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assessing threats

We’ve described how business models are situated within specifi c envi- Value Proposition Threats
ronments, and shown how external forces such as competition, the legal
Are substitute products and
environment, or technology innovation can infl uence or threaten a business 12345
services available?
model (see p. 200). In this section we look at threats specifi c to each busi-
Are competitors threatening to
ness model Building Block, and provide a non-exhaustive set of questions 12345
offer better price or value?
to help you think about ways to address each threat.
Cost/Revenue Threats
220
Are our margins threatened by 12345
competitors? By technology?
Do we depend excessively on one 12345
or more Revenue Streams?
Which Revenue Streams are likely 12345
to disappear in the future?
Which costs threaten to become 12345
unpredictable?

Which costs threaten to grow 12345
more quickly than the revenues
they support?

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