A Report on the Impact of Business Models on Company Strategy

This report examines the critical relationship between a business model and company strategy. It begins by defining business strategy as the methods used by a company to achieve its goals, and the business model as the way a company creates, delivers, and captures value. The report emphasizes that the business model is a core component of a company's overall strategy, dictating how the company achieves its objectives and generates profit. It highlights that business models can evolve as part of the overall business strategy. An example is given where a website, unable to profit from online advertisements, introduces a new business model, such as selling products through online stores. The report concludes by stressing the vital role of the business model in achieving a company's strategic objectives, providing a roadmap for success. The report references key sources such as Bocken et al. (2016), Laudon & Traver (2016), and Saebi & Foss (2015) to support its findings.

UNDERSTANDING HOW BUSINESS
MODEL IMPACTS COMPANY
STRATEGY
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Author Note

Business Strategy – An Overview
Business strategy refers to the techniques
and methods that are utilized by an
enterprise to achieve its goals and objectives
(Bocken et al., 2016)
The mission of a business encompasses the
overall purpose of the business, its long term
goals and core values (Laudon & Traver,
2016).
The strategy that is used by a business also
outlines how the business with deal with the
threats and the opportunities that it is faced
with.

Business Model – An Overview
The business model of a company entails a
basic description of the ways and means by
which the business creates and delivers value
to clients, and how it engages in revenue
collection in order to generate profit (Saebi &
Foss, 2015).
Business models tend to vary from one
particular company to the other
(Saebi & Foss, 2015).

Co-Relation between Business Model and
Business Strategy
The business model forms a crucial component of the overall
strategy of the business (Bocken et al., 2016)
The business model is the essence of business strategy and
defines the manner by which the goals of the company are to
be achieved, while generating profit at the same given time
(Laudon & Traver., 2016)
The business model of a company is one that can be change
over a period of time as part of the overall business strategy
of the company (Laudon & Traver, 2016).
Example – when a website is unable to make profit from online
advertisements, it can introduce a new business model like
the selling of garments via online stores as a novel strategy
for boosting profit generation (Laudon & Traver, 2016).

Conclusion
Thus, business model forms a vital part of
business strategy
The business model constitutes the map or
plan of action that needs to be implemented
to achieve the strategic goals and objectives
of a business enterprise

REFERENCES
Bocken, N. M., De Pauw, I., Bakker, C., & van der
Grinten, B. (2016). Product design and business model
strategies for a circular economy. Journal of Industrial
and Production Engineering, 33(5), 308-320
Laudon, K. C., & Traver, C. G. (2016). E-commerce:
business, technology, society.
Saebi, T., & Foss, N. J. (2015). Business models for
open innovation: Matching heterogeneous open
innovation strategies with business model
dimensions. European Management Journal, 33(3), 201-
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