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CET 0411-2 - Technopreneurship 101

BUSINESS
MODELS
by Group 1

ANTONIO, NAOMI LOUISSE B. MANALO,NIKKA JANE D.

MAGISTRADO, FIDES P. VALENCIA, KRISTINE QUELIE B.
Introduction

1 INTRODUCTION

TOPIC
2 BUSINESS MODELS
3 PRODUCT ATTRIBUTE

OUTLINE 4

5
BUSINESS MODEL
CANVAS
VALUE MAP
INTRODUCTION

BUSINESS MODEL
INTRODUCTION

BUSINESS MODEL
A business model is a company's strategy for building
revenue and making a strong profit.
Essentially, it’s a blueprint or framework for how the
company will operate and achieve financial success.
 INTRODUCTION

IMPORTANCE OF

Target Market
This enables the business to
create products or services that
meet the needs of its target
market and differentiate itself
from competitors.
INTRODUCTION

IMPORTANCE OF

Competitive
By identifying the unique value
offered to customers, a business
model helps maintain
competitiveness and sets the
business apart from others.
 INTRODUCTION

IMPORTANCE OF

Investors
A clear business model is
attractive to potential investors
looking for viable investment
opportunities.
 INTRODUCTION

01. CREATING VALUE

KEY COMPONENTS OF

02. DELIVERING VALUE

03. CAPTURING VALUE

 INTRODUCTION

Design

Raw Materials
Creating Value is everthing it
takes to make something
that holds worth for
Manufacturing
customers.

Labor
 INTRODUCTION

Marketing
Marketing

Distribution
Delivering Value is everything it
takes to make the product or
services accessible, appealing,
Delivering a Service
and satisfying to customers.

Processing the Sale

 INTRODUCTION

Marketing
Pricing Strategy

Capturing Value allows the

business to retain a portion of
the value it creates and Payment Methods
delivers to its customers in the
form of financial returns.

Payment Timing
 INTRODUCTION

01 Creating Value 03 Capturing Value

02 Delivering Value
Types of Business Model

TYPES OF BUSINESS MODELS

Types of Business Models 1

Retailer Model
Retailers purchases products from
distributors or wholesalers and resell them
at markup price. These types of businesses
sell a variety of goods that customers can
choose from.
Types of Business Models 2

Manufacturer Model
Raw materials or ingredients are sold as
products to distributors, retailers, or
customers. They can also involve the
assembly of prefabricated components to
make a new product.
Types of Business Models 3

Fee-for-Service
Model
A model in which a business has set up a
certain fee for their customers in exchange
for a specific service. Fees can be an hourly
rate, monthly rate, or a commission fee.
Types of Business Models 4

Subscription Model
Customers of the product or service needs
to pay for subscription fees monthly or
annually to be able to continuously access
it.
Types of Business Models 5

Bundling Model
two or more products or services that are
sold can be combined and sold at a smaller
price compared when you buy them
seperately.
Types of Business Models 6

Products-as-a-
Service Model
Customers don’t buy the products itself but
pays for them to be able to use the product
or access it after per use, per mile fee, or
per month.
Types of Business Models 7

Leasing Model
In this business model, a company (the
lessor) buys a product from a seller and let
another company (the lessee) use said
product for a recurring fee which involves
longer times or a period to be paid.
Types of Business Models 8

Franchise Model
Consists of a franchisor and a franchisee,
which has a legal or commercial
relationship with each other. Through this
relationship, the franchisee will be able to
sell the franchisor’s products or services
that has an established trademark.
Types of Business Models 9

Distribution Model
Company follows a structured approach
uses to deliver its products or services from
producers to costumers through the
various channels of the company.
Types of Business Models 10

Freemium Model
Most basic features or parts of a product or
service for free to entice consumers to
purchase a fuller or upgraded version of
said product or service.
Types of Business Models 11

Advertising Model
Utilizes the business’s audience as a part of
its asset. An Advertising business model
sells its audiences’ attention in which its
size determines the rates of the advertising
space on their platform.
Types of Business Models 12

