customers.
Aha
Questions that need to be answered are:
What value do we deliver to the customer?
Which of the customers problems are we helping to solve?
Which customer needs are we satisfying?
What bundles of products and services are we offering to each customer segment?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
“A value proposition creates value for a customer through a distinct mix of elements catering to the segments needs. They may be quantitative [price, efficient service] or qualitative [design, customer experience].”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Newness
Some value proposition satisfy needs that customers didn’t have prior or just weren’t offered. Nearly always, a good example would be in the technology field – cell phones.
Performance
A common way to create value through performance is improving your product. Again, looking at technology I would use the personal computer field as an example.
Computers are faster, more memory, more storage, better graphics.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Customization
Products that are tailored around a specific need of the individual customer. An example: concepts of mass customization and customer co-creation have gained importance. Lego will let you design your own product and they will custom make it for you.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Getting the job done
Helping customers to get certain jobs done creates value for the organization and customer. For example, we discussed Rolls-Royce. They are a multi-business model that produce cars, and more importantly a big revenue stream for them was producing jet engines that they lease out to airlines (Key Partners) for a fee per hour that the engine runs.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Design
Design is tricky because it is hard to measure. Products may stand out because they look good, or they fit the customer’s need. But it still makes design aspect hard to measure. Fashion industry and electronics.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Brand/status
Consumers like to wear a specific brand because it could be accepted as a status symbol. Rolex watches, Christian Louboutin shoes, Nike, or even new cell phones on the market.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Price
Price-sensitive customers are always looking for value in a product or service at the lowest possible price. However, this could have serious implications on the rest of the building model. Southwest Airlines, EasyJet have designed their whole business plan around economical low-cost airfare.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Cost reduction
An important way to create value is helping the customer reduce their costs. salesforce.com created a customer relationship management (CRM) application that is a way for companies to go paperless while tracking sales, expenditures and profit. It also helps with IT services.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Accessibility
Accessibility is a way to create value with customers that did not have previous access to products and services, such as business model innovation, and/or new technologies. A good example of this would be NetJets. Individuals and corporations could have access to private jets where previously they would have to own them or fly commercial.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different types of Value Propositions:
Convenience/usability
Creating value by making things more convenient and easier to use. iPod and iTunes are a great example. Consumers could buy, download and listen to digital music right from their devices
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Pause here to work on your Value Proposition
Continue when you are ready to proceed
#2. Customer Segments:
“Customer segments building block defines the different groups of people or organizations an enterprise aims to reach and serve”.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Customer Segments:
All the people and organizations you create value for. Who are they and what do they buy?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Important:
Customers do not exist to buy your goods or services, the organization exists for them.
Customer Segments:
*Customer groups represent different segments if:
Their needs require and justify a distinct offer
They are reached through different Distribution Channels
They require different types of relationships
They have substantially different profitabilities
They are willing to pay for different aspects of the offer*
*Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Questions that need to be answered are:
For whom are we creating value?
Who are our most important customers?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Examples of different elements of customer segments:
Mass-market
Models focused on mass markets don’t Differentiate between different customer segments. Value propositions, distribution channels, customer relationships all focus on one large group of customers with similar needs and problems.
Example: consumer electronics
Niche market
Target for niche markets are specific specialized customer segments. In this case, value propositions, distribution channels, and customer relationships are all specific to the requirements of the market.
Example: supplier-buyer relationships such as car part manufacturers who depend on major automobile manufacturers.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Segmented
These models distinguish market segments with a slightly different needs and problems.
Example: Credit Suisse
large group of customers that have assets of up to $100,000 US
a smaller group with a net worth of over $500,000.
Both have similar needs and problems, yet different.
Another example would be a microchip manufacture that would supply their product to the medical industry, industrial automation, watch, companies, and computers. (Slightly different VP).
Diversified
Serves two unrelated customer segments with different needs and problems. Amazon.com pulled back from the dead in 2006 by diversifying its retail business by selling Fulfillment by Amazon and Amazon web services - cloud computing services, online storage and on-demand server usage.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Multisided platforms
Serves two or more inter-dependent customer segments.
Credit card companies
Cardholders merchants
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Both are dependent on each other to make this model work.
Pause here to work on your Customer Segments
Continue when you are ready to proceed
3. Channels
“The channels building block describes how a company communicates with and reaches its customer segments to deliver a value proposition.”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Channels
How does your product get from your organization to the Customer.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Channels
In the mid 1990’s, there was only one channel and that was a physical building. Today, there are so many more ways to get your product to the customer:
Physical stores
Web services
Mobile
courier
Channels
Channels answer the following questions:
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Through which channels do our customers want to be reached?
