Business Models And How They Manage Business Strategy,...

Business Models And How They Manage Business Strategy,...
This article details different business models and how they relate to business strategy, innovation
management, and economic theory. When organizations begin, they often try to use an example and
model their strategy off of a successful business. In Teece's (2010) description of implementing a
business model, he notes the difficulty of replicating systems of other well–known organizations.
Teece (2010) uses Netflix as an example. Similar to the way Netflix was the first organization to
deliver DVDs by mail, Blockbuster video attempted to do the same. However, as Teece (2010)
explains, Netflix was able to compete with Blockbuster because they used a system through which
subscribers could note their online movie preferences. This system was patented so that others could
not use it (Teece, 2010). Because Netflix had a strong new business strategy, Blockbuster tried to
use that as a model to stay competitive. Teece (2010) indicates that what made Netflix competitive
was the fact that it started first, allowing it to continually improve its business model. This article
suggests that Blockbuster may not have been as successful because they were always one step
behind; they had to wait for Netflix to take the next step in their business strategy before they could
move forward. This article provides background and support for how Netflix was a pioneer in the
DVD and eventually Internet streaming industry. In the article "The Network Neutrality and the
Netflix Dispute" written by
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Case Study : The Solution Business Model Essay
The Solution Business The solution business is yet another traditional time tested business model.
Like the freelance model it can be combined with the specialization business, debt business, or the
first to market business. In many ways the solution business model can be compared to the
freelancer model. Some might even say it is the same. Yet I would counter this statement by
explaining how this model is based on intentionally creating a scalable model, if the freelancer does
not show up, no revenue is made. So, technically freelancing could even be considered a less mature
solution model. Some may even say that all business models are solution models, but that is not
universal. Undoubtedly, the solution business is popular for both goods and services, and like the
first to market business, this model can often be sold to larger firms who are behind the curve on
certain innovations or need the clever solution. However, the solution model poses far less risk and
has a far greater chance of becoming quickly profitable than the first to market model does. A savvy
operator will attempt to systemize their proprietary knowledge to create a scalable product. In fact,
once this is done, it is often better for the specialist to stay away from daily operations. Like the
freelance model, the solution model is a good fit for anyone and you will certainly have a plethora
of solution based ideas on your idea list. Unlike the freelance model, which completely relies on the

Business Model : An Organization
Business Model
student
4/2/2015
A business model explains the basis of how an association creates, distributes, as well as captures
financial, communal, along with other shapes of importances. And also a business model is too
implicit as a holistic way towards illumination how firms accomplish commerce .The business
model theory is becoming more and more popular inside IS, supervision and plan literature. It is
applied within a lot of fields of investigate, including equally traditional plan theory as well as in the
developing organization of theory on e–business.
On the other hand, the idea is often used separately from hypothesis; meaning model constituents as
well as their interrelations are comparatively obscure. However, ... Show more content on
Helpwriting.net ...
The spotlight on business models permits for an improved understanding on how ecological
importance is incarcerated, turned into gainful products as well as services, along with distributes
expediency and contentment to users. In actual terms, the psychoanalysis of environmental
innovation cases can hut illumination on whether, and also to what level and how ecological
importance's are reproduced in firm's value plans, purchaser segmentation, make use of many type
of resources, relationship patterns as well as the supervision of cost and proceeds streams. Through
replacing old industry practices, original business models too permit firms to redistribute their
importance chain as well as produce new kinds of producer–purchaser relationships, as well as
change the consumption society along with use follows. The business model viewpoint is therefore
mainly relevant to essential and universal eco–innovation, counting how business models as well as
plan can bring and assist diffuse essential eco–innovation as well as allow systemic alters and
alteration. Additionally, it is significant to understand improved how rule can influence as well as
make easy the

The Business Model ( Bm ) Essay
RQ1. The business model (BM) delineates the logic of how an organization creates, acquires, and
delivers value and facilitates the organization's strategy implementation through the organizational
structures, processes, and systems (Osterwalder & Pigneur, 2010). The BM seeks to establish and
maintain a relationship with a targeted demographic through the provision of benefits that solve a
problem or meets a need. This value proposition is available through key resources, activities, and
partnerships in respect to the cost structure and is delivered to the customer through channels; the
value proposition returns to the organization in the form of revenue stream. The BM is an
aggregation of components that align to support the organization's philosophy of how it plans to
prosper. Customer segments identify the customer that the organization desires to reach and serve.
Customer relationships are defined by the type of relationship the organization establishes with the
customer segment. Value propositions specify the benefits (products and services) that an
organization can provide a customer to meet a need or solve a problem. Key resources are the assets
that enable the organization to offer value, reach the market, maintain relationships, and earn
revenue. Key activities detail the actions the organization must perform to operate successfully. Key
partnerships are business alliances that optimize the strategy and provide resources. Cost structure
defines the expenses acquired

