1. CHAPTER 9 APPRAISAL OF BUSINESS MODEL Comparing one business model to another Elements of an appraisal/review Juniper Networks business model Appraise that model
2. ELEMENTS OF APPRAISING BUSINESS MODELS Measurement of how good a business model can be done using 3 levels Measure of profitability Profitability prediction Business model components attributes
16. Profitability Measures To measure how good a business model is – to compare its profitability to its competitors Use earnings & cash flow, if earnings & cash flow are +ve than business is good Problem is, start-ups has good business models but does not show profit. Needs more reliable form of measurement
17. Profitability Predictor Measures Knowledge based product needs measurement in forms of profit margin, revenue market share, & revenue growth rate Compare it with its industry’s competitors Higher means good
18. Business Model Components Measures Measures the source of the business model to analyze its usefulness 10 components of business models, compare each one. Check benchmark questions to further detail Table 9.2 pg 163
