Info Chaper1

Understanding Business Models

Business Model is a business model defines how organization interacts with its environment to define a unique strategy, attract the resources and build the capabilities required to execute the strategy, and create value for all stakeholders. A business model forms the foundation for how executive make decisions about opportunities to pursue, business to launch or buy, activities to preform, talent to hire, and ways to organize to deliver value to stockholders.

Analyzing Strategy;

Strategy is a series of choices that determine the opportunities you purse and market potential of those opportunities. It involves choices concerning products to sell, markets to enter, and ways a company differentiates its offerings from other alternatives. From business model perspective, decisions concerning a company’s strategy define the revenue drives of the business and its potential for growth over time.

Strategic positioning has four key dimensions:

1- Market positioning, determines the choice of customers to serve, the need and expectations that will be met, and the channels that will be used to reach those customers.

2- Product positioning, determines the choice of products and services to offer, the features of those offerings, and the price that will be charged.

3- Business network positioning, determines the role an organization plays and the activities it performs within an extended network of suppliers, producers, distributors, and partners.

4- Boundary positioning, determine markets, products, and businesses that will not be pursued.

Business model strategy audit includes:

A) Assess business context: ( What business are we in )

1- Examining industry and competitive dynamics and consider relevant demographic, economic, political, regulatory, and societal factors that influence the business.

2- Identifying key trends that will either positively or negatively impact the industry and any disruptors, such as...