Chapter Summary
A new business is defined by the wants or needs customers satisfy when they buy a product or service. To create a theory of a new business, the entrepreneur mus cogently and clearly describe the customers and their needs and how the venture will satisfy those needs. To describe the business, the entrepreneur prepares a series of statements and propositions that clearly outline the business.

Federal Express: Early History Describes key events in the startup of Federal Express. Outlines the company's value proposition and provides an overview of key competitors in the air freight industry. Teaching Purpose: To use with Teledesic (Abridged), HBS No. 9-804-096, which describes a failed project with a value proposition similar to Federal Express'. To encourage students to compare the two companies and to analyze the nature of network effects in each context. A revised version of an earlier case.
Amazon.com--2002 Describes the evolution in Amazon.com and its business model since its founding. Specifically, discusses Amazon's transformation from an e-Tailer to a commerce platform and its marketplace initiative, which has driven this. Also describes the economics of various commerce models that Amazon employs and a decision confronting Jeff Bezos regarding how the company should participate in the apparel segment. Teaching Purpose: To explore the changing dynamics of the online retailing/e-commerce world and the evolution in Amazon.com's business model that has transpired.
John Thompson: Stick to Core Mission, Focus, and Keep It Simple John Thompson talks about the #1 driver at Symantec - FOCUS! This involved purging products that were not core to our network centric vision. This makes hiring and making partner relationships, among other things, easier. As we move forward we have to continue to innovate and be attentive to customer needs. We believe that execution is what matters. "Its not how good the strategy is, but how well you execute it"
Lynn Reedy: Three Key Factors in eBay's Success Lynn talks about the 3 key factors in eBay's success: 1. Great idea. 2. Great business model - no sales force or inventory. 3. Management team that ensured that eBay was at the right place at the right time.
Note on Business Model Analysis for the Entrepreneur Describes the primary elements and defining characteristics of a company's business model from the perspective of an entrepreneur. Introduces several analytic techniques and provides illustrative examples of business models to support the analytic framework presented. Teaching Purpose: To provide conceptual ideas to enrich case discussions about entrepreneurial opportunities.
Building Your Company's Vision Companies that enjoy enduring success have a core purpose and core values that remain fixed while their strategies and practices endlessly adapt to a changing world. The rare ability to balance continuity and change--requiring a consciously practiced discipline--is closely linked to the ability to develop a vision. Vision provides guidance about what to preserve and what to change. A new prescriptive framework adds clarity and rigor to the vague and fuzzy vision concepts at large today. Managers who master a discovery process to identify core ideology can link their vision statements to the fundamental dynamic that motivates truly visionary companies--that is, the dynamic of preserving the core and stimulating progress.