Affiliate Marketing
Model
Also utilizes the business’s audience as a
part of its asset. Affiliate Business models
include a company earning a commission
for every product or service it sells to an
audience.
Types of Business Models 13

Razor Blades Model

This business model includes selling an
initial product or service at a cheaper price
and then selling a product or service
related to said products or services that is
more expensive. This term started from
Gillette’s model which sells razors at a
cheap price but sells the replacement
blades at an higher price.
Types of Business Models 14

Reverse Razor
Blades Model
Initial product or service is sold at a high
profit margin but its complementary
products or services are sold cheaply which
enhances customer retention and allowing
company to have higher initial profits.
Product Attributes

PRODUCT ATTRIBUTES
Product Attributes

PRODUCT ATTRIBUTES
are characteristics or features that describe a
product. These attributes can be physical, such as the
size, shape, or color of the product, or they can be
more abstract, such as the brand image, quality, or
value.
Product Attributes

Tangible (physical) Intangible (non-physical)

physical features that can are non-physical features

be assessed by using our are subjective to the person
senses of sight, touch, experiencing them and
hearing, and smell focus on how the person
feels or thinks about them.
 Product Attributes

EXAMPLES
01. Name 04. Design
is used to identify and
refers to its
distinguish it from other
appearance and style
products

02. Size 05. Price

Dimensions or capacity The amount of money
of the product that it costs to
purchase it

03. Color 06. Material

Composition
The hue or shade of the Refers to the materials that
product's appearance the product is made of
 Product Attributes

EXAMPLES

07. Marketing statements

Messages or claims about a product
that are used to promote or sell it

08. Country of Origin

The country where a product is

made or assembled
 Product Attributes

HOW TO USE PRODUCT ATTRIBUTE

Product Description Product photography

Craft descriptions on each product page Ensure images clearly display key
highlighting the most helpful product attributes, such as design, color, and size
attributes

Product marketing materials

Integrate product attributes into marketing assets:
website content, social media posts, and
promotional emails to showcase attributes.
Business Model Canvas

BUSINESS MODEL
CANVAS
Business Model Canvas

BUSINESS MODEL CANVAS

a strategic management tool that lets you
visualize and assess your business idea or concept
a visual tool with elements describing a company’s
value proposition, infrastructure, customers, and
finances.
BUSINESS MODEL CANVAS
 Business Models Canvas

the different groups of people or

organizations an enterprise aims to
reach and serve

1. Mass Market
Questions to be Answered: 2. Niche Market
For whom are we creating value?
3. Segmented
Who are our most important customers? 4. Diversified
5. Multi-sided markets
 Business Models Canvas

Describes the types of relationships

a company establishes with specific
Customer Segments.

1. Personal assistance
Questions to be Answered:
2. Dedicated personal assistance What type of relationship does each of the customer?
3. Self-service How are they integrated with the rest of the business
model?
4. Automated services Which ones have established? How costly are they?
5. Communities Segments expect us to establish and maintain with
them?
6. Co-creation
 Business Models Canvas

Describes how a company communicates with

and reaches its Customer Segments to deliver a
Value Proposition.

1. Owned channels: company website,

Questions to be Answered: social media sites, in-house sales,
Through which Channels do our Customer Segments want etc.
to be reached?
How are we reaching them now? 2. Partner channels: partner-owned
How are our Channels integrated?
websites, wholesale distribution,
Which ones work best?
Which one are most cost-efficient? How are we integrating retail, etc.
them with customer routines?
 Business Models Canvas

Describes all costs incurred to

operate a business model

1. Cost-driven (focuses on
minimizing costs whenever
possible) Question to be Answered:
What are the most important costs inherent
2. Value-driven (focuses on in our business model?
providing maximum value to the Which Key Resources are most expensive?
customer) Which Key Activities are most expensive?
 Types of Business Models 7

How a business generates

revenue.

A revenue stream can belong to one of

the following revenue models,
TRANSACTION-BASED REVENUE - one-time payments
RECURRING REVENUE - company earns continuously

Questions to be Answered:
How does the business earn money?
What value do customers pay for?
Through what channels?
What mechanisms do you use to capture value?
 Types of Business Models 7

specific activities or tasks that are

fundamental to the operation of your
business.

