Question

1, Which of these is NOT a component of the Business Model?

A) The value proposition

B) The target market

C) the competition

2, Wang, Digital, Data General, Prime, and other computer companies were all created in northeastern Massachusetts! They felt that computing was professional and not personal. Computers were to be controlled by operators and not end-users. These minicomputer makers failed to see how the microcomputer would make computing ubiquitous. None of them exist today. We refer to their reason for failure as:

A) Utterly unsound economics

B) A business concept blind spot

C) An inability to compete with larger customers

D) Loss of key leadership when the founders retired.

D) the revenue sources

E) all of the above are components of the business model.

Answer 1

Question 1)

Value proposition,target market and competition are components of business model.

The value proposition describes the mix of product, service, customer relations and brand image unique to the company. The value proposition helps the company to differentiate itself from competitors and to focus on providing core value for customers. The market segment is a related component and describes what type of customers or what segment of the market the business will target.

Competition tells the firm about its maket position. In this section of the business model, identify competitors and how your product or service will differ from theirs, for example, by having a lower price, more features or better service.

Question 2)

correct answer is (B) business concept is blind spot

majority of businesses have a blind spot or a blindside. It is born from the history of how things have been done as well as a narrow focus on where the company is going. Major companies have been taken out due to their blindside.

Part of this phenomenon is related to the "Theory of Incongruency" which suggests that our expectations cloud our perception.

For organizations, the blindside is the nontraditional market entrant they don’t see coming. Established companies expect acknowledged competitors to undercut margins, “steal” customers and develop new products or services. What they often don’t expect is a new approach to the industry or a change that requires an entirely different business model.

As an industry is transformed and demand for the “old model” begins to shrivel up, price slashing begins which further deteriorates the value and drives many out of business while others are swallowed up by larger players in consolidation.

Companies that want to avoid the blindside need to keep their antenna up and monitor trends in other industries as well as their own to ensure they understand what could be changing and how it might impact them.