What is Business
The business model spells-out how a company makes money by specifying where
positioned in the
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.
results in greater
which in turn results in higher
mature companies often forget or forsake the thing that made them
successful in the first place: a customer-centric business model. They lose
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
is the only path to
sustainable growth. This creates opportunities for new,
companies to emulate and improve upon what made their bigger competitors
successful in the first place and steal their customers.
Dynamic Business Models
business models have
shorter shelf life.
Customer loyalty is fading. You must keep reinventing the ways of
competitive innovation and
competitive differentiation. Invent new ways of
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
for the firm...
New Business Models
Traditional corporations are overstructured, overcontrolled, and overmanaged,
should rather concentrate on that handful of
real managerial leadership and
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...