These activities can be grouped into

three categories:
PRODUCTION - Creating and delivering the product or service.
PROBLEM-SOLVING - Addressing customer needs or challenges.
PLATFORM - Managing connections and networks

Questions to be Answered:
• What key activities do our value Propositions require?
• Our distribution channels?
• Customer relationships?
 Types of Business Models 7

This is where you list down which key

resources or the main inputs you need to
carry out your key activities in order to
create your value proposition.
4 CATEGORIES OF KEY RESOURCES:
PHYSICAL RESOURCES - tangible assets
INTELLECTUAL RESOURCES - intangible assets
HUMAN RESOURCES - people who make up the workforce of
an organization

FINANCIAL RESOURCES - funds and assets

Questions to be Answered:
What Key Resources do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
 Types of Business Models 7

Partners and suppliers that enable

your business to operate effectively.
There are four categories of partners you can identify.
BUYER-SUPPLIER - Exchange of goods and services.
STRATEGIC ALLIANCES - Collaborating with non-competitors to leverage resources.
JOINT VENTURES - Partnering to access new markets or fill product gaps.
COOPETITION - Competitors collaborating to reduce risks and expand revenue.

Questions to be Answered:
What Key Resources do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
 Types of Business Models 7

an innovation, service, or feature intended to make a company or product attractive to customers.

Value propositions can be either quantitative (price and speed of service) or qualitative (customer
experience or design).

There are three key elements to a strong value

proposition:
CUSTOMER NEEDS: What problem are you solving?
SOLUTION: How does your product or service
provide the solution?
DIFFERENTIATION: What makes you unique
compared to competitors?
 Types of Business Models Value Proposition

PRODUCT AND JOBS: Tasks or

SERVICES: problems the
Offering to help the customer trying to
customer complete or solve
PAIN RELIEVERS: PAINS: Frustrations or
Alleviate customer obstacles customers
pains face
GAIN CREATORS: GAINS: Benefits or
Create value or positive outcomes
additional benefits for customers expect or
customers desire
Value Map

VALUE MAP
 VALUE MAP

VALUE
MAP

KEY COMPONENTS OF A BENEFITS OF USING A VALUE

VALUE MAP MAP
 VALUE MAP

VALUE MAP

The Value Map, a key component

of the Value Proposition Canvas,
helps businesses understand how
their product or service alleviates
customer pains and creates
customer gains by fitting into their
lives, solving problems, and
fulfilling needs.
 VALUE MAP

KEY COMPONENTS

A value map typically includes three main

elements:
1. PRODUCT AND SERVICES
2. PAIN RELIEVERS
3. GAIN CREATORS
VALUE MAP 1

PRODUCT AND SERVICES

This section lists the specific features
and offerings of your product or service.
These are the attributes that define
your product.

Key features of the product or service.

Tangible and intangible offerings
Innovations or differentiators that set your
offering apart from competitors.
VALUE MAP 1

PAIN RELIEVERS
These describe how your product or service
relieves the pain points, frustrations, or
obstacles that your customers face. Think of
this as the solution your product provides to
the problems.

Customer Challenges/Frustrations/Obstacles
Pain Relief/Reduction
Key Solutions/Features
VALUE MAP 1

GAIN CREATORS
This section outlines how your product or
service creates value for the customer by
helping them achieve their goals, desires, or
benefits. It describes the positive impact that
the customer will experience by using your
product.
Customer Benefits
Desirable Outcomes
Exceeding Expectations/Additional Value
 VALUE MAP

BENEFITS OF
USING A VALUE MAP

1 Clarifies Customer Value Proposition

2 Aligns Business Activities with Customer Needs
3 Improves Product-Market Fit
4 Guides Strategic Decisions
 VALUE MAP 2

WHY THE VALUE MAP

IS IMPORTANT?
The Value Map helps you connect your
product's features to customer needs by
addressing their pains and gains, enabling
you to create a clearer and more resonant
value proposition.
Conclusion

CONCLUSION