How are we reaching them now?
How are channels integrated?
Which ones work best?
Which ones are the most cost-efficient?
How are we integrating them with customer routines?
Channels
There are five distinct phases of channels.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
There is a distinction between direct channels and indirect channels as well as between those that are owned and those that are partner channels
Partner (indirect) channels can lead to lower margins whereas direct (owned) channels lead to higher margins.
You need to find the right balance between the channels and integrate them to create the best customer experience.
Channels
There are five distinct phases of channels.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Channel phases
Pause here to work on your Channels
Continue when you are ready to proceed
4. Customer Relationships
“The customer relationships building block describes the types of relationships a company establishes with specific customer segments”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Customer Relationships
How do you get customers?
How do you keep your customers?
How do you grow your customers?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Customer Relationships
The company must clarify what type of relationship it wants with the customers.
For example; do they want:
personal relationship or automated relationship.
Points to consider here would be:
customer acquisition
customer retention
boosting sales [upselling]
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Customer Relationships
Customer Relationships answer the following questions:
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
What type of relationship does each of our customer segments expect us to establish and maintain with them?
Which ones have we established?
How costly are they?
How are they integrated with the rest of our business model?
Customer Relationships
Personal assistance
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Human interaction. The customer speaks to a live person. This can happen on site at the point-of-sale, through customer support centres, email, or other means.
Customer Relationships
Dedicated personal assistance
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
A customer representative is assigned personally to the individual client..
Customer Relationships
Self-service
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Individuals figure things out for themselves with no company relationship. This is very impersonal. However, the company does provide all the necessary means for helping customers.
Customer Relationships
Automated services
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
A more sophisticated type of self-service. Through metrics, the automated services recognize individual customer’s needs and characteristics. An example: personal online profiles.
Customer Relationships
Communities
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
A community of members available to the customer that allow users to exchange knowledge through what companies call a “knowledge-base” either live or through a search.
Customer Relationships
Co-creation
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
This allows the company and the customer to co-create value.
Amazon.com create value for aspiring authors.
YouTube.com works similar but they solicit customers to create content for public consumption.
Pause here to work on your Customer Relationships
Continue when you are ready to proceed
5. Revenue Streams
“The revenue streams building block represents the cash a company generates from each customer segment [costs must be subtracted from the revenues to create earnings].”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Revenue Streams
How do you make money from selling your products to customers?
What value is the customer paying for?
What’s the strategy to capture that value?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Revenue Streams
Customers are the heart of any business model. Without them, there would be no business.
Revenue streams are like the arteries that run from the heart.
If a company can answer what a customer is willing to pay for a product/service then they can generate revenue streams from this.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Customers
Revenue Streams
Revenue Streams
Revenue Streams
Revenue Streams
Two types of revenue streams are:
transaction revenues – the result of the one-time purchase
recurring revenues – the result of ongoing payments.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Revenue Streams
Questions that need to be answered are:
For what value our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How does each revenue stream contribute to the overall revenues?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Revenue Streams
Probably the most understood revenue stream that derives from selling ownership rights to a physical product.
Example: Amazon.com sells books, music, and consumer electronics, and more online.
Ford sells automobiles, which buyers are free to drive, resell if they Their choice.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Asset sale
Revenue Streams
Subscription fees
Selling continual access to a service.
Example monthly gym membership or in gaming, World of War craft online.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
User fee
The more you use a service, the more you pay.
Example: cell phone long distance minutes.
Hotels charging for a room by the night.
FedEx charges for package delivery services.
Revenue Streams
Licensing
This revenue stream gives customers permission to use a product or intellectual property of the owner in exchange for a fee. Example of this would be Norton antivirus, and many other software applications.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Lending/renting/leasing
Granting temporary rights to a specific asset for a specific amount of time.
Example Renting an apartment or leasing a vehicle.
Advertising
Revenue that result from advertising your product, service, or
Example: Most common is through the media either online, through radio, or television.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Brokerage fees
Income from services that are performed on behalf of two or more parties. example: credit cards. Money is earned from the merchant for a percentage of each sale [example 3%] goes to the company.
Revenue Streams
Fixed menu pricing – predefined prices based on static variables
Dynamic pricing – prices change based on the market conditions
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Pause here to work on your Revenue Streams
Continue when you are ready to proceed
6. Key resources
“The key resources building block describes the most important assets required to make a business model work.”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key resources
What do you need to make your business model work?
What’s the most important asset?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key resources
Key resources allow businesses to create their value propositions.
