Questions For Self-Study

Questions for self-study
1.Dell model
The model of access to consumers through special channels is the
Dell model. This model is illustrated by the experience of the company
"Dell Computer", which realized that after-sales support is important for
consumers. The priority of the consumer shifted towards qualified service
and individualized equipment. Customers were able to purchase
computers by mail order or telephone from the company's qualified sales
representatives, while receiving a high level of service, fast delivery and
professional advice.
2. A private label product is one that a retailer gets produced by a

third-party but sells under its own brand name. The retailer controls
everything about the product or products. That includes the specs of the
product, how it’s packaged, and everything else besides.
Private label products are then delivered to the retailer to sell. As far
as consumers are concerned, they’re the company’s ‘own brand’ products.
For instance, a seller of collaboration software might launch a private
label line of conference call hardware. Those products would get
manufactured by another firm. They'd get sold, though, under the initial
business’s brand name.
Advantages
Retailers interested in filling their shelves with products featuring

their brand name have good reason. Some of the biggest advantages of
private label products include:
Control over production - Third-party manufacturers work at the
retailer’s direction, offering complete control over product ingredients
and quality.
Control over pricing - Thanks to control over the product,

retailers can also determine product cost and profitable pricing.
Adaptability - Smaller retailers have the ability to move quickly to

get a private label product in production in response to rising market
demand for a new feature, while larger companies might not be interested
in a niche product.
Control over branding - Private label products bear the brand

name and packaging design created by the retailer.
Control over profitability - Thanks to control over production

costs and pricing, retailers therefore control the level of profitability its
products provide.
3. Category killers
Mainly attain their massive competitive advantage by having a
bigger and deeper selection of merchandise as compared to small and
independent stores. Those merchandise numbers enable category killers
to become cost-efficient and sell their products at prices so low that other
stores are unable to compete with them.
An example of a category killer superstore is Home Depot, which

has significantly more square footage and inventory than a local hardware
store and offers more choice in product variety. Charlie Lazarus, the
founder of Toys R Us, is generally credited with inventing the concept of a
category killer. Bookseller Barnes & Noble, electronics retailer Best Buy
and home products and furnishings store Bed Bath & Beyond are other
examples of this type of superstore.
While they may seem insurmountable, category killers are not

invincible. This can especially be the case if they are mismanaged or fail to
keep up with the times. Toys R Us, which pioneered the concept and filed
for bankruptcy in September 2017, is an example
The model of a wide assortment of one category is a "category
killer". The "superstore" business model ("Syper Store") is built on the
breadth of the assortment of one category, the potential of which is
significant. Since goods of the same category are concentrated in one
store, it is possible to ensure guaranteed quality and reasonable prices.
Due to its single-product nature, this model is called a "category killer"
and occupies a niche between general stores and consumers. Competing
stores such as "The Home Deport", "Toys 'R' Us", "Circuit City" offered
customers who were trying to save, a high level of service and guarantees
of full satisfaction of needs. The logistical task was solved in two
directions. The first is the creation of a distribution channel for
consumers who demanded a unique version of a product of a specific
category, which saves time and money; the second is the construction of
internal logistics: a supply chain that creates a highly efficient
procurement system and a sophisticated communication system.
4.
Walmart maintained its global leadership in retail segment by

leading on price and assortment. Walmart’s legendry EDLC (everyday low
cost) and EDLP (everyday low prices) strategy helped it become the
world’s largest company. Changes in the retail environments and the
evolving consumer preferences have compelled Walmart to change its
business model and include two new strategic levers. Walmart business is
being led by the following four strategic pillars:
● Lead on Price
● Invest to differentiate on access
● Be competitive on assortment
● Deliver a great experience
5.
"EDS" and "Nike" model — specialization in outsourcing. If there is

