Chapter 7: Business Models

In this section

• Key Elements of a Business Model
  Key Elements of a Business Model (CFA Level 1): Value Proposition, Customer Segmentation, and Channels of Distribution and Communication. Key definitions, formulas, and exam tips.
• Revenue Drivers and Pricing Strategies
  Revenue Drivers and Pricing Strategies (CFA Level 1): Understanding Revenue Drivers and Pricing Strategies, Core Revenue Drivers, and Pricing Approaches. Key definitions, formulas, and exam tips.
• Cost Structures and Scalability
  Cost Structures and Scalability (CFA Level 1): Fixed vs. Variable Costs, Economies of Scale, and Operating Leverage. Key definitions, formulas, and exam tips.
• Identifying Competitive Advantages
  Identifying Competitive Advantages (CFA Level 1): Differentiation and Cost Leadership, Balancing Both Approaches, and Sustainable Advantage. Key definitions, formulas, and exam tips.
• Innovations and Disruption in Business Models
  Innovations and Disruption in Business Models (CFA Level 1): Disruptive Innovation, Incremental vs. Radical Innovation, and Technological Leaps. Key definitions, formulas, and exam tips.
• Behavioral Aspects of Management Decisions
  Behavioral Aspects of Management Decisions (CFA Level 1): Cognitive Biases in Managerial Decision-Making, Groupthink vs. Diverse Teams, and Risk Appetite. Key definitions, formulas, and exam tips.
• Platform and Subscription-Based Models
  Platform and Subscription-Based Models (CFA Level 1): Defining Platform Business Models, Network Effects, and Subscription Revenue Streams. Key definitions, formulas, and exam tips.
• Network Effects and Competitive Moats
  Network Effects and Competitive Moats (CFA Level 1): Direct Network Effects, Indirect Network Effects, and Competitive Moats. Key definitions, formulas, and exam tips.
• Partnerships and Strategic Alliances
  Partnerships and Strategic Alliances (CFA Level 1): Defining Partnerships and Strategic Alliances, Key Differences: Joint Ventures vs. Strategic Alliances, and Motivations for Partnerships and Alliances. Key definitions, formulas, and exam tips.
• Corporate Reputation and Brand Value
  Corporate Reputation and Brand Value (CFA Level 1): Reputation as a Strategic Asset, Building Brand Equity, and Crisis Management and Recovery. Key definitions, formulas, and exam tips.
• Cybersecurity and Technology Risk
  Cybersecurity and Technology Risk (CFA Level 1): Understanding the Evolving Cyber Threat Landscape, Data Protection and Encryption as Core Defenses, and Operational Resilience: Ensuring Business Continuity. Key definitions, formulas, and exam tips.