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Article: Business model framework.(Brief article)
- Article from:
- Computing
- Article date:
- February 22, 2007
- Author:
CopyrightCOPYRIGHT 2007 Incisive Media, published with the permission of Incisive Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Clint Witchalls
Business model framework
Author Henry Chesbrough posits six types of business model:
1 Undifferentiated business model
Companies compete on price and availability. While this model reduces the cost of entry into new markets, it is very difficult to sustain a competitive advantage.
2 Some differentiation in business model
Their customers are not just concerned with availability and price, but also with product or service performance. Chesbrough sees many technology-based, startups with this business model. They are trying to sell a new technology that has a small degree of differentiation.