Understanding Business Models and Strategy
Added on 2020-03-07
9 Pages2496 Words202 Views
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Business Model
ContentsBusiness Model......................................................................................................................................11.Introduction...................................................................................................................................32.Concept of Business Model...........................................................................................................33.Discussion of the various notions..................................................................................................43.1E-business Archetype.............................................................................................................43.2Business Model as a Activity System......................................................................................43.3Cost-Revenue Architecture....................................................................................................54.Utilisation of Business Model Conceptualisations in Analysing and Solving Problems..................65.Business Context and Change in the Business is Inevitable...........................................................66.Conclusion.....................................................................................................................................7Bibliography...........................................................................................................................................8
1.IntroductionThis essay will be discussing the understanding pertaining to the concept of business modelalong with the ways in which theoretical understanding pertaining to the business models canbe utilised for the explanation of innovation process, value appropriation and value creationsin organisations in real life. The academic literature with respect to the business model willbe explored for the investigation of three major concepts of business models – “e-businessmodel archetypes”, “business models as activity systems” and “business model as a cost /revenue architecture”. The investigation of such concepts will be performed both individuallyand also with regards to one another under the umbrella theme which is associated with thebusiness models. 2.Concept of Business ModelA business model is the articulation of logic. Data along with other evidence is provided by itwhich depict the ways in which the business leads to the creation as well as delivery of valueto its customers. An outline regarding the architecture of costs, revenues and profits linked tothe enterprise carrying out business provides that value is provided by the business model.The issues which are associated with a “good business model design” share aninterrelationship with each other and lie at the core of building a sustainable competitiveadvantage. Thus, a business model is a description of the manner in which value is createdand delivered to the customers by the enterprise and how payments that are received areconverted to profits. If the business pioneers wish to derive profits from innovation, it isessential that they excel in business model design and product innovation and also understandoptions related to business design, technological trajectories and customer needs. It providesdefinition of the business logic that is needed for earning profits and after adoption itdescribes the manner in which the firm “goes to market”. For assuring competitiveadvantage, the business model should be efficient and effective [ CITATION Tee10 \l 16393 ]. Even though business models are an integral part of trading and also of economic behaviour,the concept of business model gained prevalence with internet advent in the mid-1990s andhas picked up ever since [ CITATION Tee10 \l 16393 ]. Certain authors are also of the view thatthe emergence of this concept and its use extensively might have been driven by internet’sextent [ CITATION Ami01 \l 16393 ]. The other driving factors might be rapid growth in themarkets that are emerging, interest in issues pertaining to “bottom of pyramid” and expanding
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