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190 contributions
190 ideas
190 ideas
189 ideas

Business Model

Pick ONE interesting company.  You can build on your first challenge and pick the same company, you can build on someone else’s challenge (and focus on the company they chose) or you can pick a completely new company.  Describe this company’s value capture model (if the company is big you can focus on one of their businesses) in a 500 word post.
  • Briefly describe the company/organization you selected
  • Summarize super quickly how the company creates value
  • Now dive into the company’s model for capturing value
  • How does the company make money?  How does it price its goods?  Who does it charge?
  • Does the company use price discrimination effectively?  Does it use a “freemium model”?  Does it bundle its goods? 
  • Is the value capture model effective?  Why or why not?

By Sunday March 9st, 5:00 pm contribute 500 word post on how the company you selected captures value.

By Monday March 10nd, 5:00 pm contribute 2 short comments on other posts.

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With a $41 billion valuation, the popular ride-sharing app Uber is approaching the ranks of established companies like FedEx and Ford. It represents an audacious bet by investors, who poured $1.2 billion into the last funding round, that the company will continue to disrupt logistics.

With a $41 billion valuation, the popular ride-sharing app Uber is approaching the ranks of established companies like FedEx and Ford. It represents an audacious bet by investors, who poured $1.2 billion into the last funding round, that the company will continue to disrupt logistics.

Photo of Nimi Katragadda
9 5

Reserve is an app that allows users to make reservations at high-end restaurants for a $5 fee. After the meal, the check is settled automatically through the app, so the diner can leave without waiting for the bill, giving a credit card, and signing to complete the transaction.

Reserve is an app that allows users to make reservations at high-end restaurants for a $5 fee. After the meal, the check is settled automatically through the app, so the diner can leave without waiting for the bill, giving a credit card, and signing to complete the transaction.

Photo of Amit Arora
9 5

On the surface, DoorDash may seem like yet another delivery service, but the premise of the company is actually in its differentiated software. The company's current value capture model follows that of a typical delivery service, but is used as a way to keep the company sustainable while it unlocks further value in the development of its logistics platform.

On the surface, DoorDash may seem like yet another delivery service, but the premise of the company is actually in its differentiated software. The company's current value capture model follows that of a typical delivery service, but is used as a way to keep the company sustainable while it unlocks further value in the development of its logistics platform.

Photo of Christina Ting
8 0

Traditional investment advisors charge on average 1.31% per year to manage invested assets.  Wealthfront, the largest automated investment advisor, charges less than a fifth of this price.  As a software-based substitute to human advisors, Wealthfront’s economics enable it to scale at very low marginal cost.  By leveraging a freemium model to attract customers and providing premium tax optimization features to higher fee-paying customers, Wealthfront has grown to manage over $2 billion in three years.

Traditional investment advisors charge on average 1.31% per year to manage invested assets. Wealthfront, the largest automated investment advisor, charges less than a fifth of this price. As a software-based substitute to human advisors, Wealthfront’s economics enable it to scale at very low marginal cost. By leveraging a freemium model to attract customers and providing premium tax optimization features to higher fee-paying customers, Wealthfront has grown to manage over $2 billion in three years.

Photo of Andrew Ling
8 3

Addressing the rising supply and demand for boutique fitness, ClassPass created a two-sided platform to connect consumers with boutique exercise studio owners. All this under the mission of helping people get more active and healthy. With over 1,000 classes in nine U.S. cities (and counting) in its system, the post-Series-B startup is well staged to capture value.

Addressing the rising supply and demand for boutique fitness, ClassPass created a two-sided platform to connect consumers with boutique exercise studio owners. All this under the mission of helping people get more active and healthy. With over 1,000 classes in nine U.S. cities (and counting) in its system, the post-Series-B startup is well staged to capture value.

Photo of Stephanie Chevalier
7 1

Airbnb has upended the hospitality industry with its platform that connects hosts with world travelers looking for an alternative to hotels. Airbnb is essentially a volume play and has captured value by continuing to expand rapidly across the globe and as the idea of staying in strangers' homes has been increasingly accepted.

Airbnb has upended the hospitality industry with its platform that connects hosts with world travelers looking for an alternative to hotels. Airbnb is essentially a volume play and has captured value by continuing to expand rapidly across the globe and as the idea of staying in strangers' homes has been increasingly accepted.

Photo of Diana Lee
6 2