Disruptive Business Model: Case Analysis: Disruptive...
Case Analysis
Disruptive Business Models
Over time, companies desire to improve their products in the market which may involve changing
the quality of their products and consequently increasing the costs. While customers would want the
improved products, they often are unprepared meaning that they may shy away from purchasing
such products. In this case, emerging companies tend to take advantage of such a market and
introduce concepts that would be appealing to the customers and hence overpower the existing
companies (Magretta,2012). Markides (2006) explains that disruptive business models are the
decisions that a company makes that enables them to outshine or be above competitors in an
individual market. The disruptive model focuses on disrupting the existing market and making the
customers prefer the new company as opposes to the others (Magretta,2012). In this case, change of
infrastructure can affect the way business is done. For example, transport companies can choose to
implement a train station in a very congested road network to gain a competitive edge and also
ensure that customers travel with ease.
According to Jham ... Show more content on Helpwriting.net ...
For instance, Wal–Mart is a good example of a company that has used a disruptive business model
(Hess, 2012). Wal–Mart came into the market and introduced cheaper products while opening
thousands of stores across the globe. Their concept of buying less at a lesser fee seemed to have
attracted a lot of customers and this translated to the right revenues for the company within the first
year of operation. Wal–Mart is arguably the biggest store globally and the largest employer with an
employment capacity of over two million people globally. A disruptive model ensures that a
company leaves an old way of shaping their products and learns new methods of

Rothaermel's Business Model
What is a Business Model? The word model is defined as "a standard or example for imitation or
comparison" (Dictionary.com, 2017). Correspondingly, a business model is a standard or example
for a business to follow in order to execute their strategic plan. It provides the directions for the
delivery of a product or service that fills a consumer need and creates value. As learned in
Rothaermel (2017) a business organization's structure must follow its strategy to be successful. A
business model describes the format a company will use for its structure, the systems it has in place,
as well as the processes it will use, to implement its strategy (Osterwalder & Pigneur, 2010). One
essential component in the business model is information pertaining to whom the business considers
its customers, what their needs are, and how the company will create value for them. This ... Show
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Similarly, but more simply put, Rothaermel (2017) describes a business model as a strategy
translation as to how the firm plans to make money. What is evident in looking at these as well as
other definitions are that there does not seem to be one accepted definition with which business
literature can agree. Saebi, Lien, and Foss (2016), in surveying business literature found twelve
varying definitions for the term business model, of which there were 42 different components. Also
of concern to these authors is that business models appear to be the hypothesis of a company's
management as to what their customers' need and how it should be fulfilled in order to make money.
Further espoused is that just as any hypothesis need adaptability to change agents, such as the
external environment, business models need to have this same adaptability, and should be updated
more frequently than they usually

Creating A Successful Business Model
Introduction
Creating a successful business model requires a wide variety of detail. Numerous businesses decide
simply to enter a market with standard practices and standard products that are related to a particular
product or service, however, countless others attempt to innovate by creating new services or
business models. Innovation is done through small–medium enterprises (SME) or through
innovation–driven enterprises (IDE). The following paper will examine two broad firms and their
various details regarding benefits and risks. Innovation will be addressed in developing countries, in
addition, how firms can create a culture of innovation to support this business model. The concern
regarding government involvement will be explored, and ... Show more content on Helpwriting.net
...
Given that IDE's are creating new and un–tested concepts into the market, the possibility of failure
is significant. However, this same risk can provide a greater payoff for IDE entrepreneurs if they
manage to be successful (Aulet, 2013).
Creating a Culture of Innovation
According to Aulet
There are a number of ways companies can create a culture of innovation. One way companies can
create a culture of innovation is by creating an infrastructure to allow people to experiment without
it hurting the business; innovation comes from experimentation and risk and when risk can be
controlled more experimentation can be done (Aulet, 2013). By creating an environment that not
only allows innovation, but rewards it, a continuing cycle can be created to invite growth.
According to Peters
One way is to create a culture of innovation is by creating an environment that focuses on the
development of people (Heywood, De Smet & Webb 2014). By focusing on the development of
individuals and by creating environments that are supportive, open, and energetic, it encourages new
ideas and positive outlooks.
According to Execution Plan Video
Rewarding those who develop innovation is helping to encouraging it (Films on Demand, 2008).
Developing new ideas, but also exploring existing ones is another method of development for a
culture of innovation as well as it supports the current business

Business Model Canvas Zillow
E–BUSINESS ANALYSIS OF REAL ESTATE COMPANIES Delvin Grant, DePaul University,
USA Email: dgrant2@depaul.edu Emna Cherif, DePaul University, USA Email:
emcherif@gmail.com ABSTRACT We analyzed the e–business websites of Realestate.yahoo.com,
Realtor.com, and Zillow.com. We looked at the similarities and differences between them and how
e–business components help differentiate one company from another and the role this plays in
contributing to their success. We looked at which business model components, such as value
proposition, target customers, distribution channels, and revenue streams, are important. The type of
e–business models each company used and the ones that are more successful were investigated. We
discovered some similarities ... Show more content on Helpwriting.net ...
Dubosson–Torbay et al. (2002) identify the principal dimensions––user's role, interaction pattern,
nature of the offering, pricing system, level of customization, and economic control––for classifying
e–business models. Rappa (2001) describes companies by their value proposition and ways of
generating revenue. His classification has nine categories of e–business models: brokerage model,
advertising model, infomediary model, merchant model, manufacturer model, affiliate model,
community model, subscription model and utility model. E–business models are comprised of a set
of components so we need to choose the appropriate application framework to define the
relationship between them. The growth of e–business has raised interest in transforming traditional
business models to exploit opportunities through innovation (Pateli and Giaglis, 2003). The internet
has changed the idea of a business model and this has practical implications for companies.
Consequently, companies need to redefine customer value propositions, and their business model.
Enhancing customer experience helps to reshape customer value propositions (Berman and Bell,
2011). Creating new digital capabilities helps to refine the operating model by leveraging
information to manage organizations, and integrating and optimizing digital and physical
components (Berman and Bell, 2011). Effective use of e–business models depends on the economic
environment, market and industry conditions, and the internal and external

