Marketing Management, 16th Edition

Business-Model Design

Up to this point, the product has existed only in the form of a description, a drawing, or a prototype. The next step represents a jump in investment that dwarfs the costs incurred so far, requiring the company to determine whether the product idea can be translated into a commercially feasible offering. Business-model design also takes the offering’s viability—its value-creating capacity—into consideration, in addition to concept development’s focus on the technological feasibility and the desirability of the offering. If the business model is validated, the concept can move to the development stage. If the business-model analysis suggests that the offering is unlikely to create market value for the company and its customers, ...