Objective
- Describe a business model.
- Explain business model innovation.
- Discuss the importance of having a clearly articulated business model.
- Discuss the concept of the value chain.
- Identify a business model’s two potential fatal flaws.
- Identify a business model’s four major components.
- Explain the meaning of the term business concept blind spot.
- Define the term core competency and describe its importance.
- Explain the concept of supply chain management.
- Explain the concept of fulfillment and support.
- Model
- A model is a plan or diagram that’s used to make or describe something.
- Business Model
- A firm’s business model is its plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates.
- The term “business model” is used to include all the activities that define how a firm competes in the marketplace.
Components of a Business Model
Strategic Resources
- A firm is not able to implement a strategy without resources, so the resources a firm has affects its business model substantially.
- For a new venture, its strategic resources may initially be limited to the competencies of its founders, the opportunity they have identified, and the unique way they plan to serve their market.
- The two most important strategic resources are:
- A firm’s core competencies.
- Strategic assets.
