Friday, July 08, 2005
Strategic management process
1. Where is the firm now concerning the internet?
2. Where does the firm go next?
3. How does it get there?
4. How does it implement the decisions to get there?
2. Where does the firm go next?
3. How does it get there?
4. How does it implement the decisions to get there?
Pricing Model
1. Fixed (menu) pricing
2. One-to-one bargaining
3. Auction
4. Reverse auction
5. Barter
6. Free
2. One-to-one bargaining
3. Auction
4. Reverse auction
5. Barter
6. Free
Profit Sites:
1. E-commerce
2. Content aggregators
3. Brokers/agents
4. Market makers
5. Service providers
6. Backbone operators
7. ISPs/OSPs
8. Last mile
9. Content creators
10. Software suppliers
11. Hardware suppliers
2. Content aggregators
3. Brokers/agents
4. Market makers
5. Service providers
6. Backbone operators
7. ISPs/OSPs
8. Last mile
9. Content creators
10. Software suppliers
11. Hardware suppliers
Revenue Model
Commission Model
Commission model relies on two factors:
1. Large volume of completed transactions to make the commission model worth while
2. To offset low volume with very expensive transaction
Commission – Intermediary – Brokerage
Advertising Model
Two ways:
Reaching broadest possible audience
Have a highly targeted and specialized audience.
Markup – based Model
Production – based Model
Refferral – based Model
Refferral – Affiliate – Click-through
Subscription – based Model
Fee-for-Service – based Model
Commission model relies on two factors:
1. Large volume of completed transactions to make the commission model worth while
2. To offset low volume with very expensive transaction
Commission – Intermediary – Brokerage
Advertising Model
Two ways:
Reaching broadest possible audience
Have a highly targeted and specialized audience.
Markup – based Model
Production – based Model
Refferral – based Model
Refferral – Affiliate – Click-through
Subscription – based Model
Fee-for-Service – based Model
Six Models
Complementary assets
Incremental/Radical dichotomy
Architectural innovation
Disruptive change
Innovation value – add chain
Technology life cycle
Incremental/Radical dichotomy
Architectural innovation
Disruptive change
Innovation value – add chain
Technology life cycle
Complementary Assets
Complementary assets are all other capabilities – apart from those that underpin the technology or invention – that the firm needs to exploit the technology.
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