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Corporate IssuersModule 7 of 7

Business Models

6

Concepts

0

Formulas

1

Decisions

2

Quiz Questions

Key Concepts

6 concepts covered in this module.

Business Model

How a company creates, delivers, and captures value. Defines: who are customers, what is offered, how to deliver, how to earn revenue.

Value Proposition

The unique combination of products/services that creates value for a specific customer segment.

Revenue Models

Subscription, licensing, advertising, transaction-based, freemium, razor-and-blade.

Network Effects

Value of product/service increases as more users adopt it. Creates competitive moats (e.g., social media, payment networks).

Platform Business Models

Connect multiple user groups (buyers/sellers, riders/drivers). Capture value by facilitating transactions. Network effects amplify growth.

Business Model Innovation

New ways to create or capture value. Disruption when incumbents' models become obsolete (e.g., streaming vs DVD rental).

Decision Frameworks

1 decision frameworks to guide your analysis.

How to evaluate a business model?

  • Customer value proposition strength
  • Revenue sustainability and scalability
  • Competitive moat (network effects, switching costs)
  • Unit economics (LTV > CAC)

Mind Map

Visual overview of how concepts connect in this module.

Business Models
Components
Value proposition
Revenue model
Cost structure
Target customers
Revenue Models
Subscription
Advertising
Transaction fees
Freemium
Licensing
Network Effects
Direct: more users = more value
Indirect: more users attract complements
Winner-take-most dynamics
Platform Models
Multi-sided platforms
Matchmaking
Transaction facilitation
Data monetization
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Flashcard

Business Model

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Answer
How a company creates, delivers, and captures value. Defines: who are customers, what is offered, how to deliver, how to earn revenue.
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