An Investigation of Dell and Hewlett Packard’s Business...
An investigation of Dell and Hewlett Packard's business models: How is competitive advantage
created?
Introduction:
Dell and Hewlett Packard (HP) are two of the most influential companies in the PC market. The
CEO of HP requires an understanding of how dells strategy allows it to achieve a competitive
advantage so that he/she can counteract it. This report has been carried out to provide the CEO with
the necessary information to do this. Therefore the objective of the report is to provide the CEO
with detailed information on Dell as a business and its strategy. In order to achieve this, first the
main strategies of Dell and how they provide competitive advantage will be identified, then the
business models and e–business initiatives used ... Show more content on Helpwriting.net ...
Hp's business model is a traditional business model whereas Dells business model is direct.
The advantages of Dells model are: The internet allows Dell an extensive scope and reach for its
products at a relatively low price (Dedrick and Kraemer 2001). Using the internet Dell has been able
to automate many of its business functions, such as product configuration, order entry and technical
support (Dedrick & Kraemer 2001), therefore the company can achieve higher revenues without
customer service costs increasing greatly. Online configuration ensures that the customer gets
exactly what they want. Dells build to order strategy means that inventory levels are low, they only
hold approximately 4–8 days of stock, therefore inventory costs are low (Breen 2004).
Some authors say that Dells business model is successful because they offer 'dependable support,
combined with competitive prices and build to order convenience' (Lee & Thornhill 2005). However
it is argued that Dells success is falling due to a lack of investment in customer service, recently
their reputation has been damaged as complaints increase (Gross 2005).
HPs business model is advantageous because their customers have more choice in purchasing
options, they can buy online, but if they need more assistance they can buy from a store where
advice will be provided. Although this is good for the customer, it has detrimental effects on HPs
traditional

Business Model Evaluation : Wal Mart 's Global Logistics...
REFERENCES
Aoyama, Y. (2007), "Oligopoly and the structural paradox of retail TNCs: an assessment of
Carrefour and Wal–Mart in Japan", Journal of Economic Geography, Vol. 7 No. 4, pp. 471–90.
Bonacich E, Wilson J, 2006, Global production and distribution: Wal–Mart's global logistics empire
(with special reference to the China/Southern California connection), In Wal–Mart World, Brunn SD
(ed), Routledge: New York; 227–242.
Brandenburger A, Stuart HW, 1996, Value–based business strategy, Journal of Economics &
Management Strategy 5(1): 5–24.
Brea–Solís, H., Casadesus–Masanell, R. and Grifell–Tatjé, E, 2014, Business Model Evaluation:
Quantifying Walmart 's Sources of Advantage. Strategic Entrepreneurship Journal, 9(1), pp.12–33
Casadesus–Masanell R, Ricart JE, 2010, From strategy to business model and onto tactics, Long
Range Planning 43(2): 195–215.
Casadesus–Masanell R, Zhu F, 2010, Strategies to fight ad–sponsored rivals, Management Science
56(9): 1484–1499.
Chan, A, (2011), Walmart in China, Ithaca: ILR Press.
Chuang, M., Donegan, J., Ganon, M. and Wei, K, 2011, Walmart and Carrefour experiences in
China: resolving the structural paradox, Cross Cultural Management, 18(4), pp.443–463.
Corporate.walmart.com, 2015, Our History. [online] Available at: http://corporate.walmart.com/our–
story/our–history [Accessed 21 Nov. 2015].
Deloitte, 2014, Global Powers of Retailing 2014, Retail Beyond Begins, Deloitte LLP.
Drucker P, 1954, The Practice of Management, Harper & Brothers:

Business Model Generation
Business Model Generation Exercise 2
Ken Davis
Liberty University
April 23, 2017
Introduction The foundational principle of a company is its business model. A business model
defines the aspects associated with the business, such as the focus, values, strategy, innovations and
both the traditional and non–traditions system accompanying the lean internal and external factors
that set the company apart from others. These are the suggested external factors of a business model,
which defines the roles of external factors of demand.
The Role of External Factors of Demand External factors are the environmental conception of the
design space, which is conceived or acclimate the business model, which considers the design
constraints ... Show more content on Helpwriting.net ...
The strategy is also an important external factor as the strategy of the business officiate both the
internal and external components of time. For instance, having the employee to submit the mail at
the exit of the business, saves money, as there is no need to hire a mail clerk. Also, outsource the
mailbox to a business client, who handles package delivery, thus gaining an affiliate business and
client. As simple as it is, it is more so innovative. These external factors build a company process of
improvement in value, time, and incorporates a strategy.
What is Business Model Design and Innovation? A business model design and innovation is the
value a company brings to the market. Osterwalder, & Pigneur (2010) mentions four mapping four
primary areas of environment, market forces, industry forces, key trends, and macroeconomics
forces (p. 200). Each one of these four factors are important to a business model. The innovation
that is required to make each mapping to become a success is much needed.
Marketing forces. Marketing forces make up a great deal of success in a business model design. In
fact, Arons, Van den Driest, & Weed (2014), says that what marketers do to engage the customer has
changed almost beyond recognition. For instance, in times past marketers would fan the mall
looking for participants. Today, marketers have contracts with certain industry affiliate companies to
submit questionnaires to them who are interested in winning prizes, money, or

Lincoln Electric Business Model And Employment System
Table of content Pg
Introduction...................................................................
Lincoln electric business model and employment system...
Usage of Lincoln 's business model in other industries........
Lincoln Electric success in foreign markets.......................
Competition Lincoln could face in the future......................
Conclusion.....................................................................
References ....................................................................
1.INTRODUCTION
Lincoln Electric is a company operating with the sales of electric motors which was designed by
John C. Lincoln himself, The company started off in 1895 when John C. Lincoln started the firm
with an extremely low capital of only 200$. A few years later in 1907, John's brother James decided
to join the company Electric motors as a senior manager after just graduating from Ohio State
Policies which has highly benefited the company as he introduced a series of policies under human
resource and management which were innovative and new. In 1907 the company started to grow and
decided to venture into new markets and diversify their production into Welding equipment as well,
this has attained the company major success and in the year 1922 (Lincoln Electric, 2015)
production of welding equipment and welding consumables has become the main business done by
Lincoln Electric.
After almost a century, In the year 1995, the company has managed to hit one billion US Dollars in
sales which was the company's hundred year anniversary.

The Ryanair Business Model
Background
"To most people, sky is the limit. To those who love aviation, sky is home". –Anon
The multitude percentage growth of Ryanair, an ultra low cost Irish airline established in 1985 &
operating to 185 destinations within the European Union depicts the above quote perfectly. In the
last 30 years of its operations, Ryanair has emerged as the largest low cost carrier across Europe and
Africa. The airline has been ranked as No 1 in coverage and customer service flying to more than
10mn customers annually & across 1600+ routes through its 73 bases. The following report covers
the journey of Ryanair an Irish low–cost airline headquartered in Swords, Dublin, Ireland. Ryanair is
a listed company in the Irish Stock Exchange (ISEQ), London Stock Exchange (LSE) and the
NASDAQ. ... Show more content on Helpwriting.net ...
A truly unique value proposition coupled with a sound business model has enabled Ryanair to be the
lowest priced airline amongst all LCCs. Ryanair's business model has continually evolved over the
last 30 years (Please refer Exhibit 1 SWOT analysis).
They started off absolutely focused on cost, then they focused on choice and then they improved the
service. As is displayed below, while Ryanair may have isolated pockets of cost disadvantage, such
as Route charges or Airport handling, however at an overall level, the cost advantage for Ryanair is
much more than its other LCC fraternity. Ryanair enjoys a whooping 76% cost advantage over its
nearest competitor EasyJet. This cost differential helps Ryanair to pass the value benefit to its end
customers. (Please refer Exhibit 2)
Ryanair's superior cost effectiveness is attributed to:
● Airport access and handling costs
● Aircraft equipment costs
● Personnel

Emerging Thought Leaders Across All B2b Business Models
3. Store–Within–a–Store Applications
Emerging thought leaders across all B2B business models understand how important it is to react to
market demand, satisfy busy customers who search for products on their mobile devices and take
advantage of segmentation to offer special catalog lists and pricing tiers to various sub–groups.
Store–within–a–store applications can benefit a range of B2B marketing strategies including
offering more compact catalogs to special segments, promoting branded merchandise separately
from in–house or generic brands, creating B2B stores within larger retail operations and satisfying
other special marketing and buying needs.
These sub–brands can be used to provide deeper product specs and descriptions, offer ... Show more
content on Helpwriting.net ...
B2B websites can deliver better compliance with vendor requirements while creating a better
shopping experience for buyers by creating a sub–brand store to market products under an exclusive
label with customized store designs and buying features.
4. Separate Client Stores for VIP Customers
Large eCommerce stores often depend on sales to VIP customers, and many of these buyers need
higher levels of support than regular customers. VIP customers might need more detailed product
research and vendor support services, special lists of preapproved products, custom pricing,
flexibility to customize products, products from only name–brand manufacturers or built–in
ordering limits constrained by individual store deliveries, budget caps, seasonal boundaries and
confidentiality or security–compliance issues.
These special product lists could challenge any B2B operation and its staff to comply with all these
special requirements. Back–office customizations can craft special instructions and catalogs or
stores–within–stores that only display approved products and limit orders based on customizable
guidelines. The companies can still order other products if approved, which often requires approvals
from multiple decision–makers. These store customizations can offer the following automatic
processes:
Providing information on new products to all decision–makers to expedite approvals
Limiting catalogs for easier ordering on mobile devices