They also help reach the market and maintain relationships with customers.
They can be:
physical,
financial,
intellectual, or
human.
Key resources can be owned/leased by the company or even acquired by their key partners.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key resources
Question that needs to be answered is:
What key resources will our value proposition require?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key resources
All physical assets:
manufacturing facilities,
buildings,
vehicles,
machines,
systems,
point-of-sale systems,
distribution networks.
Example: Walmart relies heavily on physical resources (bricks and mortar buildings) which take a lot of capital to maintain. Amazon.com on the other hand is a web-based company and therefore their infrastructure leans heavily on IT, warehouse and logistics
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Physical
Key resources
Important components of intellectual resources include:
brands,
proprietary knowledge,
patents and copyrights,
partnerships,
customer databases.
Example: Nike depends heavily on their brand and their swoosh logo. Microsoft and Apple depend on software.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Intellectual
Key resources
Every company requires a human resources department. It’s a crucial and integral part of a business.
Novartis, a pharmaceutical company requires an army of scientists as well as skilled sales force and support staff.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Human
Key resources
Financial resources/guarantees such as:
cash,
lines of credit,
stock options
are all of importance for hiring the best employees.
Alternately, companies may secure cash through the above means to finance equipment.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Financial
Pause here to work on your Key Resources
Continue when you are ready to proceed
7. Key activities
“The key activities building block describes the most important things a company must do to make its business model work.”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key activities
Who are your Key partners and suppliers.
What do we require from our key partners?
What activities are they going to perform for us?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key activities
Key activities are the most important actions that a company must take to be successful.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key activities
Key activities are required to:
create and offer a value proposition,
reach the market,
maintain customer relationships, and
earn revenues.
They may differ depending on the type of business model. For Microsoft this would include software development. For Dell, this would include supply chain management, or who will sell your product. For consultants, it would include problem-solving.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key activities
Question that need to be answered is:
What key activities do our value propositions require?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key activities
Production activities relate to design, constructing, and delivering your product in substantial quantities and of superior quality
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Production
Problem solving
Key activities relate to solving new and existing problems and finding solutions for its customers. For example;
consultants,
hospitals,
service organizations;
they are all typically dominated by problem-solving activities.
Key activities
Platform/network
Matchmaking companies function as a platform. eBay is another example because it involves the company continually developing and maintaining their online platform. Visa is another example as it is required to keep their platform updated for merchants and customers as well as banks.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Pause here to work on your Key Activities
Continue when you are ready to proceed
8. Key partnerships
“The key partnerships building block describes a network of suppliers and partners that make the business model work.”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key partnerships
What are we getting from partners?
What activities are they going to perform?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Key partnerships
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Companies create alliances with their customers to reduce the risk or acquire additional resources.
Four different types of partnerships:
Strategic alliances – between non-competitors
Competition - strategic partnerships between competitors
Joint ventures - to develop new businesses
Buyer-supplier relationships - to assure reliable supplies
Key partnerships
Questions that need to be answered are:
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Who are our key partners?
Who are our key suppliers?
Which key resources are we requiring from partners?
Which key activities do partners perform?
Key partnerships
We need to distinguish between three motivations for creating partnerships:
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Optimization and economy of scale
It is not feasible for a company to own all its resources and activities. Therefore, companies must outsource or share their infrastructure and recourses to optimize their costs.
Example: Car manufacturers
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Reduction of risk and uncertainty
In the competitive environment partnerships can reduce risks. In this case, competitors form strategic alliances in one or more areas while maintaining a competitive nature.
Example: Blu-ray player development. Many of the companies banded together however individual members compete against each other to sell the product.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Acquisition of particular resources and activities
Very few companies own all the resources or perform other activities. Different companies/alliances will furnish particular resources or perform certain activities.
Example: iPhone or Samsung cell phones. The parent company, although they do direct sales, allow telecommunications providers (Telus, Rogers, etc…) to sell their products.
Pause here to work on your Key Partnerships
Continue when you are ready to proceed
9. Cost structure
“The cost structure describes all costs incurred to operate a business model.”
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Cost structure
In this building block we look at the most important costs that a company has while operating. Costs can be incurred by creating and delivering value, maintaining customer relationships, generating revenue, research and development.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Cost structure
Questions that need to be answered are:
What are the most important costs inherent to our business model?
Which key resources are most expensive?
Which key activities are most expensive?
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Cost structure
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Cost should be minimized as best as possible. However, low cost structures are more important for some business [Southwest Airlines] than others.
Two classes of cost structures:
cost-driven and
value-driven.
