THE BUSINESS MODEL CANVAS WITH THE BEST QUESTIONS AND ACCURATE ANSWERS

THE BUSINESS MODEL CANVAS WITH THE BEST QUESTIONS AND ACCURATE ANSWERS What are the 9 building blocks of the business model canvas? - CORRECT ANSWER1. Customer segments 2. Value Proposition 3. Channels 4. Customer Relationships 5. Revenue 6. Key Resources 7. Key Activities 8. Key Partnerships 9. Cost Structure *Customer Segments* - CORRECT ANSWER-The different groups of people or organizations the enterprise aims to reach and serve Customer Segment Type: Mass Market - CORRECT ANSWER-One large group of customers with broadly similar needs and problems ex) consumer electronics Customer Segment Type: Niche Market - CORRECT ANSWER-Specific, specialized customer segments ex) supplier-buyer relationships like car part manufacturers Customer Segment Type: Segmented - CORRECT ANSWER-Groups with slightly different varying needs and problems ex) Metal manufacturer with different customer segments as the watch industry, medical, and industrial automation Customer Segment Type: Diversified - CORRECT ANSWER-Serves two unrelated customer segments with very different needs and problems ex) Amazon as a mass market and as a cloud computing service Customer Segment Type: Multi-sided platforms or Multi-sided markets - CORRECT ANSWER-An organization serving two or more independent customer segments ex) credit card company *Value Propositions* - CORRECT ANSWER-Describes the bundle of products and services that create value for a specific customer segment What are 5 things that can contribute to value proposition and creation? - CORRECT ANSWER-1. Newness 2. Performance 3. Customization 4. Price 5. Brand Status *Channels* - CORRECT ANSWER-How a company communicates with and reaches its customer segments to deliver a value proposition What are 2 types of Channels? - CORRECT ANSWER-1. Direct (own) 2. Indirect (partner) *Customer Relationships* - CORRECT ANSWER-Describes the types of relationships a company establishes with specific customer segments What 3 examples of customer relationship categories? - CORRECT ANSWER-1. Personal and Dedicated Personal Assistance 2. Self-Service and Automated Services 3. Communities and Co-creation *Revenue Streams* - CORRECT ANSWER-Represents the cash a company generates from each customer segment What are 2 types of revenues seen in the BMC? - CORRECT ANSWER-1. Transaction or one time 2. Recurring What are the 7 ways to generate revenue streams? - CORRECT ANSWER-1. Asset Sale ex) Amazon sells others books 2. Usage Fee ex) Pay as you go cell phone 3. Subscription Fees ex) Magazine 4. Lending/Renting/Leasing ex) my car 5. Licensing ex) media industry selling usage of a song in a movie 6. Brokerage Fees ex) credit card companies 7. Advertising ex) facebook What are two types of pricing? - CORRECT ANSWER-1. Fixed 2. Dynamic What is fixed menu pricing? - CORRECT ANSWER-Predefined prices are based on static variables What is dynamic pricing? - CORRECT ANSWER-Prices change based on market conditions *Key Resources* - CORRECT ANSWER-Describes the most important assets required to make a business model work What are 4 key resources? - CORRECT ANSWER-1. Physical 2. Intellectual 3. Human 4. Financial *Key Activities* - CORRECT ANSWER-Describes the most important thing a company must do to make its business model work What are 3 key activities? - CORRECT ANSWER-1. Production 2. Problem Solving 3. Platform/Network *Key Partnerships* - CORRECT ANSWER-Describes the network of suppliers and partners that make the business model work What are 3 motivations for creating partnerships? - CORRECT ANSWER-1. Optimization and economy of scale 2. Reduction of risk and uncertainty 3. Acquisition of particular resources and activities *Cost Structure* - CORRECT ANSWER-Describes all costs incurred to operate a business model What is the opposite of a cost driven company? ex) McDonalds - CORRECT ANSWER-A value driven ex) Five Guys What are Economies of Scale? - CORRECT ANSWER-Cost advantages that a business enjoys as its output expands. ex) Large companies benefit from larger bulk purchase rates this along with other factors can decrease cost per unit as output rises