The
business model focus is on
→
Value Creation. While the
→
Business Model also addresses how this
value will be captured by the firm,
strategy
goes further by focusing on building a
→
Sustainable Competitive Advantage.
❷
Business Value
vs. Shareholder Value
The business model is an architecture for converting
→
Innovation
to
economic value for the business. However, the business model
does not focus on delivering that business value to the shareholder.
For example, financing methods are not considered by the business
model but nonetheless impact shareholder value.
→
7 Routes To
High Profits
❸
Assumed Environmental Knowledge Levels
The business model assumes a limited
environmental knowledge, whereas strategy depends on
a more complex analysis that requires more certainty in the
knowledge of the environment.