Keurig, a coffee machine manufacturer, sells high-quality espresso machines at a very low price but provides low-cost refills of varietal coffee pods at a relatively higher price than rivals. Explain this business model.
What will be an ideal response?
Selling high-quality Keurig machines at a very low price is the company's customer value proposition and then selling low-cost refills at a relatively higher price is the company's profit formula. The two elements of a company's business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition lays out the company's approach to satisfying buyer wants and needs at a price customers will consider a good value. The profit formula describes the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition.
You might also like to view...
Which of the following is the first step in determining an internal skill-based structure?
A. performing skill certification B. describing and evaluating the skills C. performing skill analysis D. arranging skill blocks into a skill structure E. grouping related skills into a single unit
Which is the correct statement about the sociotechnical systems theory?
A. It was developed in the early 1950s by researchers from the London-based Tavistock Institute of Human Relations. B. It was the first major approach to emphasize informal work relationships and worker satisfaction. C. It emphasized the perspective of senior managers within an organization. D. It emphasized a structured, formal network of relationships among specialized positions in an organization. E. Most organizations did not adopt the sociotechnical systems theory for management problems until the year 2000.
Do the following sample data indicate that the variance of the population from which it has been drawn is significantly more than 17? Use ? = .05. X 12 5 9 14 10
What will be an ideal response?
The probability density function f(x) of a random variable X that has a uniform distribution between a and b is
a. (b + a)/2 c. (a - b)/2 b. 1/b - 1/a d. None of these choices.