Business Model Analysis Report

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Added on  2020/02/24

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This report critically analyzes the importance of innovative business models in enhancing revenue and sustainability for organizations. It discusses the role of big data, cost structures, and revenue streams in shaping effective business strategies. The report emphasizes the need for continuous evolution of business models to adapt to changing market trends and consumer needs, highlighting examples from successful companies like Woolworths.
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After critical analysis of the secondary data on the web, I have found out that all
successful companies in the market use innovative and effective business model to improve
their revenue and profit in the market. The market trends and technology is changing at a
rapid and the organization will have to keep using innovation so that they can maintain their
sustainability and competitive advantage. The use of innovation in the business model has
been adopted by most of the major multinational companies all over the world so that they
cope up with the changes in the business environment. The use of big data is one of the major
changes that have been accommodated by the companies.
The business model can be defined as the clear and summarized way of portraying the
operations of a business. The business model should be as such that it could be described in
limited number of words. The objective of all the companies is to provide value to their
customers and the strength of the value proposition will determine the market acquisition of
the organization. . The company with good innovative business model will be able to increase
the life expectancy. The business model will determine the feasibility of the business and
help in identifying the contingencies in the business. The business model of an organization
will have to be evolved on a continuous basis as it helps in the creation of new sources of
generation of revenue.
Archetype can be defined as the fundamental personalities and roles that are derived
to create unique personalities. The archetypes can be divided into primary archetype and
secondary archetype where product archetype, service archetype and trade archetype are
included in the primary archetype. The secondary archetype consists of brokerage archetype,
marketplace archetype, subscription archetype and ecosystem archetype. The Trade
archetypes consist of the Ecommerce business where the model connects the potential buyers
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with the various products they are searching. This means they act as a mediator between the
buyers and the sellers and derive the profit from the arbitrage. These archetypes make profit
from the spread between the cost of acquisition and the selling price. The main key to this
business is sourcing and capital requirement for organizations following this business model
will be moderate.
The engagement of the physical, human and the capital resources so that the
organization can accomplish a specific purpose can be defined as activity. The business
model consists of all the key activities in an organization and they are all interlinked. The
various activities within an organization are designed in such a way that one activity is
dependent on the other activities. There are lot of activities, which are performed at an
internal level, and there are few activities that are performed by the external parties. . The
business model for each industry will be different and there has to be uniqueness among the
business models in various organizations. The business model will have to be developed
according the needs and the activities of the organization.
The final aspect of a business model is the analysis of the cost structure and the
revenue streams of the organization. Cost structure includes the important costs that are
associated with the product and the service. Revenue streams will identify the sources of
revenue generation for the company and the suitable methods that can be used. It will also
determine the value the consumers are willing to pay for the product. When the cost of
acquisition is more than the lifetime value of the consumers, then the project and the product
are not feasible and consumer market is not ready for the product. The two costs that are
associated within an organization are the fixed and the variable cost. The fixed cost remains
the same whereas the variable cost of an organization will decrease with the passage of time.
The companies that are able to maintain their sustainability in the market will be able to
maintain a balance with their cost and revenue generation.
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Business context is the special terms that are used in the industry, which can be
identified and understood by everyone in the market. Globalization has made rapid changes
in the execution of the businesses in all over the world. The use of technology and innovation
has become a necessity where all the companies will have to make use of innovative ideas to
constantly evolve and change the business model. The companies are using continuous
integration, which helps them to keep improving their business model so that they can
increase their competitive advantage in the market.
Big data has gained its popularity in the last where a lot of major companies used to
analyze the needs of the consumers and the recent market trends. The use of information to
understand and identify the market trends has revolutionaries the market. There is large
amount of data that is available in the market and the companies are using it to interpret a lot
of factors. Woolworths is an example of companies who are one of the first to use big data to
identify the popular products among the consumers. This has helped them to retain a majority
of their consumers by providing them with offers in these popular products available in the
market.
The technology is advancing and the inventions of new technologies are making the
old technologies redundant. Thus, the companies have to be up to date if they want to hold on
their competitive advantage and this is the very reason that the competition in the market has
become more intense than before. Technology has changed the market needs of the
consumers and it keeps on changing in a brisk way so the companies constantly monitor their
business model so that they can incorporate those changes to make improvements in their
business models.
Thus, the conclusions that can be drawn from the above report that business model is
the integral part of an organization. The development of a good business model will ensure
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sustainability of an organization and that is why the companies are continuously integrating
the processes so that they can make improvements in the business model.
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