Set a price and revenue model that will be accepted by your target customers, in exchange for the value you create.<\/p>\n
Work backwards to determine your costs structure, your profit margins and how fast you need to turn your assets.<\/p>\n
Identify the key resources and processes you need to put together in order to deliver the value proposition.<\/p>\n
Successful business model are self-reinforcing. Resources accumulate, scale and scope effects become larger. Choices in terms of processes and resources enable a superior value proposition and a better profit formula.<\/p>\n
Let’s take the case of Zara. Zara has chosen to produce in higher-cost locations, ship goods to stores weekly, use an expensive mode of transportation, in order to speed up the production process (2-4 weeks instead of 12-18 months) and keep up with customer preferences. These choices enable Zara to deliver extremely fashionable items and improve profitability thanks to fewer sales on Sale, fewer inventory write-downs (when clothes don’t sale) and a sharp decrease in missed sales (items customers may want to buy that are not available).<\/p>\n
Finally, assess the robustness of your business model. Will it resist these 3 threats over time: imitation (can competitors emulate this business model?), substitution (can new products decrease the value of your offering?), value capture by third parties (suppliers, customers, other players).","protected":false},"excerpt":{"rendered":"
Start asking yourself how you can help people have an important job done, how you can help them with a major problem that is inadequately solved by current solutions, how you can help them overcome one the most common obstacles they are likely to face: lack of wealth, time, skill…<\/p>\n","protected":false},"author":2,"featured_media":584,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[12,17],"tags":[],"_links":{"self":[{"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/posts\/583"}],"collection":[{"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/comments?post=583"}],"version-history":[{"count":10,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/posts\/583\/revisions"}],"predecessor-version":[{"id":619,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/posts\/583\/revisions\/619"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/media\/584"}],"wp:attachment":[{"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/media?parent=583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/categories?post=583"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.veroniquenguyen.com\/en\/wp-json\/wp\/v2\/tags?post=583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}