a need to optimize financial efficiency, business models are developed
based on the identification of key competencies and key activities, while
the key activities of the company are performed independently, as they
require optimization, and all others that are not optimized or do not
affect competitive advantages, are outsourced.
6. Blank-Dorff Model
A model that offers a look at the business from the perspective of

the consumer. In his understanding startup is a temporary form that, by
trial and error, allows you to find the right business model.
Instead of a business plan, he suggests developing a business model
based on several components: customers, product, income, resources,
partners. The effective model consists of the following sections:
1. Clients:
Who is our client?
What do we offer?
How do we keep a client?
2. Product:
Sales channels?
3. Income:
How do we want to get rich?
How are you planning to make a profit?
4. Resources:
What is needed to achieve the goals?
Location of resources?
Ways to get resources?
5. Partners:
Who can become a partner?
Ways to attract?
7. Osterwalder model
Alexander Osterwalder presented the business model in the form of

a scheme according to which the company operates. The model template
consists of nine items grouped into several blocks. It is based on the value
that the company provides to its customers.
1. Block "Infrastructure". It includes:
processes that create value;
resources that provide value creation (human, material, financial,

etc.)
partners, interaction with which affects the process of creating a

value chain.
2. Block "Offer":
a product or service offered by a company.
A prerequisite is the identification of competitive advantages and a

detailed description of the value for the client that provides this product
or service.
3. Block "Clients". This includes:
customers - who uses the company's products and / or services,

their needs and characteristics;
distribution channels - a method of supplying goods and services

that meets the requirements specified by the client.
4. Block "Relationships". It prescribes how the relationship with the

client will be built, it can be a self-service system, collaboration with the
client, the provision of personal service, etc.
5. Block "Finance". It analyzes in detail the company's financial
flows, cost structures and sources of profit.
8 Johnson Model
According to Mark Johnson, a business model is a way to properly

capture the market. He based his template on K. Christensen's concept of
pure space capture. The model has three components: the value
proposition, the profit formula, and key resources plus key processes. All
components are interconnected and influence each other.
9.
Open innovation is a business management model for innovation

that promotes collaboration with people and organizations outside the
company. In this sense, open innovation challenges are a true cultural
break from the company silo mentality and the secrecy traditionally
associated with the corporate R&D culture. This innovation
modelbecomes viable when the company acknowledges that there are
many bright professionals and greater knowledge outside the
organization. It is in this very moment when the opportunity to attract
those external individuals and/or companies becomes more real.
Companies implement open innovation practices in different ways such as
alliances between companies, research chairs in universities,
crowdsourcing competitions, and innovation ecosystems.
The term Open Innovation as we know it was coined by Henry
Chesbrough, associate professor and head of the Open Innovation Center
of the Haas Business School of the University of California.

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Questions for self-study

2. A private label product is one that a retailer gets produced by a

Retailers interested in filling their shelves with products featuring

Control over pricing - Thanks to control over the product,

Adaptability - Smaller retailers have the ability to move quickly to

Control over branding - Private label products bear the brand

Control over profitability - Thanks to control over production

An example of a category killer superstore is Home Depot, which

While they may seem insurmountable, category killers are not

Walmart maintained its global leadership in retail segment by

"EDS" and "Nike" model — specialization in outsourcing. If there is

A model that offers a look at the business from the perspective of

Who is our client?

How do we keep a client?

How do we want to get rich?

How are you planning to make a profit?

What is needed to achieve the goals?

Ways to get resources?

Who can become a partner?

Alexander Osterwalder presented the business model in the form of

1. Block "Infrastructure". It includes:

processes that create value;

resources that provide value creation (human, material, financial,

partners, interaction with which affects the process of creating a

a product or service offered by a company.

A prerequisite is the identification of competitive advantages and a

3. Block "Clients". This includes:

customers - who uses the company's products and / or services,

distribution channels - a method of supplying goods and services

4. Block "Relationships". It prescribes how the relationship with the

According to Mark Johnson, a business model is a way to properly

Open innovation is a business management model for innovation

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