Craigslist Jobs Des Moines Ia – Definition of a business model What is a business model? A business model describes the rationale for how an organization creates, delivers and captures value. 2
Key Activities Value Propositions Customer Relationships Key Partners Customer Segments Cost Structure Revenue Streams Key Resource Channels 5
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User groups are considered separate segments if: • Their needs require and justify different niches. The building block of customer segments defines the different groups of people or organizations that an organization will reach and serve6.
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2 Niche market companies serve specific and specialized customer segments. Value propositions, distribution channels and customer relationships are tailored to the specific needs of the niche market. 1 Mass market companies focus on a large group of customers with similar needs and problems. Multifaceted Markets Some organizations serve two or more interrelated customer segments. Both sectors are necessary for the business model to work. For example, a credit card company needs a large base of credit card holders and a large base of merchants that accept those credit cards. 3 Segmented companies divide the market into several segments with slightly different needs and problems. Companies offer slightly different value propositions for each sector. 5 Basic Types Diversified companies serve two (or more) unrelated customer segments with very different needs and problems. Companies must meet the needs of different segments with different value propositions. 4
9 2 Value Propositions Satisfy new needs that customers have not realized Innovation Fulfillment Improve the performance of a product or service Customization Satisfy the specific needs of individual customers or industries “Getting things done” Help the customer get a job done Design proposal Simple design and emotional Brand/situations of taste, wealth and status that indicate A Price Offer similar value at a lower cost Cost reduction A value proposition describes why a customer will buy a product or service. It is aimed at a well-defined customer segment. Convince a potential customer that a certain product or service will add more value or solve a problem better than competing products or services. Help customers reduce costs Reduce risk Customers buy or use while reducing risk. Availability Availability of products and services Convenience for customers.
Channels perform several functions, including: • Increasing customer awareness of a company’s products and services • Helping customers evaluate a company’s value proposition • Enabling customers to purchase specific products and services • Presenting the value proposition to customers • Provide customer support after a purchase. The channel building block describes how a company communicates with and reaches its customer segments to deliver its value proposition10
Increase customer awareness of the company’s products and services 2. Evaluation Help customers evaluate the company’s value proposition 3. Purchasing Enable customers to purchase specific products and services 4. Delivery Present the value proposition to customers 5. After-sales Provide customer support after purchase Channels are divided into direct and indirect forms; the “direct” channel allows the customer to buy the product from the manufacturer and the “indirect” channel allows the customer to buy the product from the wholesaler. Direct channels are considered “shorter” than “indirect”. Read more: An organization can choose to reach customers through its own channels, partner channels, or a combination of both.
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The core elements of customer relationships describe the types of relationships a company has with specific customer segments12.
Self-service provides tools for users to help themselves. 2 3 Dedicated Personal Support 1 Personal Support The customer can contact a real customer representative for help during the sales process or after completing the purchase. This relationship involves the dedication of a customer representative to a particular customer. It represents the deepest and most intimate types of relationships. Basic Types 4 Automated Services This type of relationship combines a more sophisticated form of customer self-service with automated processes. Profiles allow users to access personalized services. 6 Co-creation More companies are moving beyond the traditional customer-supplier relationship to co-create value with customers. Communities Businesses can use communities to engage more with customers and facilitate connections between community members. 5
A business model can include two different types of revenue streams: 1. Transaction revenue generated from one-time customer payments 2. Recurring revenue generated from ongoing payments to deliver a value proposition to customers or provide post support – purchase as a source of income. . Block represents the amount of money the company earns from each customer segment (expenses must be subtracted from revenue to create revenue) 14
1 Asset Sale The best-known revenue stream comes from the sale of ownership rights to a physical product.
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2 Usage fees 1 Sale of assets This revenue stream is generated by the use of a given service. The more the service is used, the more the customer pays.
17 5 Revenue Streams 3 Subscription Fees 2 Usage Fees 1 Asset Sale This revenue stream is created by selling ongoing access to the service.
4 Rent/Lease 3 Subscription Fees 2 Usage Fees 1 Asset Sale This revenue stream is created by temporarily granting someone the exclusive right to use a certain asset for a certain period of time in exchange for a fee.
4 Rent/Lease 3 5 Subscription Fees License 2 Usage Fees 1 Asset Sales This revenue stream is created by granting customers permission to use protected intellectual property in exchange for a license fee.
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4 Rent/Lease 3 5 License Subscription Fees 2 6 Usage Fees Brokerage Fees 1 Asset Sale This revenue stream comes from brokerage services provided on behalf of two or more parties.
21 5 Revenue Stream 4 Rental/Leasing 3 5 Subscription and License Fees 2 6 Usage Fees Brokerage Fees 1 7 Sale of Advertising Assets This revenue stream results from commissions for advertising a particular product, service or brand.
Intellectual assets include trademarks, proprietary know-how, patents, copyrights, partnerships and customer databases. Physical This category includes physical assets such as machinery, buildings, machines, systems and distribution networks. Basic types of people All businesses require human resources, but people are particularly prominent in some business models. For example, human resources are crucial in knowledge-intensive and creativity-intensive industries. Financial Some business models require financial resources and/or financial collateral, such as cash, lines of credit or a stock option fund, to hire key employees.
These activities involve designing, manufacturing and delivering a product of great quantity and/or quality. Main Types Platform/Network Troubleshooting The main activities of this type are associated with finding new solutions to individual user problems. Business models developed using the platform as the primary resource are dominated by core activities associated with the platform or network.
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Sourcing partnerships can help reduce risk in an uncertain competitive environment. Economies of scale partnerships are often created to reduce costs and often involve outsourcing or sharing infrastructure. These partnerships may be motivated by the need for expertise, licenses or access to customers.
Cost-oriented business models focus on reducing costs wherever possible. This approach aims to create and maintain a leaner cost structure. Basic Types Some companies focus on value creation. Value-based business models are typically characterized by superior value propositions and high levels of personal service.
The nine building blocks of a business model form the basis of an easy-to-use tool we call the Business Model Canvas.
33 Craigslist offers classified ads to help people find jobs and housing, connect with community members, and buy, sell, or trade services and goods.
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34 Customers Most Craigslist customers pay nothing for the service. Craigslist charges fees to business owners and landlords in some cities. These paying customers support paying customers.
35 Value Proposition Facilitate offline communications between community members. It offers free classified ads. It provides effective and low-cost advertising to business owners and property owners.
Users create, edit, and post listings on Craigslist through an automated process that eliminates the need for Craigslist staff intervention. Our staff relies primarily on users to manage forums and identify fraudulent activity. Craigslist focuses on improving the user experience for existing customers rather than innovating to attract new customers.
39 Key Resources The first resource for Craigslist is the “Platform.” A platform is an automated mechanism or “engine” that enables interaction between customers.
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40 Main Activities Craigslist’s most important activity is developing and maintaining its platform. In addition to developing and maintaining the platform, employees spend time dealing with hackers, spammers, and other illegitimate users.
41 Top Partners Non-paying customers are Craigslist’s most important partners because they strive to maintain honesty and courtesy among customers.
To make this site work, we collect user data and share it with processors. To use this site, you must agree to our privacy policy, including our cookie policy. While there are many legitimate deals in the Creeks, some are not, and if a deal seems too good to be true, it probably is. If you buy stolen items, you can get them back if you buy them.
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