The NBA’s New Business Model: Air Ball

After allegedly losing money for the last 11 seasons the NBA decided to alter its business model. This led to a 149-day lockout that claimed the first 7 weeks of the regular season and cost the NBA an estimated $480 million. As with most labor disputes the issue at hand was money. The players wanted [...]

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Blockbuster Misses a Golden Opportunity…Again

This summer, Blockbuster was full of glee. Titled “Blockbuster Rescues Furious Netflix Customers,” a press release in July promised to give Netflix customers an oasis after their upstart competitor blundered with its failed Qwikster service. The company launched a promotion to lure customers aware from Netflix and back to the once ubiquitous national movie rental [...]

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After Crushing the Movie Rental Business Model, Netflix Crushes Itself

Netflix saw a meteoric rise in its stock price in 2010 after successfully weathering the devastating financial crisis that stifled wages, depressed consumer demand, and threatened just about every other retailer in existence. This was largely thanks to its relentless investment in video streaming and rising broadband access throughout the country after inventing a new [...]

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Bank of America Nearly Destroys Their Business Model

Bank of America may have committed the #1 business model blunder of 2011for their $5 debit card fee. First, let’s get some background. Spoiled U.S. banks have become so addicted to high-profit fees that they seem to have forgotten the customer. The average bank earns over forty percent of its profit from fees. These include, [...]

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The Free Bar Isn’t Just for the Web

In the world of the web, it is widely understood that you must ethically bribe your visitors with electronic goodies in order to get and hold their interest.  In the good old days of the internet, these free items may have been as simple as a quick quiz, a newsletter, or a short eBook.  As [...]

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LegalZoom Toys with their Business Model

Since bridging the gap between full-service and self-service legal in 2001, LegalZoom has grown to the nation’s best-know legal services organization.  Now LegalZoom is toying with their business model by moving from form filling to prepaid legal plans.  LegalZoom is offering individuals and small businesses a basic legal plan for as low as $15/month. These [...]

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Southwest Airlines’ Business Model Gamble

Southwest Airlines recently reported their first net loss since Q3 2009. Southwest claimed the losses were primarily due to fuel hedge issues. However, I believe there may be a larger issue at play. While most other airlines have increased net revenue by nickel and diming their customers, Southwest has done the opposite. Last year, US [...]

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Scoring Apple’s Business Model Before and After Steve Jobs

Steve Jobs may have been only one man, however, his impact on Apple was both significant and profitable.  We decided to evaluate Apple’s business model with and without Steve Jobs. We ran Apple’s business model through the Business Model Evaluator under both scenarios.  You can see the results in detail below.  Apple’s business model score [...]

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Apple's Business Model: Before and After Jobs 2.0

With the recent passing of Steve Jobs, one question lingers in the minds of techies and business leaders alike: what will happen to Apple without Jobs at the helm? More specifically, what products will Apple release and how will the company's business model change without Jobs to direct the company into new sectors? How long [...]

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Howard Schultz Executes an Unassisted Triple Play

Hats off to Howard Schultz, chairman of Starbucks.  Schultz announced that starting Nov. 1, Starbucks will collect donations of $5 or more from customers to help job growth in the U.S.  With this "Jobs for USA" program, Schultz is collaborating with the Opportunity Finance Network, a nonprofit that works with nearly 200 community development financial [...]

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