SEVI 3013 EXAM 2 WITH 100%
CORRECT SOLUTIONS
Describes what a firm does to create, deliver, and capture value for its stakeholders -
ANSWER-What is Business Model?
A company's business model is a part of its business' overall strategy. It is a component
in how the company plans to achieve its goals. - ANSWER-How is Business Model
Related to Strategy?
- ANSWER-What are the Components of a Business Model?
- ANSWER-How do Business Models Help Make Strategic Decisions?
- ANSWER-Customer Value Concept (CVC)
- ANSWER-Revenue Streams
- ANSWER-Cost Streams
Finds a firm licensing its trademark and the processes it follows to create and deliver a
product to franchisees
The firm franchising its trademark and processes captures value by receiving fees and
royalty payments from its franchisees
McDonald's and Panera Bread - ANSWER-Franchise (Business Model)
The firm provides a basic product to customers for free and earns revenues and profits
by selling a premium version of the service
Dropbox and MailChimp - ANSWER-Freemium (Business Model)
For a fee, firms provide advertisers with high-quality access to their target customers
Google and Pinterest - ANSWER-Advertising (Business Model)
Where a business matches those wanting a particular service with those providing that
service
Task Rabbit and Airbnb - ANSWER-Peer-to-Peer (Business Model)
, The business model finds a firm offering a product to customers on a regular basis such
as once-per-month, once-per-year, or upon demand
Netflix and Blue Apron - ANSWER-Subscription (Business Model)
- ANSWER-The Dynamic Nature of Business Models
- ANSWER-The Criteria to Look at to Assess and Evaluate Business Models
A market-based move that firms take to fine-tune a strategy; These actions and
responses involve fewer resources and are relatively easy to implement and reverse -
ANSWER-Tactical Moves
A market-based move that involves a significant commitment of organizational
resources and is difficult to implement and reverse - ANSWER-Strategic Moves
Firms use both strategic and tactical actions when forming their competitive actions and
competitive responses in the course of engaging in competitive rivalry
When engaging rivals in competition, firms must recognize the differences between
strategic and tactical actions and responses and develop an effective balance between
them - ANSWER-Why are Tactical Moves and Strategic Moves Important?
Competitors are firms competing in the same market, offering similar products, and
targeting similar customers
Competitive rivalry is the ongoing set of competitive actions and responses occurring
between competitors as they compete against each other for an advantageous market
position - ANSWER-Competition
- ANSWER-What are the Different Things Firms Compete for?
The first step the firm takes to be able to predict its competitors' actions and responses
Firms study market commonality and resource similarity to complete a competitor
analysis; the greater the market commonality and resource similarity, the more firms
acknowledge that they are direct competitors - ANSWER-Competitor Analysis
Is concerned with the number of markets with which the firm and a competitor are jointly
involved and the degree of importance of the individual markets to each - ANSWER-
Market Commonality
The extent to which the firm's tangible and intangible resources compare favorably to a
competitor's in terms of type and amount - ANSWER-Resource Similarity
CORRECT SOLUTIONS
Describes what a firm does to create, deliver, and capture value for its stakeholders -
ANSWER-What is Business Model?
A company's business model is a part of its business' overall strategy. It is a component
in how the company plans to achieve its goals. - ANSWER-How is Business Model
Related to Strategy?
- ANSWER-What are the Components of a Business Model?
- ANSWER-How do Business Models Help Make Strategic Decisions?
- ANSWER-Customer Value Concept (CVC)
- ANSWER-Revenue Streams
- ANSWER-Cost Streams
Finds a firm licensing its trademark and the processes it follows to create and deliver a
product to franchisees
The firm franchising its trademark and processes captures value by receiving fees and
royalty payments from its franchisees
McDonald's and Panera Bread - ANSWER-Franchise (Business Model)
The firm provides a basic product to customers for free and earns revenues and profits
by selling a premium version of the service
Dropbox and MailChimp - ANSWER-Freemium (Business Model)
For a fee, firms provide advertisers with high-quality access to their target customers
Google and Pinterest - ANSWER-Advertising (Business Model)
Where a business matches those wanting a particular service with those providing that
service
Task Rabbit and Airbnb - ANSWER-Peer-to-Peer (Business Model)
, The business model finds a firm offering a product to customers on a regular basis such
as once-per-month, once-per-year, or upon demand
Netflix and Blue Apron - ANSWER-Subscription (Business Model)
- ANSWER-The Dynamic Nature of Business Models
- ANSWER-The Criteria to Look at to Assess and Evaluate Business Models
A market-based move that firms take to fine-tune a strategy; These actions and
responses involve fewer resources and are relatively easy to implement and reverse -
ANSWER-Tactical Moves
A market-based move that involves a significant commitment of organizational
resources and is difficult to implement and reverse - ANSWER-Strategic Moves
Firms use both strategic and tactical actions when forming their competitive actions and
competitive responses in the course of engaging in competitive rivalry
When engaging rivals in competition, firms must recognize the differences between
strategic and tactical actions and responses and develop an effective balance between
them - ANSWER-Why are Tactical Moves and Strategic Moves Important?
Competitors are firms competing in the same market, offering similar products, and
targeting similar customers
Competitive rivalry is the ongoing set of competitive actions and responses occurring
between competitors as they compete against each other for an advantageous market
position - ANSWER-Competition
- ANSWER-What are the Different Things Firms Compete for?
The first step the firm takes to be able to predict its competitors' actions and responses
Firms study market commonality and resource similarity to complete a competitor
analysis; the greater the market commonality and resource similarity, the more firms
acknowledge that they are direct competitors - ANSWER-Competitor Analysis
Is concerned with the number of markets with which the firm and a competitor are jointly
involved and the degree of importance of the individual markets to each - ANSWER-
Market Commonality
The extent to which the firm's tangible and intangible resources compare favorably to a
competitor's in terms of type and amount - ANSWER-Resource Similarity
