Business Models

What is a Business Model?

• A set of planned activities designed to result in profit

• A plan for personal financial growth

• A document describing a firm's business activities

• A strategy for investing in the stock market

What does a Business Plan describe?

• The company's marketing strategy

• The company's organizational structure

• The company's profit in the last fiscal year

• A firm's business model

What is the aim of an E-commerce Business Model?

• To increase physical store locations

• To decrease operational costs

• To use and leverage the unique qualities of the Internet

• To eliminate the use of digital marketing

What does a Value Proposition define?

• The company's investment in technology

• The company's stock value

• How a company's products or services fulfill customer needs

• The company's revenue in the digital market

What does a Revenue Model describe?

• The firm's employee salary structure

• How the firm will earn revenue and produce profits

• The firm's cost-cutting measures

• The firm's investment strategy

What is a Market Opportunity?

• An increase in market demand for a specific product

• A new technology in the market

• A company's intended marketspace and potential financial opportunities

• A decrease in market competition

What is Marketspace?

• A physical market location

• A business strategy

• A financial market

• Virtual selling space on the Internet where a business sells its products

What defines a Competitive Environment?

• The global economic environment

• A lack of market competition

• When other companies operate in the same marketspace selling similar products

• A company's internal competition

How is Competitive Advantage achieved?

• By hiring more employees

• Through extensive marketing

• When a business can produce a superior product and/or bring it to market at a lower price than competitors

• By increasing product prices

What is a Market Strategy?

• The plan detailing how to enter a new market and attract new customers

• A plan for personal investment

• A plan for hiring new employees

• A strategy for reducing operational costs