This presentation discusses the definition of business models and the different types of business models. It also talks about how smart products can disrupt companies, using Volvo as an example. The perspectives of value proposition in business models are also discussed.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
BUSINESS MODEL AND DISRUPTION Name Institution
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Definition •The business model is a unique culture an organization, entrepreneur, and companies make unique to their style of business to increase profits of the company. The business model developed is aimed to ensure sustainability, competing fairly in the market. The business model targets consumers, the best solution to beat the competitors, was to drive the customers to get the products, i.e., advertisement (Bocken, Short, Rana & Evans, 2014). There are different types of business models. Business models are unique to each of the organizations. Some of the commonly used business models are; direct sales, franchise model, freemium model and subscription model.
Smart products and the Volvo Company •Smart products can act as disruptions to companies in conducting their business. The products affect business models of such models of great companies that include Volvo group companies based in Sweden that manufactures service trucks and construction equipment (França, Broman, Robèrt, Basile & Trygg, 2017). The disruption of smart products might influence opportunities in the market or threaten them. •Smart connected products have many, of these physical components that influence the decision of the company through soft wares updates, and made through to allow cars to continually improved and optimized with the visits to the leader (Chesbrough, 2010).
Business models perspectives •Value proposition. •The value proposition in the cases of business. What would make a customer choose a product over the other? Unique feature and value of a product over another. The customer will go for products that solve the problem they are facing (Ardito, Carrillo‐Hermosilla, del-Río & Pontrandolfo, 2018). The business model canvas stresses this by making it the point of intersection between the product made, and the reason behind the customer’s reason to buy it. It’s the essential feature for the most start-up entrepreneurs since they fail to evaluate it thoroughly. Failure to the business model for value proposition may lead the business astray. Some of the features that can be considered for value proposition include,
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
References •Ardito, L., Carrillo‐Hermosilla, J., del Río, P., & Pontrandolfo, P. (2018). Corporate Social Responsibility and Environmental Management Invites Contributions for a Special Issue on ‘Sustainable Innovation: Processes, Strategies, and Outcomes’.Corporate Social Responsibility and Environmental Management,25(1), 106-109. •Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. •Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.Journal of Cleaner Production,45, 9-19. •Caneque, F. C., & Hart, S. L. (Eds.). (2017).Base of the Pyramid 3.0: Sustainable development through innovation and entrepreneurship. Routledge. •Charles Jr, O. H., Schmidheiny, S., & Watts, P. (2017).Walking the talk: The business case for sustainable development. Routledge. •Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2–3), 354-363. •de Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation. McKinsey Quarterly. •Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., ... & van Hoof, B. (2016). Embracing the variety of sustainable business models: social entrepreneurship, corporate intrapreneurship,