Approaching Business Models from an Economic Perspective

1 Introduction: The Business Model and Transaction structure -- Transaction Value, Costs, and Risks in the Transaction structure -- The Six Elements of a Transaction structure -- From Discovery and Reconstruction to Interpretation and Competition and Design -- 2 Business Models and Transaction Value, Costs and Risks -- The Business Model: A Transaction structure for Stakeholders -- Maximizing Value with a Superior Business Model.- Dynamic Business Model Analysis -- The Six Elements of a Business Model -- Relationships and Differences between Business Models and Other Management Theories -- 3 The Business Model with Minimal Transaction Costs -- A Good Place to Start: Rural Cooperatives -- Production: Supplier Cooperative - Aalsmeer Flower Auction -- Service: Customer Cooperative - CUMA -- Service: Customer Cooperative -MIGROS -- Financing: Customer Cooperative - Rabobank -- The Second Example: Housing Cooperatives in Sweden -- The Third Example: Mondragon - Employee Cooperatives -- The Fourth Example: Various Non-Profit Organizations (No Owner) -- The Fifth Example: Another Type of Charity Organization - Social Business -- Business Tradition in Shanxi - A Trade-off between Market Transactions and Ownership Transfer -- Business Model vs. Structurally Competitive Advantages -- 4 Business Model Positioning and Strategic Positioning -- Strategic Positioning and Marketing Positioning -- Business Model Positioning: Ways to Satisfy Stakeholder Needs -- Business Mode Positioning Analysis I: Property Transferring Rights -- Business Mode Positioning Analysis II: Transaction Process -- Business Mode Positioning Analysis III: Products, Services, Solutions or Profiting Tools -- 5 Profit Model One: Fixed-Income, Remaining-Profit and Profit-Sharing -- Fixed and Variable Contribution of Resources and Capabilities -- Fixed-Income, Remaining-Profit and Profit-Sharing Models -- Element One: Transaction Value -- Element Two: Transaction Costs -- Element Three: Capability to Bear Risks.-How to Determine Profit Models -- Combination of Profit Models -- Competition between Profit Models -- 6 Profit Model Two: Admission, Toll, Parking, Fuel and Sharing Fees -- Do They Create New Transaction Value? -- Do They Bring Down Transaction Costs? -- Do They Reduce Transaction Risks? -- Structural Differences based on Vendor Strength -- 7 Profit Model Three: Combined Pricing -- Product-Combined Pricing -- Two-Tier Pricing -- Razor-Blade and Blade-Razor -- End to End (E2E) Solutions -- Supermarket Shelf -- Consumer-Combined Pricing -- Cross Subsidization -- Batch Pricing -- Time-Of-Use Pricing -- 8 Profit Sources -- Which Resources and Capabilities Yield Profit? -- Who Create Profits? -- From PM0 to PM"x": Building a Value Ecosystem for Stakeholders -- Flexible Shifts Between Cost and Profit -- 9 Creating Value through Key Resources and Capabilities -- What Are Key Resource and Capabilities? -- How are Resources and Capabilities Obtained? -- How can High Value be Created with Key Resources and Capabilities? -- 10 Cash Flow Structure and Endogenous Finance -- Cash Flow Structure and Transaction Value, Costs and Risks -- Cash Flow Structure: Indicator of Dealing Structures -- Cash Flow Structure: Basis to Design Financial Tools -- Business Model and Endogenous Finance -- Appendix: Economic Definitions of Financial Tools -- 11 Platform-Based Business Models -- The Platform: More is Better -- Why choose a platform business model? -- Platform Profit Model: Sources of Income and Pricing Modes -- Sources of Income -- Pricing Mode -- Competition and Evolution for Digital Media Platforms -- 12 The Soft Integrated Business Model -- Soft Vertical Integration: BP Solar’s Strategy -- Soft Industry Chain Integration: Gold Wind’s Business Model Evolution -- Resources and Capabilities Required for ‘Soft Integration’ -- Annex: Driving Factors of Integration Strategy