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.- ElementThree: 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.