concept of business_model.

May 29th, 2015
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1. Value Proposition – a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective. 2. Market Segment – the group to target, recognizing that different market segments have different needs. Sometimes the potential of aninnovation is unlocked only when a different market segment is targeted. 3. Value Chain Structure – the firm's position and activities in the value chain and how the firm will capture part of the value that it creates in the chain.

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Force 1: The Degree of RivalryThe intensity of rivalry, which is the most obvious of the five forces in an industry, helps determine the extent to which the value created by an industry will be dissipated through head-to-head competition. The most valuable contribution of Porter's five forces framework in this issue may be its suggestion that rivalry, while important, is only one of several forces that determine industry attractiveness. This force is located at the centre of the diagram; Is most likely to be high in those industries where there is a threat of substitute

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