<< Chapter < Page Chapter >> Page >

Business Fundamentals was developed by the Global Text Project, which is working to create open-content electronictextbooks that are freely available on the website http://globaltext.terry.uga.edu. Distribution is also possible viapaper, CD, DVD, and via this collaboration, through Connexions. The goal is to make textbooks available to the manywho cannot afford them. For more information on getting involved with the Global Text Project or Connexions email us atdrexel@uga.edu and dcwill@cnx.org.

Editors: George M Zinkhan, Anastasia Thyroff, Anja Rempel, and Hongbum Kim (The University of Georgia, USA)

Reviewer: Bettina Cornwell (University of Michigan, USA)

A good business model is a story that explains how an enterprise is designed to work (Margretta 2002). A business model identifies sources of competitive advantage and describes the firm’s pathway to profitability and success. From a marketing perspective, the business model describes customers and what they value. From a managerial perspective, the business model describes how an organization makes profit. See [link] .

In this section, we review some emerging models in the music industry, in order to illustrate how such models can serve as a source of innovation. That is, a traditional way for organizations to remain profitable is to introduce a series of related goods. As shown earlier in [link] , the organization introduces eight products (labeled A through H). Over time, the sales for product A begin to decline, so the organization is under considerable pressure to introduce new successful products. If [link] represents the cumulative sales for a record label, then product A might be a hip-hop CD, while product B is a CD created by a rock artist. In this section of the chapter, we present an alternative source of innovation—the innovation that results from successfully introducing new business models. All our examples are derived from the music industry, but related industries (e.g. films, books) are undergoing similar transformations and creating similar opportunities for entrepreneurs.

Examples of business models from the music industry

Since the late 1990s, the availability of online music has caused a lot of confusion in the marketplace. Traditional business models are no longer applicable for explaining the current business opportunities. The music industry in the twenty-first century provides a classic illustration of a “disruptive technology”, whereby new technologies drive out established technologies and established ways of doing business.

Here, we briefly review eight business models in the music industry. We distinguish among these models via five characteristics: current implementation, feasibility, legality, consumer satisfaction, and record label satisfaction (See Table 3). Note that some of these models are currently implemented, while others are speculative in nature.

Traditional business model

In this business model, the artists create music and try to be signed by a record label. After the artist is signed by a record label, then that organization provides a number of services, including financing music recording and production; organizing concert tours; producing and selling merchandise; marketing the band’s creation; promoting the band through exposure on mass media; and more.

Questions & Answers

who is the first person who discover the cell
Etornam Reply
what's the difference between DNA and RNA
moffat Reply
DNA is double strained And RNA is singled strained
Only
what is a fungi
Anaba Reply
What is meant by adaptation?
Agbesi Reply
who is the father of evolution
Ferkah Reply
Charles D
Dr
complete the table below based on the levels of biological organization
Lovely Reply
Give me Examples of living thing which have 2 or more flagella?
Mahesh Reply
insect and plants
qax
bacteria and chlamydompnas
Berhanu
reproduction it's full meaning
Gift Reply
full meaning of ATP
Gifty
A life process in which living things increase their population through sexual or non sexual intercouse
Danisha
please explaination
Daniel
Gifty ATP means Adenosine tri phosphate
Mahesh
the process by which organisms produce their own kind.
Berhanu
who is the father of Biology
Ferkah
reproduction is the process where living organisms producess their offspring
jerry Reply
what is reproduction
Nmesoma Reply
why some kinds of students are failed
Ahmadi Reply
lack of concentration
Faith
lack of guidance and counseling
ali
what's the divination of openstax
John
don't mind about reading
aine
lack of focus
Afolayan
Inability to study at their own pace.📒
Agbesi
Inability to study at their own pace.📒
Agbesi
What is the meaning of optic
Kisaky Reply
Giving a specific section of the alimentary canal,describe 3 ways in which physical digestion occurs.
Kisaky
mouth when chewing
ephraim
what is population
Ivy Reply
total number of people living in an area
FILDA
a number of people lives in one catigorize area or named area
Oburak
total number of people living in a specific geographical area.📕
Agbesi
total number of people living in a specific geographical area.📕
Agbesi
what is a cell
Chiko Reply
basic and functional unit of life
Edwin
cell is tissues that makes up functional life in human or un animal.
Oburak
is the smallest basic unit of life.
Kisaky
Is the smallest baic unit. o
Kisaky
why cell is very important to human body
Ahmadi
what is diffusion
Henry
diffusion is a process of mix of particles from higher concentration to the lower one,to make the body functional normal
Adam
what is effusion
Mahesh
what is soil
FILDA Reply
Is the finely divided material covering the earth crust.
Kisaky
is the upper moist of layer of the earth surface
Ahmadi
The natural material that covers the surface of the earth crust.📖
Agbesi
in a comparison of the stages of meiosis to the stage of mitosis, which stages are unique to meiosis and which stages have the same event in botg meiosis and mitosis
Leah Reply
different types of company
Jamshaid Reply
how to write research title on lean?
GUTU Reply
what is business plan
Sthembiso Reply
how to startup business
Mahesh Reply
A canal is more of a need then a cavity
Commander Reply
what is electronic banking
Segun Reply
what does it mean business eco system?
Mohammed Reply
what is business
Abdul Reply
how can i know my business best resources, cheap and good quality
cabdi Reply
vikash rawat
jagvir Reply
entrepreneurial mobility
Manish Reply

Get the best Business fundamentals course in your pocket!





Source:  OpenStax, Business fundamentals. OpenStax CNX. Oct 08, 2010 Download for free at http://cnx.org/content/col11227/1.4
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Business fundamentals' conversation and receive update notifications?

Ask