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Study on The Business Model

   

Added on  2020-02-24

10 Pages6102 Words98 Views
Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTInnovation and Sustainable Business DevelopmentName of the Student:Name of the University:Author’s Note:

1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTIntroductionBusiness model can be defined as the blueprint for business operation, whichincorporates set of interrelated activities for gaining competitive advantage in the market(Bohnsack et al., 2014). The study will explain the business model as per the book “TheBusiness Model: Recent Developments and Future Research” written byZott, Amit and Massa.Moreover, the study will describe three business notions in this book like e-business archetype,business model as activity system and cost/revenue architecture. The study will also discuss theinevitability of change in business with an example of Coca Cola Amatil. DiscussionBusiness model is the combination of structure, content and governance of transaction,which are designed for creating organizational value through effective exploitation of businessopportunities. According to Zott and Amit, (2013), business model is actually the system ofinterdependent activities, which transcend an organization and its boundaries. It is the waythrough which an organization can generate revenue and make profit through effective businessoperation. On the other hand, DaSilva and Trkman, (2014) opined that business model is theheuristic logic, which connects the technical potential of a firm with its economic value. Business model also defines the plan for a success business, which identifies the sourcesof business revenue, products and services, intended customers and detailed financialrequirements. Furthermore, Markides, (2013) opined that business model is the conciserepresentation of interrelated set of business decision variables in the areas of business strategies,architecture and economies for gaining competitive advantage in the market. The model isconsisted of four interlocking elements like customer value proposition, key resources, key

2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTprocesses and profit formula.Furthermore, business model is intended to capture and create valuethrough utilization of value oriented activities, advanced technology and cost and revenuestructure. While considering the book The Business Model: Recent Developments and FutureResearch” written byZott, Amit and Massa, it has been seen that there are three types ofbusiness notions, which are extremely important for enhancing business value. The three distinctbusiness notions are e-business model archetypes, business model as activity system andbusiness model as cost/revenue structure. Recent development in communication and information technology has increased thebusiness value in the market. Schneider and Spieth, (2013) pointed out that swift expansion andemergence of technology has rapidly declined the computational and communication cost of thebusinesses. The creation of transactional architecture and unconventional exchange ofmechanism has developed new ways of delivering high business value to the customers.According to Zott et al., (2011)e-business model archetype ensures profitable businesses for theorganizations through dealing with the business partners and the customers over the internet. Theblessings of e-business model architecture have enhanced the advertisement effectiveness andproduct delivery system. Furthermore, Amit and Zott, (2015) opined that e-shop, e-communication and e-commerce has allowed the business organizations in direct interaction withthe customers. Moreover, such electronic mediums facilitates in direct product delivery to thecustomers and receiving direct feedback from the customers. In this way, it has ultimatelyenhanced the values of the business through direct interaction with business customers.Moreover, such digital contents have also enhanced the business potentiality towards reachingwide customer groups through proper strategic marketing.

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