Entrepreneurship: Successfully Launching New Ventures, 2/e Bruce R. Barringer R . Duane Ireland. Chapter 6. Case Study . International food delivery franchise - delivers foods from Malaysian top restaurants to homes and offices within one hour.
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Bruce R. Barringer
R. Duane Ireland
Caters to over 200 blue chip companies for office luncheon, training and board meetings.
Important – takes beyond its own boundaries.
Almost all companies partner with others to make business models work. In Dell’s case - needs cooperation - suppliers, shippers, customers and many others
After feasibility analysis was conducted - knows a product or service with potential - business model addresses how to surround it with:
By studying a product or service’s value chain, an organization can identify ways to create additional value and assess whether it has the means to do so.
Operations: involves all activities required to manufacture a product
Outbound logistics: involves all activities required to store and ship a finished product
Entrepreneurs look at value chain to pinpoint where it can be made more effective or to spot where additional “value” can be added.
food delivered to their homes
Pets.com sported an unsound business model, and failed.
E.g. “To produce a high quality ‘halal’ age reviving serum delivered free to our customers and offer a rewarding commission to our distributors"
Defines products and markets on which it will focus.
because choice of products has an important impact – add values – bottom line
Product / Market Scope
Differentiate from competitors is IMPORTANT to its customers and NOT EASY TO COPY.
If a new company’s products or services aren’t different from those of its competitors, why should anyone try them?
Differentiate - cost leadership strategy or a differentiation strategy.
E.g ‘Halal’, affiliate, free delivery
Basis of Differentiation
A resource or capability - serves as a source of a company’s competitive advantage
E.g. capitalising budget marketing to sell age reversing product
Anything rare and valuable a company owns - plant and equipment, location, brands, patents, customer data, a highly qualified staff, and distinctive partnerships.
E.g. Smart partnership with a contract manufacturer - natural based, ‘Halal’, hygienic and affordable, ‘passionate’ management team
New ventures - combine core competencies and strategic assets to create a sustainable competitive advantage.
A supplier (vendor) is a company provides parts or services to another company.
Mibelle Biochemistry – a primary supplier for stem-cell apply technology.
Collaborative relationships with suppliers and finding ways to motivate them to perform at higher levels.
Along with suppliers, companies partner with other companies to make business models work. E.g Online social media experts, JAKIM
An entrepreneur’s ability to launch a company achieves a sustainable competitive advantage may rely on partners’ skills and expertise.
Other Key Relationships
Limited group of individuals or businesses that it goes after or tries to appeal to.
Will affect everything it does, from the strategic assets it acquires to the partnerships it forges to its promotional campaigns.
Describes the way a company’s product or service “goes to market” or how it reaches its customers. Also, channels a company uses and what level of customer support it provides.
These issues impact shape and nature of a company’s business model.
Fulfillment and Support
Pricing models vary, depending on a company’s target market and its pricing philosophy.
Daily flat rate, flat fee per service, and hourly rate.