Latest Terms

Business ecosystem
Business ecosystem is a term that means a group of platform operators and complementary operators . For example, a product called iPhone consists of a platform operator called Apple, which has iOS software and terminals (iPhone), and a complementary operator that provides apps, accessories, communication lines, and so on. In recent years, the platform business has been attracting attention, but the term "ecosystem" is a combination of the operator responsible for the platform and the complementary operator for that operator, " one ecosystem (ecosystem) . By metaphorically understanding it, it is a way of thinking used when considering the strength ...
Vertical integration
Vertical integration is a business model in which all processes in the supply chain from product research and development to manufacturing and sales are carried out within the company group. If the company does not have a process to manufacture or sell products, it may acquire the resources of other companies and integrate them by acquiring a company. When it comes to vertical integration, traditional manufacturing industries such as the automobile industry are known as typical examples, but since the 2010s, such as GAFA (Google, Apple, Facebook, Amazon) and Netflix. Digital companies are also expanding their markets through vertical integration ...
Multi-level marketing (MLM)
Multi-level marketing(MLM) is a business model in which salespeople who sell their own products are set up outside the company, the salespeople are hierarchized vertically, and the higher-ranking person obtains a sales margin from the lower-ranking person . Also known as " network business " or " MLM ", top salespeople scout new salespeople from their customers and sell them in a network. Increase channels and new customers. In the MLM, "the more excellent salespeople in the lower hierarchy, the higher the salespersons will benefit", "because the customer becomes a salesperson, the experience stories and other convincing powers are high" ...
Open business
Open business is a business model that creates value that cannot be achieved by individual companies by collaborating with other companies and sometimes consumers on research and development that is normally done only by the company . R & D of new technologies and new products is monopolized by the company and is usually carried out in a closed environment, but in recent years, the life cycle of technologies and products has become shorter, and more speeding up of R & D is required. It came to be. Therefore, by opening up our own technology and developing products, an open ...
BOP
BOP is an abbreviation for "Bottom of the Pyramid" and is a idea of ​​doing business targeting low-income people in emerging countries who live on less than $ 3,000 a year . The population belonging to this BOP group is said to be 72% (about 4 billion people) of the world population, and the market size is said to be about 5 trillion dollars. This is said to be on par with Japan's real GDP. The BOP class in emerging countries has a large population volume and is attracting attention as a new market in the world economy. The main ...
Lean canvas
Lean Startup is one of the methodologies for increasing the success rate of entrepreneurship and new business development. As a specific example, we emphasize repeating business hypothesis testing quickly without spending a lot of money , and business ideas and product planning while grasping customer reactions in a short period of time. It means to correct the trajectory many times . Even in the United States, which has a positive awareness of entrepreneurship, it is said that only 3 out of 1,000 companies can survive the start-up period after the company was founded. Against this background, "Lean Startup" was developed ...
Rock-in
Lock-in is a general method for companies to retain customers in order to build long-term relationships with existing customers . It is also called "lock-in strategy" in management terms and "lock-in effect" in economic terms. For example, when a consumer purchases a product of some manufacturer, when the product is replaced, the product of the same manufacturer is used. It is the effect of purchasing and maintaining the relationship with the customer. The reason for this is that if you change the manufacturer when you buy a new one, the cost (switching cost) required at that time will be high, ...
フランチャイズチェーン
A franchise is a company that has excellent products and services, and provides people and businesses aiming to open independently with the right to sell their products and services, trademarks, collation, and management know-how, with the aim of developing multiple stores. It is a business model that earns royalties while doing so. The side that grants the rights is called "franchisers" or "headquarters" , and the side that grants rights is called "franchisees" or "merchant" . , According to the franchise agreement, the franchisor establishes rules, deployment methods and regions of deployment, and gives the franchisee the obligation and right ...
No-frills
No-frill is a business model that eliminates extra services as much as possible , but does not reduce the quality of core services, and provides users with a reduced price as much as they are omitted. By narrowing down to the minimum necessary services, we will attract a customer base that dislikes waste. Non-frill means "no decoration", and there are various ways to omit services depending on the company. In many companies, airliner companies sacrifice comfort to carry as many passengers as possible. Currently, services with no-frills as a business model are spreading not only to the passenger aircraft industry ...