Cost driven
The focus is on minimizing costs where possible. Uses low price value propositions, automation, and extensive outsourcing. Example: Southwest, EasyJet typified this business model
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Value-driven
Focus is more on creating customer value rather than low cost. There’s a high degree of personalized service. Luxury hotels such as the Ritz-Carlton practice a value-driven cost structure.
Fixed costs:
Cost remains the same despite the volume of goods or services.
Example of this would be:
salaries,
rent,
mortgage,
buildings.
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Variable costs:
Costs that fluctuate with the volume of goods or services produced. An example of this would be:
supply and demand.
Economies of scale
Company saves more and earns more as its output expands.
Example: Costco. They buy in bulk and sell a certain number of units. The more they sell the more they make
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
Economies of scope
Cost advantages that businesses enjoy due to a larger scope of operations.
Example: (Gap) - larger companies that can use the same marketing activities for multiple products.
Pause here to work on your Cost Structure
Continue when you are ready to proceed
Summary
Osterwalder, A, & Pigneur, Y. (2013). Business model generation. Hoboken, NJ: Wiley.
The nine business model building blocks form a canvas that was created to represent a painters campus and allows you to paint pictures in each segment. It works best when it is printed large and groups of people can add to it. As we discussed in class, using Post-it notes, or board markers make it easy to follow.
Individual Final Paper 20%
Use an organization of your choice to analyze its 9 building blocks based on the Business Canvas Model.
Students are encouraged to link the Scaling Up text business principles with the Business Model Generation text. The paper should be supported by both research and student’s own perspectives on the organization. Paper will require a cover page and references.
Individual Final Paper Rubric
10% - Introduce your company briefly. Give a thesis statement.
Eg: In this paper I will show you how the Acme Plug Company utilizes the nine building blocks to …
70% - In your own words, explain what each or the 9 building blocks mean to you.
What element (or function/phase/mechanism) of the building block can you use as an example?
How the element fits with your company’s philosophy.
Show brief examples and tie them in from the Scaling Up (if possible) to support your work.
10% - Conclusion – Does the company utilize the building blocks sucessfully? Would you change anything the company does? What is your outlook on the building blocks.
10% - Grammar, APA & References - Read over your paper. Does it make sense? Where did you get your work from?
Individual Final Paper
Rubric
No more than 1 quote* per page. Use it wisely. I would prefer you paraphrase the quote and just cite where you got the knowledge.
*No more than a short sentence).
***Absolutely NO Wikipedia. I will deduct marks if I see it.
Individual Final Paper (Example from an A paper)
Customer Segments
Customer Segments are all the people an organization wants to serve either through its customers or business alliances (Osterwalder & Pigneur, 2010). As a luxury car representative, Porsche is constantly entering new market segments, and provides different and appropriate products or services for each market segment. Porsche uses two variables to determine which customers to target, including description elements and behavioral elements. According to a scholar's study, “Descriptive elements include demographics, psychology, and geography. Behavioral elements include personal responses to brands, uses, and interests” (Zoeller, 2018). Porsche focuses on a niche market of high-income customers. The characteristics of the high-income class consumer psychology are appreciating the prestige of the brand as well as the new and attractive vehicles Porsche produces.
Individual Final Paper (Example from an A paper)
Customer Segments
Customer Segments are the people an organization wants to serve either through its customers or business alliances (Osterwalder & Pigneur, 2010). As a luxury car representative, Porsche is constantly entering new market segments, and provides different and appropriate products or services for each market segment. Porsche uses two variables to determine which customers to target, including description elements and behavioral elements. According to a scholar's study, “Descriptive elements include demographics, psychology, and geography. Behavioral elements include personal responses to brands, uses, and interests” (Zoeller, 2018). Porsche focuses on a niche market of high-income customers. The characteristics of the high-income class consumer psychology are appreciating the prestige of the brand as well as the new and attractive vehicles Porsche produces.
Individual Final Paper (Example from an A paper)
Customer Segments
Customer Segments are the people an organization wants to serve either through its customers or business alliances (Osterwalder & Pigneur, 2010). As a luxury car representative, Porsche is constantly entering new market segments, and provides different and appropriate products or services for each market segment. Porsche uses two variables to determine which customers to target, including description elements and behavioral elements. According to a scholar's study, “Descriptive elements include demographics, psychology, and geography. Behavioral elements include personal responses to brands, uses, and interests” (Zoeller, 2018). Porsche focuses on a niche market of high-income customers. The characteristics of the high-income class consumer psychology are appreciating the prestige of the brand as well as the new and attractive vehicles Porsche produces.
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