MGMT20132: Business Model Disruption Analysis - Smart Products & Volvo

This essay defines the business model and discusses how smart products can disrupt established companies, focusing on the Volvo Group. It explores the opportunities and threats presented by smart, connected products, particularly in relation to Volvo's business model. The analysis incorporates the value proposition perspective, highlighting how unique features and customer-centric solutions drive product selection. The essay references various academic sources to support its arguments, emphasizing the importance of adapting business models to leverage the benefits of smart products while mitigating potential risks. Desklib provides this essay as a study resource, offering access to similar solved assignments and past papers.

BUSINESS MODEL AND
DISRUPTION
Name
Institution

Definition
• The business model is a unique culture an organization, entrepreneur,
and companies make unique to their style of business to increase
profits of the company. The business model developed is aimed to
ensure sustainability, competing fairly in the market. The business
model targets consumers, the best solution to beat the competitors,
was to drive the customers to get the products, i.e., advertisement
(Bocken, Short, Rana & Evans, 2014). There are different types of
business models. Business models are unique to each of the
organizations. Some of the commonly used business models are; direct
sales, franchise model, freemium model and subscription model.

Smart products and the Volvo Company
• Smart products can act as disruptions to companies in conducting their
business. The products affect business models of such models of great
companies that include Volvo group companies based in Sweden that
manufactures service trucks and construction equipment (França,
Broman, Robèrt, Basile & Trygg, 2017). The disruption of smart
products might influence opportunities in the market or threaten them.
• Smart connected products have many, of these physical components
that influence the decision of the company through soft wares updates,
and made through to allow cars to continually improved and optimized
with the visits to the leader (Chesbrough, 2010).

Business models perspectives
• Value proposition.
• The value proposition in the cases of business. What would make a customer
choose a product over the other? Unique feature and value of a product over
another. The customer will go for products that solve the problem they are
facing (Ardito, Carrillo‐Hermosilla, del-Río & Pontrandolfo, 2018). The
business model canvas stresses this by making it the point of intersection
between the product made, and the reason behind the customer’s reason to
buy it. It’s the essential feature for the most start-up entrepreneurs since
they fail to evaluate it thoroughly. Failure to the business model for value
proposition may lead the business astray. Some of the features that can be
considered for value proposition include,

References
• Ardito, L., Carrillo‐Hermosilla, J., del Río, P., & Pontrandolfo, P. (2018). Corporate Social Responsibility and Environmental
Management Invites Contributions for a Special Issue on ‘Sustainable Innovation: Processes, Strategies, and
Outcomes’. Corporate Social Responsibility and Environmental Management, 25(1), 106-109.
• Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business
model archetypes. Journal of cleaner production, 65, 42-56.
• Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a
research agenda. Journal of Cleaner Production, 45, 9-19.
• Caneque, F. C., & Hart, S. L. (Eds.). (2017). Base of the Pyramid 3.0: Sustainable development through innovation and
entrepreneurship. Routledge.
• Charles Jr, O. H., Schmidheiny, S., & Watts, P. (2017). Walking the talk: The business case for sustainable development.
Routledge.
• Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2–3), 354-363.
• de Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation. McKinsey Quarterly.
• Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., ... & van Hoof, B. (2016). Embracing
the variety of sustainable business models: social entrepreneurship, corporate intrapreneurship,