Crowdsourcing
Crowdsourcing is a service that mediates between a "company" who wants to procure goods and services necessary for business and an "individual" who undertakes the work . Until now, as a means for companies to procure internal and external operations to the outside, there was "outsourcing" outsourcing to other companies, but crowdsourcing is outsourced to individuals. Traditionally, it cost a lot of money for a company to find an individual outsourcer, but with the advent of crowdsourcing platform businesses on the Internet, outsourcing from entrepreneurship to individuals has exploded. "Crowdfunding" is a fund-raising version of crowdsourcing. Competition type The competition ...
Modularity
Modularity is the construction of complex products and business processes with small subsystems that can be designed independently and function in a unified manner as a whole . By the way, the antonym of modularization is "integration". For example, I will explain the relationship between a word processor and a PC. , A word processor is an "integrated" product that functions by integrating input and printing for creating documents into one unit, but a PC has a fixed OS and "document creation software", "spreadsheet software", and "game software". It is a "modularized" product that can be created and used separately ...
ボランタリーチェーン
Retailers' cooperative is a business model in which individual independent retailers build an organization together with retailers with the same purpose to create a chain store-like mechanism . There is a franchise in a similar business model, but in Retailers' cooperative,the franchise stores themselves form the headquarters, whereas in the franchise, the headquarters and the franchisees are separated. Strengthening sales capabilities by selling products at multiple retail stores, and at the same time collecting information obtained in daily sales activities at the headquarters. It can be said that the strength of Retailers' cooperative is that they can efficiently carry out ...
Open source
Open source is a software development method in which source code (computer programs) is open to the public and programs are developed by an unspecified number of volunteer developers . Software developed by open source is called OSS (Open Source Software) . Since the source code of software is the crystallization of technical capabilities and know-how, it is usually kept secret by companies. For example, many of Apple's software source coats aren't open. OSS, on the other hand, is often free to use, and programs are allowed to be modified and redistributed. And it is being improved day by day ...
O2O
O2O is an abbreviation of "online-to-offline" , and as the name suggests, takes some approach to consumers via the Internet to bring them to real stores. Business model . An easy-to-understand example of O2O is a coupon site, where restaurants and hotels recruit purchasers of coupons for a limited time on the coupon site, and the coupon is issued when the specified number of people decided by the store wishes to purchase. It is a mechanism called. Since the number of people can be freely set and the conditions cannot be met, the actual store can provide the coupon service ...
Network effect
Network effect means that the size and frequency of use of a user affects the utility value of the product or service . For example, if you ask "Why are you using Facebook or Twitter?", You will answer "because people around you are using it" and "because you can't interact with people without it." In such cases, it can be considered that the utility value is determined not by the function or quality of the product or service, but by the number of users or terminals. The number of users and terminals is called " network scale ". The network ...
Mass customization
Mass customization is mass production while selling products and services that meet the needs of individual customers . Mass means "mass production" and customization means "customization". Simply put, it means "custom-made mass production". In the 1990s, Joe Pine wrote "Mass Customization Revolution: Innovative Management Aimed at Reengineering", which was still difficult to realize when the concept became widespread, but as a result of recent technological advances, mass customization Is now possible. Making products that match customer tastes at low cost is a top priority for the manufacturing industry, and although custom-made products that meet customer demands increase customer satisfaction, an ...
De facto standard
De facto standard is a standard that has established a dominant position through competition in the market and has become the “virtual” industry standard as a result . In general, in newly launched markets, it is often the case that multiple leading standards are rife. However, in the midst of market competition, products based on one standard will dominate the market. As a result, the predominant standard has become virtually recognized as an industry standard, despite the lack of official certification, and such standards have been referred to as the " de facto standard". ". "De facto" means "de facto" ...
プラットフォームビジネス
Platform business model is a business model that makes a profit by providing a "place (platform)" for buying and selling and exchanging information . Also known as "platform strategy", "platform model", or "multi-sided platform" , it attracted attention because it was proposed by Andrei Hagiu, an associate professor at Harvard Business School in 2006. I did. By creating a "place" for the purpose of buying and selling and exchanging information, we gather people and companies with diverse needs such as sellers and buyers. The platform itself has existed for a long time, but with the spread of the Internet, new ...
