One of the beauties of the business model thinking is that we learn to see a business totally different if we really apply stringent thinking and dissect a business into its building blocks. And one of the most important concepts is that the value proposition is not the product. Why? It’s not the product that creates value but the value…
Framing the business model so it can be quickly but well understood by others is core. So, how do we do it? By Paul Hobcraft You have come to end of a fairly long week. You have finally finished your Business Model Canvas. Finally you have a working hypothesis of something that is going to challenge some of the existing…
Most people want to be liked or even be loved. But a good value proposition for a firm should not attract everybody but only the ones you intend. And that means that a lot of people might even hate you. Take the latest controversy about Abercrombie & Fitch, an American retailer for casual wear. See here (forbes.com), here (Los Angeles Times) or…
Concentrate less on the product and more on the value you create for your customers. The customers care for the value proposition and how you fulfill it. And of course, the product is important but all other building blocks help to fulfill the value proposition as well.
Architectural innovations are often what customers do not see immediately but there are core of any good strategy. While in the last years we saw a trend toward concentration on core activities like marketing and branding, some companies take the opposite route. And that is good.
How do brands and business model work together? That is a key question for successful companies because if they do not align brand and business model it will backfire, probably not in the short run but surely in the long run. Branding is a hot topic. Brands give products the magic touch. With branding regular, normal products morph into highly…
