Evaluating Business Models

Front

What is the importance of regularly assessing a business model?

Back

Regular assessment allows an organization to evaluate the health of its market position and adapt accordingly, potentially leading to incremental improvements or serious interventions.

Front

What are the two types of assessments outlined in the text?

Back

1. Big picture assessment of Amazon.com’s online retailing model circa 2005. 2. Checklists for assessing strengths, weaknesses, opportunities, and threats (SWOT) of a business model.

Front

What was Amazon.com’s main strength in 2005?

Back

Amazon.com’s main strength was its extraordinary customer reach and huge selection of products.

Front

What was Amazon.com’s key weakness in 2005?

Back

The key weakness was weak margins due to selling primarily low-value, low-margin products.

Front

What approach did Jeff Bezos and his management team take for Amazon.com’s future?

Back

They aimed to grow the online retail business through customer satisfaction and efficient fulfillment, while also initiating growth in new areas.

Front

What are the three requirements for new initiatives at Amazon.com?

Back

1. Target underserved markets. 2. Be scalable with potential for significant growth. 3. Leverage existing Amazon.com capabilities.

Front

What is SWOT analysis?

Back

SWOT analysis is a tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

Front

How does SWOT analysis benefit business model assessment?

Back

It provides a structured way to assess both the overall business model and each of its nine Building Blocks.

Front

What are the four questions asked in SWOT analysis?

Back

1. What are your organization’s strengths? 2. What are your organization’s weaknesses? 3. What opportunities does your organization have? 4. What potential threats does it face?

Front

What is the significance of the Business Model Canvas in conjunction with SWOT analysis?

Back

The Business Model Canvas provides a structured discussion framework that complements SWOT analysis, allowing for focused assessment of a business model.