This document outlines an upcoming workshop for women entrepreneurs on building better markets and managing finance. The workshop will cover developing strong business models, using the business model canvas as a framework, and analyzing how business models interact with competitors. It provides examples of successful business models like Apple, Facebook, IKEA, and Skype that have strong virtuous cycles and competitive advantages through recurring revenues, low costs, network effects, and other strategies discussed in the workshop.

1. Prof
Shivananda
R
Koteshwar
Director,
The
Amaatra
Academy
shivoo@pes.edu
/
Facebook:
shivoo.koteshwar
BUILDING A BETTER MARKET AND MANAGING FINANCE
A One Day Workshop For Women Entrepreneurs
Mount Carmel College, Bangalore

3.  A
business
model
describes
the
rationale
of
how
an
organization
creates,
delivers,
and
captures
value
 Canvas
is
a
shared
language
for
describing,
visualizing,
assessing,
and
changing
business
models
References from the book: Business Model Generation
ISBN: 978-0470-87641-1

4.  Strategy
has
been
the
primary
building
block
of
competitiveness
over
the
past
three
decades,
but
in
the
future,
the
quest
for
sustainable
advantage
may
well
begin
with
the
companies
creating
and
capturing
value
through
their
Business
models
 Need
 The
pressure
to
crack
open
markets
in
developing
countries
 The
economic
slowdown
in
the
developed
world
 The
rise
of
new
technology-­‐based
and
low-­‐cost
rivals
is
threatening
incumbents,
reshaping
industries,
and
redistributing
profits

5.  FROM
Product/Market
Segment
Oriented
Approach
▪ Product
and/or
service
at
its
center
that
focuses
on
a
customer’s
job-­‐to-­‐be-­‐done
–
Value
Proposition
 TO
a
Holistic
Business
Model
Approach
to
achieve
long
term
competitive
advantage

6. Customer
SegmentationValue
Proposition
Channels
Customer Relationship

7. Cost Structure
Revenue
Key Resources
Key Activities
Key Partners

8. Cost Structure
Revenue
Key Resources
Key Activities
Key Partners
Customer
Segmentation
Value
Proposition
Channels
Customer Relationship

10. The
story
that
explains
how
an
enterprise
works
-­‐-­‐Joan
Magretta

11.  The
success
or
failure
of
a
company’s
business
model
depends
largely
on
how
it
interacts
with
models
of
other
players
in
the
industry
 One
business
model
may
appear
superior
to
others
when
analyzed
in
isolation
but
create
less
value
than
the
others
when
interactions
are
considered
Or
rivals
may
end
up
becoming
partners
in
value
creation
 Appraising
models
in
a
stand-­‐alone
fashion
leads
to
faulty
assessments
of
their
strengths
and
weaknesses
and
bad
decision
making

12. 1. How
much
do
switching
costs
prevent
your
customers
from
churning?
2. How
scalable
is
your
business
model?
3. Does
your
business
model
produce
recurring
revenues?
4. Do
you
earn
before
you
spend?
5. How
much
do
you
get
others
to
do
the
work?
6. Does
your
business
model
provide
built-­‐in
protection
from
competition?
7. Is
your
business
model
based
on
a
game
changing
cost
structure?

13. 1. How
much
do
switching
costs
prevent
your
customers
from
churning?
“Thousand songs in a pocket”
That
was
more
than
a
product
innovation
focusing
on
storage.
It
was
a
business
model
strategy
to
get
customers
to
copy
all
their
music
into
iTunes
and
their
iPod,
which
would
make
it
more
difficult
for
them
to
switch
to
competing
digital
music
players.

14. 2. How
scalable
is
your
business
model?
How
easy
it
is
to
expand
a
business
model
without
equally
increasing
its
cost
base
?
Of
course
software-­‐
and
Web-­‐based
business
models
are
naturally
more
scalable
than
those
based
on
bricks
and
mortar
By
building
games
like
Farmville
or
Cityville
on
Facebook,
the
world’s
largest
social
network,
they
could
benefit
from
Facebook’s
reach
(&
scale)
without
having
to
build
it
themselves

15. 3. Does
your
business
model
produce
recurring
revenues?

16. 4. Do
you
earn
before
you
spend?
By
assembling
on
order
after
selling
directly
they
managed
to
escape
the
terrible
inventory
depreciation
costs
of
the
hardware
industry

17. 5. How
much
do
you
get
others
to
do
the
work?
In
the
bricks
and
mortar
world
IKEA
gets
us
to
assemble
the
furniture
we
buy
from
them.
We
do
the
work.
They
save
money.
Facebook
gets
us
to
post
photos,
create
and
participate
in
conversations,
and
“like”
stuff.
That’s
the
real
value
of
Facebook,
entirely
created
by
users,
while
they
simply
provide
the
platform.
We
do
the
work.
They
earn
the
sky-­‐
high
valuations
of
their
shares.

18. 6. Does
your
business
model
provide
built-­‐in
protection
from
competition?
Apple’s
main
competitive
advantage
arises
more
from
its
powerful
business
model
than
purely
from
its
innovative
products.
It’s
easier
for
Samsung,
for
instance,
to
copy
the
iPhone
than
to
build
an
ecosystem
like
Apple’s
appstore,
which
caters
to
developers
and
users
alike
and
hosts
hundred
thousands
of
applications

19. 7. Is
your
business
model
based
on
a
game
changing
cost
structure?
Bharti
Airtel
has
modified
its
cost
structure
by
getting
rid
of
their
entire
network
and
IT.
By
buying
in
network
capacity
on
a
variable
cost
basis
from
network
equipment
manufacturer
Ericsson
and
IBM,
they
can
now
offer
among
the
lowest
prices
for
mobile
telephony
globally.
Skype
provides
calls
and
communication
almost
like
a
conventional
telecom
company,
but
for
free
or
for
a
very
low
cost.
They
can
do
this
because
their
model
is
based
on
the
economics
of
a
software
company,
while
a
telecom
provider’s
model
is
based
on
the
economics
of
a
network
company

23. Prof
Shivananda
R
Koteshwar
Director,
The
Amaatra
Academy
shivoo@pes.edu
/
Facebook:
shivoo.koteshwar
BLOG:
http://shivookoteshwar.wordpress.com
SLIDESHARE:
www.slideshare.net/shivoo.koteshwar
Good business models create virtuous cycles that,
over time, result in competitive advantage. Smart
companies know how to strengthen their virtuous
cycles, weaken those of rivals, and even use their
virtuous cycles to turn competitors’ strengths into
weaknesses.