What is Business Model?  

The business model spells-out how a company makes money by specifying where it is positioned in the → value chain . It describes how a business positions itself within the value chain of its industry and how it intends to sustain itself, that is to generate revenue.  >>>

Customer Focus

Exceptional customer service results in greater customer retention, which in turn results in higher profitability.

Sadly, mature companies often forget or forsake the thing that made them successful in the first place: a customer-centric business model. They lose focus on the customer and start focusing on the bottom line and quarterly results. They look for ways to cut costs or increase revenues, often at the expense of the customer.

They forget that satisfying customer needs and continuous value innovation is the only path to sustainable growth. This creates opportunities for new, smaller companies to emulate and improve upon what made their bigger competitors successful in the first place and steal their customers.

Dynamic Business Models

Today, business models have shorter shelf life. Customer loyalty is fading.  You must keep reinventing the ways of creating customers. Strive for competitive innovation and competitive differentiation. Invent new ways of creating customers. Redesign the infrastructure required to move the product/service to the market in a manner that is both easy and convenient for customers and profitable for the firm... More

New Business Models

Traditional corporations are overstructured, overcontrolled, and overmanaged, but underled. Top managers should rather concentrate on that handful of real managerial leadership and real tasks that will bring success in the future. Thus, a new business model is emerging, a model where "most of key missions of the organization are distributed to the myriad individual pieces and unity comes from the vigor of people and the free flow of knowledge, not a burdensome central headquarters."²... More