Business Models and Sustainability
Added on 2020-03-01
10 Pages2100 Words36 Views
|
|
|
Importance of business model 1Innovation and sustainable business Importance of business model in the business, e-archetypes, business model as activity system and business model as cost revenue system.
Importance of business model 2A business model has the nature of logistic which is able to provide data along with evidence that describes how a business would be able to generate and deliver values to the customers. It also form of costs, revenue and profits associated with the business so that value of customers can be delivered. There is a different element of business model to create value for customers and divert payment into profits (Richter, 2013). In core, a business model of the business comprises nothing less in comparison of architecture of organizational and financial of a business. business model cannot be compared with spread sheet or computer model, although business model may well lodged in the plan of business and the statements of the income and cash flow projections. But in a clearly manner, the concept of it refers in the phenomenon to a conceptual, in comparison of financial. Figure 1: elements of business model design
Importance of business model 3Source: (Teece, 2010).Business model is important for every sector; there is no need to determine certain sector for applying it. A good business model is able to gain value proposition that are captivating to customers and able to obtain the structure of advantageous cost and risks. It is able to generate significant value capture through the business that make and delivers products and services. It is required to design the business in an appropriate manner after those implementing e-commercially viable architectures for revenues to the success for an organization. It is most important if business is created at first but along with that it is important for this business to keepthe model viable (Cantù, 2013). It is required for business to focus on effectiveness of excellent people because they would be able to generate the sustainability and profitability. It has been argued by Teece, (2010), the concept of business model is value creation, value appropriation and innovation. Value creation is most important element of the business model. Value creation consider as major aspect in the business to attain the profit from end user For example, Amazon is a multinational company that is able to provide better services and products to their customers, it sets 14 principles within an organization and whosoever would be unable to follow these principles will be get punished by monetary or non-monetary terms. Theseunnecessary principles are being the reason of lack of creation that is why Germany is the country that does not prefer a single product from Amazon. Value appropriation is considers in the business in the order to gain profit or margin of the company. Two model strategies, leading strategy and rear guard strategies are being used to describe the value appropriation in the business. Innovation is the part of success of the company; business model innovation is a uniqueconcept which supports business in the term of financial viability. It has been analyzed that there are number of successful business model in all over the world, for instance, Wal-Mart, Apple,
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents