Lecture

Business Model: Theory and Application

Graph Chat

Chat with Graph Search

Ask any question about EPFL courses, lectures, exercises, research, news, etc. or try the example questions below.

DISCLAIMER: The Graph Chatbot is not programmed to provide explicit or categorical answers to your questions. Rather, it transforms your questions into API requests that are distributed across the various IT services officially administered by EPFL. Its purpose is solely to collect and recommend relevant references to content that you can explore to help you answer your questions.

Description

This lecture delves into the theory behind business models, exploring different types and how they create value for customers. The instructor discusses the importance of customer segmentation, suppliers, and revenue structures. The lecture also covers the concept of creating value for customers through products or services, using partnerships, and managing costs. Examples from various industries, such as energy and transportation, are used to illustrate different business models. Students are encouraged to think about their own business models, considering customer segments, value propositions, revenue streams, and cost structures. The lecture concludes with a discussion on social and environmental impacts of business models.

This video is available exclusively on Mediaspace for a restricted audience. Please log in to MediaSpace to access it if you have the necessary permissions.

Watch on Mediaspace

Official source

Related concepts (21)

Business model

A business model describes how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of an organization or business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture.

Customer

In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange for money or some other valuable consideration. Early societies relied on a gift economy based on favours. Later, as commerce developed, less permanent human relations were formed, depending more on transitory needs rather than enduring social desires.

Customer lifetime value

In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prognostication of the net profit contributed to the whole future relationship with a customer. The prediction model can have varying levels of sophistication and accuracy, ranging from a crude heuristic to the use of complex predictive analytics techniques. Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship.

Value proposition

In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. Creating a value proposition is a part of the overall business strategy of a company.

Sales

Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale". The seller, or the provider of the goods or services, completes a sale in an interaction with a buyer, which may occur at the point of sale or in response to a purchase order from a customer.

Related lectures (62)

Strategic Marketing: Understanding Customer Needs and Value Proposition

Explores strategic marketing, customer needs, and value proposition for successful marketing strategies.

Self-Shaving App: Design and Business Model Canvas

Presents a self-shaving app with adjustable blades and various designs, covering the Business Model Canvas, value propositions, and market trends.

Value Proposition & Business Model

Explores creating value propositions and business models for various ventures, emphasizing market evaluation and revenue generation.

Value Proposition: Creation, Delivery, Capture

Explores the creation, delivery, and capture of value for customers through the concept of value proposition.

Understanding Customers and Competition: Key Steps and Analysis