Business Model

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Business Model

  1. 1. Business Model
  2. 2. Business Model “ Great businesses turn on a little pin."   By unknown
  3. 3. Business Model Business Model Business model converts innovation to economic value for the business. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. It draws on a multitude on business subjects including entrepreneurship, strategy, economics, finance, operations , and marketing . Simply put, a business model describes how a business positions itself within the value chain of its industry and how it intends to sustain itself, that is to generate revenue.  
  4. 4. Competitive Strategy Revenue Generation Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  5. 5. innovation Innovation is a process of taking new ideas through to satisfied customers. It is the conversion of new knowledge into new products and services. Innovation is about creating value and increasing efficiency, and therefore growing your business. It is a spark that keeps organizations and people moving ever onward and upward. "Without innovation” new products, new services, and new ways of doing business would never emerge, and most organizations would be forever stuck doing the same old things the same old way. Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  6. 6. Value Proposition Value proposition is a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective. First priority is Client to satisfy their needs by listening and by providing best services at all levels. Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  7. 7. Market Segmentation Divide and conquer! Successful marketers qualify their current and prospective customers. By doing so, they can better target their value propositions to different customer groups, which results in higher sales. Market = Sales + Quality + After Sales service Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  8. 8. Value Chain Value chain is a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. Raw material + Process = Finished goods Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  9. 9. Revenue Generation Revenue lays-out the process by which a company actually makes money by specifying how it is going to charge for the services provided. Cash inflow – Cash outflow = Profitability Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  10. 10. Competitive Strategy To be successful today, your company must become competitor-oriented. You must pursue the right competitive strategy. Avoid strengths of your competitors and look for week points in their positions and then launch marketing attacks against those weak points. Open eye + do something = Achieve the desired results Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  11. 11. Growth Risk Your capabilities in maintaining perspective (reality vs. euphoria), balancing today's and tomorrow's needs, and coordinating resources are being tested The original route to success works for some time, but then it stops working so well and hits diminishing returns. It is nor easy to keep a great new venture to grow at its original rate for more than 3 to 5 years. If you continue doing the same things that made you successful during the start-up stage you are almost certain to fail. Competitive Strategy Revenue Process Value Chain Market Segmentation Value Proposition Innovation Growth Risk Business Model
  12. 12. Business Model Successful organizations must balance bureaucratic processes at one extreme with the fluid chaos of relationships, interests and transactions, which enable it to be innovative and alive, at the other. "   – Robin Wood “ Thank you"   [email_address]

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