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Business Model Design and Learning by Barbara Spencer

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Chapter 1

Why Business Models ­Matter

Recently, I flew home from Canada after attending a conference. As a relatively frequent flyer, I was happy to be upgraded to first class and as my flight was at noontime, I was looking forward to a nice meal on a white tablecloth. To my surprise, on a two-hour flight, all I got was a beverage and some peanuts. When we landed, I found that my luggage had not arrived. As I waited in line to fill out the paperwork, I was not a happy camper.

Why is it that flying anywhere so often turns out to be a frustrating experience? In his blog, Patrick Stähler contends that the airlines are facing problems because their business model is broken.1 Neither the customers nor the firms are receiving the value they seek. ...

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