ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS
CHAPTER 10
THE BUSINESS MODEL
LEARNING OBJECTIVES
After studying this chapter, students should be able to
2. Explain the drivers of value
4. Discuss the reasons why business models fail
CHAPTER OVERVIEW
Technology is only one piece of the equation. Equally important is the issue of how to make money
and create value for shareholders, investors, customers, and value chain partners. The biggest
CHAPTER OUTLINE
1. Developing a business model
a. Strategic positioning in the value chain
Entrepreneurship for Scientists and Engineers
2. Understanding why business models fail
3. Summary
END OF CHAPTER QUESTIONS
1. Why is it important to identify the entrepreneurial firm’s position in the value chain?
The value chain tells the entrepreneur who its customer is (the company or individual who
2. What is the purpose of the business model?
The business model describes how the technology product will create value for the
3. Why do many business models fail?
Business models fail for three primary reasons: 1) using faulty logic in making predictions
4. Why do business models change and what are the implications of this for entrepreneurs and
their business strategies?
Business models will change over time due principally to feedback from the market. What
CASE STUDY SUGGESTIONS
The Pandora case study offers a chance to emphasize key concepts from the chapter.
Entrepreneurship for Scientists and Engineers
• When do you call it quits? Your students can probably tell stories of entrepreneurs who
were just about to quit when they hit on the right business model or right customer and
ACTIVITY
Identify a Business Model
Ask students in small groups to identify a technology of interest. Then have them graphically
depict the value chain for that technology going upstream to the original source and showing all