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Customer value & Business model innovation - Business planning

4 important questions on Customer value & Business model innovation - Business planning

In order to target parts of markets, segmenting can be applied. How? What are key questions?

How to segment the market?
–Demography
–Occasion/situation
–User level
–Life style
–One or several factors?

Key questions
–Is the segment suitable for our positioning?
–How can we reach the segment?
–How fast can we reach the segment?
–How big is the segment?
–How is the segment changing?
–What competition is there in the segment?

What is the function of a business model?

The function of a business model is to:
–Articulate the value proposition
–Identify a market segment
–Define the structure of the value chain
–Estimate the cost structure and profit potential
–Describe the position of the firm in the value network
–Formulate the competitive strategy

What are typical questions during business model innovation?

–Can we change the value proposition (i.e. the offer to the customers)?
–Can some one else be our customer?
–Can we change the value chain?
–Can we change the value network (i.e. cooperate with other organisations to deliver the value)?
–Can we change the revenue model (i.e charge customers in a new way)?