Evaluation of the Business Model for Wal Mart.Com
Evaluation of the business model for Wal–Mart.com. Is it a successful model? Wall–Mart is using
the click and mortar business model, it is a multi–channel business model that leverages the best of
both online and offline operations. One of the advantages of this model is that it offers products and
services through multiple channels: through its brick and mortar stores and online store. In addition,
most of the products offered by Walmart.com have successful e–tailing characteristics. They are
relatively inexpensive items, frequently purchased items, commodities with standard specifications
and well know packaged items. The site offers superior service in the form of extensive information:
• Order tracking • Purchase history • ... Show more content on Helpwriting.net ...
Wal–Mart's fears of cannibalization are unsubstantiated as current online buying trends and patterns
indicate that many customers still prefer to use physical stores. Higher end customers that shop at
Futreshop.com still do majority of their shopping at the physical stores. Regarding the target
segment Walmart.com is trying to reach; recent research indicates that profitability is closely related
to local strategy. (Harvard Business Review, September 2005) Local environments still have
different tastes, business practices, cultural norms and other characteristics. Simply offering internet
connection to those customers may not be enough to create consistent online sales form them. Local
retailers may server these segments better and offer customized services due to their small customer
base. Therefore, Walmart.com is facing two obstacles: local retailers and customer buying habits.
Changing them may prove to be a difficult undertaking. SWOT analysis approach Strengths: 1.
Walmart.com has an alliance with the master of retail process: Wal–Mart. Having the best process
and infrastructure when it applies to supply chain is definitely a competitive advantage.
Walmart.com can take advantage of back end operations and inventory management processes
through its alliance with Wal–Mart. 2. Established knowledge about its customers their needs and
demands. Walmart.com realizes that median household income of an online consumer is higher than
that of its regular

Description Of The Business Model
Final Project– MBA620 1. Description of the Business Model Making the decision on whether to go
forward with a start–up verses purchasing a franchise can be a difficult one. Many factors have to be
considered in order make the best sound decision for that individual. Thankfully, many resources
have been established so that research can be found easier. "There are also many options as far as
entrepreneurial ventures are concerned. One of the most common decisions entrepreneurs face is
whether they should start up their own business or invest in a franchise. While both opportunities
involve various amounts and types of risk they also hold the potential for individual benefits as
well." (Get Busy Media) Below is research that shows the ... Show more content on Helpwriting.net
...
It ensures professional freedom with limitless potential. Low–entering costs o Owner can start small
if capital is limited (Sen, Pramita) (Markovic, Marija) Disadvantages Culture shock o Owner may
experience a culture shock from being gainfully employed by someone to owning their own
business o Profits may be delayed High Commitment/more responsibility o Time spend

Swot Analysis Of Business Model And Customer Centric Essay
SWOT Analysis – Overview Amazon.com, Inc. is an online retailer and web service provider. The
company provides an onslaught of products which include books, games, beauty and health
products, electronics, clothing, groceries and much, much more. Its lucrative business model and
customer–centric business model are considered its major strengths. Although there are risks
associated with competition and exchange rates, its expansion plans, acquisition and positive
outlook for e–Retailing will make significant strides in building and growing its future expansion.
Strengths – Operational Network The company has a strong operational network and this leverage
assists in helps it in supplying their large customer base efficiently. Amazon offers its customers a
one–stop shopping environment ranging from apparels to electronics, to even groceries. Providing
large arrays of merchandise and efficient customer service, the company emphasizes on selection,
price, and distribution. The company supplies to end customers through an elaborate network of
facilities management. This management includes space coordination, infrastructure, delivery,
warehouse operations, data centers, customer service, people, and the efficient management of its
overall organization. These services are not only provided in the United States, but also across
Europe and Asia. According to statistics reported in December 2014, the company's facilities
covered an area of 113.7

Advantages And Suppositions Of A Business Model
For Lewis (2001), a business model means "all it really meant was how you planned to make
money" (Lewis, 2001, p. 254). This definition reiterates in simple words the previous "theory of
business" by Peter Drucker (1994) who described the term business model as a set of suppositions
about what a business will and will not do to get paid for. These suppositions are about the market
and external environment, customers, competitors, technology and the company's strengths and
weaknesses (Drucker, 1994). These explanations are very close to the famous definition of strategy
by Michael Porter which is the formation of a unique and valuable position by linking different set
of the company's activities (Porter, 1996; Ovans, 2015). In online business, the business ... Show
more content on Helpwriting.net ...
(4) Utility model: in contrast to the subscription model, this model charge users based on metering
usage or pay on–demand services. Subscribers are allowed to purchase access to a content and pay
on actual use, for example pay for number of page viewed (Rappa, 2010; Chaffey, 2011). (5)
Manufacturer model: to create Website by a company to sell its products and services online directly
to the customers and compress the distribution channel. (6) Merchant model: it is a virtual retailers
of goods and services model and are presented in many forms (Rappa, 2010; Chaffey, 2011). It can
be virtual market such as Amazon and Souq.com where they sell products and distribute them by
using third party carriers (Beavers, 2017). Or it can be like Apple i–Tunes music store where the
sales and distribution of digital product managed by the website. (7) Infomediary model: websites
that provide unbiased information to support buyers and sellers to understand a given products or
services. Revenue in this model is based on advertising and/or by selling information about
customer behaviors and online market. (8) Brokerage model: is to create virtual market and get
sellers and buyers

