۱۳۹۲ تیر ۲۵, سه‌شنبه

Key Concepts We'll use a framework for analyzing a business throughout this course We'll start by looking at a simple business: DUB Pies, a small Brooklyn bakery that sells pies online. Analyzing this business will illustrate the following important points: You can't understand a business until you understand how it makes a profit Profit is revenue minus costs Business financial performance is measured in financial reports Revenue is the product of the price you get and the quantity you sell: revenue=price* quantity Cost include fixed and variable costs The internet can increase revenue from online sales for an existing business, but selling online also involves some extra costs The most important costs include shipping and handling, customer acquisition and transaction costs Customer acquisition cost is the cost of getting a customer Customer acquisition cost depends on the cost of advertising and the conversion rate Online advertising costs are frequently based on cost per impression or cost per click Online businesses succeed through economies of scale Cost per unit decreases as quantity produced increases Examples: classroom size and online learning; take-out food Critical feature of internet business is high fixed costs and low variable costs To be successful a business needs a good business model. A business model answers two questions: Who will buy and why? People buy because of the value they get — that's the concept of a value proposition Why will the business be profitable? You figure out when an internet business is viable by looking at the extra revenue and extra cost incurred - see DUB Pies example and homework All businesses - including online businesses - need a marketing strategy and a business strategy A marketing strategy is a plan to acquire and retain profitable customers A business strategy is a plan to beat your competition You need to be able to calculate profitability using operating margin Learn how to read the Statement of Operations (a.k.a Profit and Loss or P&L statement) for a public company Internet businesses need a web site You need to understand the basic elements of a web site: HTML and CSS Site content Transactions


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