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Business model innovation under the new normal

The seventh lecture of the elective class, "Foundation of Entrepreneurship" was held in erjiao 207, on April 5th in 2016. In this course, Professor Dongmin Chen taught students of business model innovation under New normal. Professor Chen vividly described recent innovative business models, and their growing at an unprecedented scale and speed which would change the industry structure.

In the class, Professor Chen spoke about the form of business models and innovative business models, and he also analyzed the substance of certain business models. He proposed that the business model is a very broad conception, including the operating model, profit model, B2B mode, B2C model, "Click and Mortar" model, advertising revenue model, and so on. The business model is a form of simplified business logic which can be divided into two categories: operational business models and strategic business models. All in all, the business model has to solve the long-term deep-seated logic of making money, which enables enterprises to have core competitiveness.

During the course, Professor Chen examined the Starbucks success story in detail. Starbucks’ success has two main reasons. Firstly, from the outset, the coffee shops have only opened in the busiest downtown intersection. The rents are very high in these lots, but the very eye-catching positions act as the most natural advertisement for Starbucks. Secondly, globalization has brought unprecedented opportunities for brands like Starbucks.

In this lecture, students learned how to make innovative business models. Professor Chen also answered any practical questions the students had for him.