Picking the right business model Leigh Marriner Added Value Cheskin July, 2013
Oct 29, 2014
Picking the right business modelLeigh Marriner
Added Value Cheskin
July, 2013
ConfidentialApril 7, 2023 2
How to analyze a business modelV
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Who pays us?
What do our costs depend on?
How does the way we are organized affect what
we can do?How do we work with
external firms?
What particular capabilities do we have?
Who are our target(s)?
What are we offering? What channels do we use?
What customer needs do we satisfy?
ConfidentialApril 7, 2023 3
What is tricky about changing your business model?
Convincing the organization that fundamental change is needed
CEO setting bold ambition for growth
Commitment to do whatever it takes
Communication with leadership team and board before starting
Coming up with breakthrough ideas (vs. old favorites)
Ensure engagement across entire team
Ideate together to uncover new ideas
Focus on creative exercises to uncover bold ideas
Mobilizing the right team for the project
Bring in champions and naysayers
Highlight any overlap with other initiatives and include reps in leadership team
Put other initiatives on hold until fundamental redesign is ready
Key challenges
Key success factors
ConfidentialApril 7, 2023 4
Razer and gaming miceV
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Who are our target(s)?
What channels do we use?
Razer was founded by a couple of gamers with clear positioning − to be the world's greatest gaming brand. Logitech was the
industry leader in mice, and is now #2.
Razer played up its gamer origins –” We are the same gamers who are told by the suits that we need adult supervision.”
Built volume based on w-o-m rather than distribution muscle and ads.
ConfidentialApril 7, 2023 5
Google and big data testing of new ideasV
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What do our costs depend on?
How does the way we are organized affect what
we can do?
What particular capabilities do we have?
What are we offering?What customer needs
do we satisfy?By testing new concepts by watching how customers actually used them, Google totally disrupted the traditional business model. Google spent very little
on market research. They were able to use their own capabilities to get better feedback on concepts.
Being a flat organization, small groups could test ideas w/o a long approval process.
Competitors were much slower.
ConfidentialApril 7, 2023 6
Lyft and taxisV
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What do our costs depend on?
Who are our target(s)?
What are we offering? What channels do we use?
Lyft upset the traditional taxi business model by offering a revenue source to car owners. Lyft had no car or driver
expenses. All pickup requests
were online, matching the preferences of its target younger audience.
They offer a much more friendly, personal service.
ConfidentialApril 7, 2023 7
Zipcar and auto rentalsV
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Who are our target(s)?
What are we offering? What channels do we use?
Zipcar positions itself as a car sharing service, rather than car rental. It is targeted to a
younger demographic, which don’t qualify for car rentals.
It rents by the hour or day.
It appeals to those who want to consume less of the planet’s resources.
Now, how can you grow your business?