Synergy
The synergy is to exert a synergistic effect between management resources by combining different management resources. The effect of combining the management resources of two different businesses makes 1 + 1 more than 2 . Specifically, when a company launches a new product, the existing sales channel or This refers to cases where the initial investment cost can be reduced by utilizing production equipment. As a result, the new profits will be greater than building production equipment or building sales channels from scratch. In addition, there are cost reduction effects by sharing equipment and improving purchasing negotiation capabilities, and mutual ...
Diversification
Diversification is expanding the scope of a company's products and markets by adding new businesses to existing businesses . It is a type of product market strategy advocated by Ansoff, and is a management strategy that aims to grow by launching new products in new markets. This will be achieved by expanding the management resources of a company to new products and markets, and by expanding and developing existing management resources. It is positioned as one of the important strategic options for corporate growth, and is often promoted with the concern that the profitability of existing businesses will decline, or ...
SPAとは
SPA(Specialty store retailer of Private label Apparel) is the business model that completes everything from standardization to sales of own-brand products in-house. Until then, apparel manufacturers took the lead and trading companies, wholesalers, and retailers played their respective roles, but now retailers are in charge of planning, designing, manufacturing, material procurement, and distribution. It is a business model that has permeated mainly in the fashion industry, and as SPA is translated as manufacturing and retailing, a retailer that handles clothes and fashion miscellaneous goods takes the lead in product planning and design, manufacturing, and sales. I will. In the past, ...
Growth–share matrix
Growth–share matrix, or product portfolio matrix, evaluates the attractiveness of a business and the competitiveness of the company for each business, distinguishes between businesses that generate cash and businesses that require investment, and then clarifies the positioning of the company. It is intended to be positioned as one of "Cash cows", "Stras", "Question marks(problem child)", and "Dogs" . After positioning, we will decide the future strategy of each positioned business. Invented by the Boston Consulting Group in 1970, it finds surplus management resources in terms of profitability, investment necessity, etc. in each independent business of a company, and decides where ...
日本のフィンテックサービス
FinTech is a coined word coined from "Financial" and "Technology" and refers to financial services that make full use of IT. It is also called " Neobank " because it provides services such as settlement, financing, asset management, and stock trading that traditional financial institutions have been responsible for instantly across national borders. It is a concept that has developed mainly in the United States since the Lehman Shock in 2008, and by utilizing IT such as the Internet, cloud, and big data for financial services that were almost monopolized by financial institutions, it becomes more convenient and more convenient ...
Cloud
Cloud (official name: cloud computing) is a system located in another location via the Internet line, instead of managing data such as images and texts by physically placing a server at home or in the office. Refers to the mechanism to use. It's not the name of the technology. In other words, it is a service that benefits from connecting to the Internet, and conversely, most services cannot be used unless it is connected to the Internet. You can access and do business from various terminals such as smartphones and tablets anytime and anywhere without downloading what was previously downloaded ...
Economies of scale
Economies of scale means that if production scale is expanded, the average production cost per unit of product will decrease as the production volume increases. Therefore, it is widely used in industries that require large-scale production equipment in one business. By pursuing one business more deeply, the know-how and technology of the company will be accumulated and the cost of production per unit will be reduced. Therefore, the larger the production scale, the lower the cost per unit and the higher the profit of the company. In industries where economies of scale are working, it is often difficult for new ...
Economies of scope
Economies of scope is an economic phenomenon in which the cost per unit of a product or service decreases as the types of products and businesses handled increase. In other words, the cost per unit is lower if one company conducts multiple businesses and shares management resources rather than manufacturing one product individually. Unlike economies of scale, economies of scale aim to reduce production costs by expanding production in a single business, while economies of scope are a combination of multiple businesses. With the aim of saving production costs in , and pursuing economies of scope is to share some ...
