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Corporate Economic Model
A financial model used to project the economic impact of different strategic choices on the corporation's value.
Implications
A framework that outlines how a company generates revenue, manages costs, and creates value, often used to guide strategic decision-making and financial planning.
Example
Example: A subscription-based streaming service uses its corporate economic model to forecast revenues based on subscriber growth, churn rates, and content acquisition costs.
Related Terms
Different from a business model, which describes the general approach to creating value, the corporate economic model focuses more on the financial aspects of how the business operates and scales.
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