Freemium Business Model
Freemium as a Business Model for Mobile Video SERGEJ KOTLIAR Master of Science Thesis
Stockholm, Sweden 2011 Freemium as a Business Model for Mobile Video SERGEJ KOTLIAR
Master's Thesis in Media Technology (30 ECTS credits) at the Media Management Master
Programme Royal Institute of Technology year 2011 Supervisor was Christopher Rosenqvist, SSE
Examiner was Johan Stenberg TRITA–CSC–E 2011:026 ISRN–KTH/CSC/E––11/026–SE ISSN–
1653–5715 Royal Institute of Technology School of Computer Science and Communication KTH
CSC SE–100 44 Stockholm, Sweden URL: www.kth.se/csc Freemium as a business model for
mobile video Abstract Facing a new media landscape, media companies are struggling to find ways
to generate revenue ... Show more content on Helpwriting.net ...
3 1. Introduction ....................................................................................................................... 4 1.1.
Background .............................................................................................................................. 4 1.1.1.
Trouble in the ad–
‐supported content industry ................................................................... 5 1.1.1.1.
TV industry faces potential competition ....................................................................................... 6
1.1.1.2. New business models are needed
.................................................................................................... 6 1.1.1.3. Possibilities for payments
on the mobile ...................................................................................... 7 1.1.2. Problem
................................................................................................................................................ 7 1.1.3.
Purpose ................................................................................................................................................ 8
1.1.4. Delimitations

Business Model For Costco
Costco is one of the top wholesale retailer brands in the USA. It has also a unique membership
business model. It serves its customers in the best way by providing them selected branded
products. Its members enjoy special savings offer. Its products and services are very nicely matched
to its customers. Its customer service department always ready to clarify and deliver the customized
services to every customer. It also provides customers a chance to give their valuable suggestions.
These suggestions are used to make necessary changes in their products for stocks as well as
improvement in customer's membership services.
Membership warehouse club is a strategy differentiates. One of Costco strengths is pricing, they
offer huge discounts on bulk

The Subscription Business Model Is A Marketing Model
The subscription business model is a business model where a customer must pay a subscription
price to have access to the product/service. The model was pioneered by magazines and newspapers,
but is now used by many businesses and websites. we 've got to provide an on–going, novel yet
practical service that adds value to customers ' lives by encouraging/changing habits. You need to
relate to your customers lifestyle and that can only be done successfully if you have a common
interest and passion. – we are often overwhelmed with the amount of choice when looking to make
a purchase of some kind. Subscription boxes solve this problem. The items in the box are usually
specially curated to suit your customers lifestyle, needs or preferences. They save time and stress by
not having to conduct research or even think. All they want to do is trust someone to make decisions
for them based on some of their requirements and continue receiving these products on a regular
basis. Subscription box businesses are like personal shoppers. They are convenient and fun too.
Market Summary: The Subscription market has seen rapid growth over the last few years. New
companies are building successful businesses selling all manner of products and subscriptions.
There is no single market encompassing all subscription commerce, because a lot of products are
targeted to different demographics. With the vast range of products that can potentially be delivered
by subscription, there is no obvious limit to

The Origin Of The Term `` Business Model
The origin of the term "business model" can be traced back to Peter Druckers classic 1954 book, the
practice of management where it has evolved due to the emergence of new technology and modern
consumer. What defines a business model? Business model has been referred to as an architecture
(Osterwalder 2004), a structural template (Amitt & Zott 2011), a method (Afuah & Tucci 2011) and
a pattern (Brousseau & Penard 2006). Saul Kaplan (2012, p.18) defines business model as a 'story
about how an organization creates, delivers and captures value'. Every viable organization is built on
a business model as a foundation. Although commonly used interchangeably, business model are not
business strategy. Business model is an internal system that is made up of components, linkage
between component and dynamics in pursuit of identifying the problem to be solved (customer
need) and how it will profit through addressing such need (Newth 2013). In contrast, strategy is an
external competitive approach to differentiate business and offer competitive advantage using
capabilities developed in your business model (Newth 2013). In essence, business model embodies
the organization financial and architecture of business, which becomes the foundation for business
strategy (Teece 2010). The Business Model when dissected present two components, qualitative and
quantitative. The qualitative component measured through quality includes a value proposition,
strategic resource and dynamic process.

