Entrep. CH. 4

• Business model


  Defines the foundation of a company's core value proposition targeting customers, key resources, and assumed revenue streams
• Different types of business models

  • Manufacturer
  • Distributor
  • Retailer
  • Direct sales
  • High touch
  • Franchise
  • Family owned
  • Brick and mortar
  • Bricks and clicks
• Key partners


  • Network of suppliers and partners that may provide the business model more effective
  • Entrepreneurs could partner with other businesses, governmental, or non-consumer entities that can help the business model work
  • Strong partnerships could be a tool to a business success
• Key activities


  • Marketing
  • Sales
  • Design
  • Development
  • Operations
  • Distribution
  • Customer experience
• Key resources


  • Physical (equipment, machines, inventory, buildings, vehicles, manufacturing plants, distribution networks)
  • Intellectual (brand, patents, proprietary knowledge, copyrights, partnerships, customer lists, customer knowledge, company's own people)
  • Human (employees, service representatives, software engineers, scientists)
  • Financial (cash, lines of credit, stock option plans)
• Customer value proposition (CVP)

  Description of the user experiences that they will come to realize upon buying and using the product
• Types of customer value proposition

  • Functional value (solution to a problem, convenient, better, easier to use, more complete)
  • Emotional value (pleasant, attractive, sentimental, traditional, advice-based)
  • Economic value (financial advantage, energy conservation, time saving, innovative)
  • Symbolic value (status, social responsibility, brand sophistication, casualness, extravagance)