1. TODAY’S CLASS 5:00-6:15 Where are we now? Business Models
6:15-6:30 Break
6:30-7:50 Group Meeting

2. Jun 97 Acquired Tandem Computers ($3 billion)
Selling Compaq Computers Online
Jun 97 Acquired Tandem Computers ($3 billion)
Jan 98 Acquired DEC ($9.6 billion)
Nov ,000 Resellers in the world
(80% of sales by partners)
Nov 11, 98 Announced “Customer Choice”
Spring 99 Sales lower than expected
CEO Eckhard Pfeiffer was fired
Michael Capellas become the new CEO

3. Last Class: Framing Market Opportunity
(i.e. where will the business compete)
Today: Business Models
(i.e. how will the business win)

4. Homework due next session
Prepare Case: Priceline Webhouse Club
Read two articles:
“Beyond the Exchange: The Future of B2B”
“Internet Pioneers: We have lift-off”

5. BET.COM BUSINESS MODEL

6. Specify the value proposition or value cluster for the business
Items include:
- Choice of target customer segments
- Choice of focal combination of customer-driven benefits
that are offered
- Rationale for why this firm and its partners can deliver
the value cluster significantly better than competitors