New Business Model Of College Students
College students who have to have certain kind of software for school often find themselves in a
predicament when they cannot afford software that they need for a class whether it be for an English
major or Graphics Design major. Students are facing a new business model where companies like
adobe and Microsoft Office are making their software into a monthly payment instead of a one–time
pay for the software. Software companies should not have their software on a monthly payment for
students because low budgets, users rent not own, and is it worth it.
In general college students are broke, students are doing good to buy ramen noodles for themselves.
How could they pay over $50 a month for something like Adobe Creative Cloud, $30 a month for
Grammarly, or $75 a year for Microsoft Office? The C–Net report talks about how software and
web–based companies like subscription payment "It 's time to sign up for a subscription to
everything... You can no longer simply buy the full Photoshop program or any other software from
Adobe 's Creative Suite. Adobe announced that, now, customers must subscribe to the Creative
Cloud to get updated versions of Adobe 's full software suite. Getting the whole suite costs $50 a
month... a student program, it will cost $20 a month. This subscription Cloud service was first
introduced as an option last year and Adobe says customers prefer it. So, now, the company made
subscriptions the only option." (Carey). The subscription payment may be fine for a

Digital Transformation Of Business Models Using...
Digital Transformation of Business Models Using Exponential Technologies
EXECUTIVE SUMMARY Today, businesses are undertaking digital transformation to know what
customers value most and creating new business models depending upon the needs of people. A
business model is the way in which how a company generates revenue and how a company can
make profit. An efficient business model helps to improve the performance and efficiency of the
organisation. To develop a good business model first we have to identify the company's unique
value propositions that company offers to their customers. Customer's expectations and technology
are changing day by day. The people are all addicted to internet and they are using the Internet for
each and every purpose in their life. Due to this change, the organisations have to implement new
business models and values according to the changing needs and expectation of the customers. This
paper discusses about the 'Digital Transformation of Business Models Using Exponential
Technologies'. The business models can be reshaped by giving high priority to the customer needs
and transforming the customer value proposition and organizing operations for delivering that value.
Successful digital transformation comes not from implementing new technologies but from
transforming your organization to take advantage of the possibilities that new technologies provide.
Major digital

Comparison Of Amazon And Ebay's Business Model
Introduction
Amazon and Ebay are two well–known brands of online shopping sites. They have evolved and
grown from small firms to the giants of e–commerce today. In this essay, a comparison would be
made between the two firms.
Questioning the types of business models Amazon and Ebay's have employed and how they have
evolved over time, the driving factors of change, and finally the future outlook of each firm help
distinguish the trails both firms made to become the two leaders in the market of ecommerce. They
are imperative in making a comparison between the two because despite being direct competitors in
the same market, Amazon and Ebay's business models are distinctly different. Both companies have
altered business strategies over ... Show more content on Helpwriting.net ...
Amazon intended to benefit from cross selling on the basis that it already has a loyal installed base
in place. (Krishnamurthy, 2004) Amazon also benefited from economies of scope as its basic
infrastructure is already in place and highly scalable.
Three building blocks complement this: Amazon's feedback system, recommendation system and its
buy/sell system. Its recommendation system accounts for 35% of Amazon's sales as customers are
more inclined to buy a product based on the strength of the reviews of other customers. It also
brought repeated purchasers that account for 66% of sales. (Salehnejad, 2012)
Also, Amazon has emphasized on building "several distribution centers around the world to hasten
deliveries"(Hof and Himelstein, 1999). Coupled with its software it provides a "laser–like focus on
the buying experience"(IT Business Edge, 2012). Such a system and service is what draws
customers towards Amazon and subsequently retains them.
In 1999, Amazon became a merchant platform by introducing zShop, "a new service that allows
anyone to sell merchandise through its website". (Moore, 1999) It not only creates extra revenue
from the $9.99 monthly subscription fee from sellers but also "60 cents per transaction for payments
made with 1–Click, as well as 4.75 percent of the final sale". (Moore, 1999)
The draw for small to medium business to subscribe to Amazon's zShops would be Amazon's huge
customer

Kickstarter's Business Model
The majority of the business press often confuses business strategies with business models. For
example, a firm like Kickstarter or Amazon will be known as a new economy company employing a
distinctive business model, when both firms have simply restructured existing business models for
the digital era. Where companies like Kickstarter and Amazon shattered the competition is in their
strategies, not their business models. A business model is merely a description of how a company is
to be structured and what would be its ways of maximizing profits and inflow of cash. Its stands
completely independent of competitors and is not affected by it. What differentiates the business
from its competition is the strategy. The strategy states and covers ... Show more content on
Helpwriting.net ...
For instance, traditional retailers and manufacturers have to remain on the lookout for new entrants
into the market; traders and landlords must constantly gauge relative buyer and seller power;
businesses that rely on subscription and non–traditional retailers have to keep an eye out for
substitute offerings. To summarize, each one of the fifteen business models is governed by Porter's
five forces. For managers, the five forces model is simply an assisting tool in defining a market
strategy regardless of business model. Blue Ocean One of the more recent concepts of strategy is the
blue ocean strategy which was developed by W. Chan Kim and Renee Mauborgne. The strategy is
basically built around an analogy of the red ocean and blue ocean. The idea of the red ocean is that
of an environment that is filled with sharks and the water is bloody, signifying a crowded market.
The blue ocean on the other hand signifies an open and nurturing environment. Companies that
choose to adopt the blue ocean strategy have several advantages: 1. They create uncontested market
space 2. Make the competition irrelevant and