Razor and blade Model
Razor and blade Model is a business model in which the main body of the product is provided free of charge or at a low price, and accessories are continuously sold as consumables to maintain profits. This name is derived from the adoption by Gillette, a razor maker that sells men's shavings. Examples and companies that utilize the Gillette model are as follows. (Main body → Accessories) Razor and replacement blade As mentioned above, this is the product from which the Gillette model was derived. Nowadays, the sales style of this men's razor is common, but in the past, products ...
フリーミアム
Freemium is to provide basic services for free to acquire many customers, and to have some users purchase advanced features and easy-to-use paid versions to increase profits . Business model. Freemium is a coined word that combines "free" and "premium" created by American investor Fred Wilson, and was written in detail in Chris Anderson's own book "Free". It became known at once. Until now, there have been "free models", and the mainstream was to make profits from advertisers rather than from viewers and readers, such as radio and free papers, but as IT advances, the cost of content and services ...
Economies of density
The economy of density is the economic effect that opening stores intensively in a specific area reduces costs such as transportation costs and advertising costs . In order to obtain the economic effect of density, the minimum requirement is whether or not it is possible to secure sales that exceed the operating costs of stores and distribution centers. Opening the first store in Kanto, the second store in Tokai, and the third store in Kansai seems to be effective for brand advertising, but it is actually an inefficient example. For example, if the central area of ​​the business is Kanto, ...
Economies of speed
Economies of speed is the economic effect that can bring economic benefits by speeding up the business and its management. Specifically, it will increase the speed of product development, production, and sales, speed up information acquisition, work speed, product development speed, and product turnover speed, and companies will enjoy the benefits of increasing effectiveness and efficiency. I will. For companies, by quickly developing their businesses and operations, it is possible to quickly identify top-selling products and dead-selling products, and to secure profits by quickly adding top-selling products to the field. Advantage of starting lineup The advantage of the starting lineup ...
Incentive
Incentives are motivations and motivations that change employee decision-making and behavior, and are typically monetary compensation. However, monetary compensation is not the only incentive, and as will be described later, bosses, colleagues, individual evaluations, ideas, values, treatment, etc. are also incentives , and academically, "Maslow" It is deeply related to the "five-step theory of desire". Translated as "incentive" in Japanese, if the incentives required by employees can be fully met, the organization's efforts for employees, the reduction of turnover rate, or the mission to be beneficial to the entire organization It is said that it can create a feeling. The ...
ロングテール
The long tail is a business model that not only sells well-selling products, but also has a large number of dead-line products that hardly sell, and matches dead-line products with people who have their needs to increase sales. Until now, it has been thought that it is the best-selling products that bring profits to the company, not the deadly products, but due to the spread of the Internet , the promotion cost of deadly products is increasing. It almost disappeared. The long tail was published by Chris Anderson, editor-in-chief of the American business magazine "Wired". When the sales volume of ...
マトリックス組織
The matrix organization is an organizational structure that has the characteristics of both a divisional organization and a function-based organization. A matrix means a matrix in mathematics in which numbers and letters are arranged vertically and horizontally, and as shown in the figure above, it has a dual structure in which divisions are organized vertically and organizations by function are organized horizontally. Although it is based on a divisional organization, each function within the division is also organized as a company-wide organization. The overall organization of the organization should not be centered on a single division axis, but should also ...
Functional structure
Function structure is one of the structures of a management organization, and refers to an organization that is organized according to work content such as development, sales, production, personnel, and accounting, along with divisional organization and matrix organization. This is the basic organizational structure of. It is said that the origin of the functional organization is Germany, and it is said that the division of corporate activities into engineering (research, development, production) and business (marketing, sales, etc.) is the beginning of the functional organization. After that, French business scholar Henri Fayol subdivided it into six functions: technical, sales, finance, accounting, ...
Divisional structure
Divisional structure is one of the basic organizational structures as well as functional organizations and matrix organization ,and this organization is divided into roles according to the products and services provided.(ex. Television Division, Refrigerator Division, etc.) In addition, it is applied not only to each product or service, but also to each region and customer. Basically, it is an organizational structure adopted by companies engaged in multiple businesses. The division organization was devised by DuPont and it is believed that Alfred Sloan applied to General Motors. The divisional organizational structure is divided into three main types, and the type of ...
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