New Business Models and Entrepreneurship

This chapter introduces the concept and key elements of a business model, a framework firms use to create value for customers and shareholders. The core components of a business model include customer value proposition, target customers, their needs, and the solutions provided to meet those needs. The profit formula covers the revenue model, cost structure, and margin model. Key resources such as people/culture, technology, knowledge, brand, and partnerships are critical for success; as are key processes, including operational processes, organizational control, and policy. The chapter also explores and compares various types of business models in the media and entertainment industry. It offers practical guidelines for business model planning, from defining the value proposition and market opportunity to formulating market strategies and organizational development. The chapter also delves into business model innovation, explaining its process and outcomes.