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A Presentation on
Developing an Effective
Business model
A combined effort of
SERIAL NO. NAME OF MEMBERS ID. NO.
01. FAHIM HASSAN 19-016
02. MD. SADID UDDIN 19-020
03. MD. HAFIZUR RAHMAN 19-022
04. MD. SHAHALAM KHAN 19-026
05. TANVEER AL JAMEE 19-104
Discussion at a glance
 Business model
 Importance of business model
Emergence of business model
 Potential flaws of business model
 Components of business model
What is a model?
A
model
A plan or
Diagram
Used to
make
something
Used to
describe
something
What is a business model?
How it competes
Utilizes its resources
Structures its relationships
Interfaces with customers
Creates value
Business model: an example
Importance of a business model
 Serves as an ongoing extension of feasibility analysis
 Focuses attention on how all the elements of a
business fit together and constitute a working whole.
 Describes why the network of participants needed to
make a business idea viable are willing to work
together.
 Articulates a company’s core logic to all stakeholders.
Emergence of a business model
• The Value Chain
• The string of activities that moves a product from the
raw material stage, through manufacturing and
distribution, and ultimately to the end user.
• Developed by an academic researcher
• Used to identify opportunities
• Explains how business models emerge and develop
• Consists of primary activities and support activities
Emergence of a business model
• Primary activities
• Support activities
Firm
Infrastructure
Human
Resource
Management
Technology
Development
Resource
Procurement
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
and Sales
Service
Potential flaws of a business model
A
complete
misread of
the
customer
1
Unsound
economics
2
Components
of Business
Model
Core
Strategy
Strategic
Resources
Partnership
network
Customer
interface
Mission
statement
• Existence
• Accomplishment
• Neither broad nor
narrow
Product/market
scope
• Product choice
• Market focus
Basis for
differentiation
• Cost leadership
strategy
• Differentiation
strategy
Core Strategy
Strategic Resources
Core
competencies
Strategic assets
Core competency
Core
Competency
A resource
or capability
Works as a
competitive
advantage
Difficult to
imitate
Allows to
differentiate
Creates
unique
value
Helps to
grow
Establishes
strong
position
Strategic assets
Strategic
assets
Plant &
equipment
Location
Brands
Patents
Customer
data
Qualified
staff
Distinctive
partnership
Partnership network
Partnership
Network
Suppliers
Key
relationships
Suppliers
Traditional
view
1 Today’s
view
2
Key relationships
Key
relationships
Joint
venture
Network
Consortia
Strategic
alliance
Trade
associations
Customer interface
Customer
Interface
Target
market
Fulfillment
and
supportPricing
structure
Target market
 Limited group of individuals or businesses
 Firms go after or tries to appeal
 Affects everything
Fulfillment and support
Fulfillment
Licensing the product
to existing companies
Manufacturing the
product by itself
Partnering with a
company
Support
Delivery and
installation
Financing
arrangements
Customer training
Warranties,
Guarantees & repair
Information through
websites
Pricing structure
Flat rate
Hourly
rate
Freemium
Business model development

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Business model development