Business Models For Dummies

Chapter 6

Finding the Most Attractive Markets to Create a Powerful Offering

In This Chapter

Picking the right industry

Gauging the most attractive customers

Getting the niche right

Choosing the best spot on the industry value chain

The most important step toward creating a great business model is creating a product that customers want and will buy. This is called a powerful offering. The first step in creating a powerful offering is selecting the right market. Picking the combination of industry attractiveness, niche attractiveness, and customer attractiveness creates the best market for your product.

By combining industry attractiveness, niche attractiveness, and customer attractiveness, you can understand the overall market potential. I refer to this combination as the market attractiveness from this point forward. Market attractiveness is one of the most important aspects of your business model. It’s difficult to imagine a strong business model that sells to lousy customers in ...