Spotify, Rhapsody, Pandora: Business Model Analysis
Spotify, Pandora, and Rhapsody: Business Model Analysis
The Music Industry's everlasting challenges have most recently undertaken targeted the digital
consumption of music. As technology increases accessibility with media, specifically music,
companies such as Spotify, Rhapsody, and Pandora have all taken a leap toward the online–
streaming subscription route. Unfortunately, due to the lack of support from Artist's and their
management in the past, piracy of digital music, and matching royalty rates with their limited
revenue streams, these companies face the difficulty of becoming the go–to access for music
consumption.
When digital music first came out, listeners had the option of discarding of their tangible forms of
music. Like any ... Show more content on Helpwriting.net ...
After losing the 42 million, Daniel Ek and company received 100 million dollars in investments the
following year to aid in the launch in the United States. Spotify's obstacle lies within keeping
revenue rates above licensing fee rates. The offering of a free streaming service (as well as a paid
service) caters to the crowd of listeners who continue pirate music or search for free services. By
attracting these users, Spotify gains a relationship with each user by presenting the opportunity to
personalize their music consumption. Most recently, Spotify's partnering with Facebook has allowed
users of both to create and share playlist's and view real–time news feed of what their friends listen
to.
As stated in an article in The Economist, Users continue to download digital music illegally because
it is free and because they can. Spotify's business model follows that carefree mindset of the user by
producing an attractive, easy–to–use music catalog interface that is organized with social media as
well as compatible with app–friendly devices. One example of distribution that favors the
preference of the listener, as described in a recent story on USNews.com, is Pretty Lights. Pretty
Lights a successful American touring electronic Artist/DJ and he recently became one the most
downloaded Artist's on thepiratebay.org (a website for illegally downloading digital music files).
After learning this, Pretty Lights and his management

Difference Between Business Model And Strategy
Introduction: Business model is the word generally being confused with the strategy. In traditional
days, Organisations are confined to particular boundaries and used to operate in their own country
of origin. Strategies are placed for the success of the company. Due to the developments in
technology and global expansions of the business, a term called business model have been evolved
to identify the customer needs and the logic to transform those in to company's profit. So, this essay
will show the difference between business model and strategy and also how their alignments are
going to impact the firms' performance. Literature Review: Strategy: Chandler (1962) defined
strategy as "The determination of the basic long–term goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of resources for carrying out these goals". Strategy
is related to long–term goals, policies and major issues of the business which determines the success
or failure of the organisation. In simple words, strategy is something which accomplishes the firm's
goals. Strategy is about being different from competitors by performing better (Magretta, 2002). A
strategy of an organisation should not be changed very often and should be planned for long–term
because strategy needs a period of consolidation. Businesses follow strategy to have a competitive
advantage over the other firms in the market. According to Porter(1980) there are three generic
strategies that

Business Models in Ecom
Overview Lecture 2 E–Commerce Business Models
Boriana Koleva bnk@cs.nott.ac.uk C54 Key components of e–commerce business models Major
B2C business models Major B2B business models Business models in other emerging areas of e–
commerce Benefits and Problems with E–Commerce
E–commerce Business Models
Business model – set of planned activities designed to result in a profit in a marketplace Business
plan – document that describes a firm's business model E–commerce business model – aims to use
and leverage the unique qualities of Internet and Web
Key Ingredients of a Business Model
Five Primary Revenue Models
Categorising E–commerce Business models
No one correct way We categorize business models according to e–commerce sector ... Show more
content on Helpwriting.net ...
isticated set of sourcing and supply chain management tools Application service providers a subset
of B2B service providers Revenue through fees (for market making services, supply chain
management)
3
Exchanges
An electronic digital marketplace where suppliers and commercial purchasers can conduct
transactions
Exchange.eSteel.com, GEPolymerland.com
Industry Consortia
Industry–owned vertical marketplaces that serve specific industries Horizontal marketplaces, in
contrast, sell specific products and services to a wide range of industries Leading example: Covisint
Usually owned by independent firms whose business is making a market Generate revenue by
charging transaction fees Usually serve a single vertical industry Number of exchanges has fallen to
around 700 in 2003

Private Industrial Networks
Digital networks (usually, but not always Internet–based) designed to coordinate the flow of
communications among firms engaged in business together Single firm network: the most common
form (example – Walmart) Industry–wide networks: often evolve out of industry associations
(example – WWRE)
B2B Business Models Summary
Emerging business models
Case Study (1)
New ways of pricing products and services Priceline.com (name–your–price)
Customers choose their price for products & services Partnerships with leaders of industry such as
travel, lending and retail
Demand–Sensitive Pricing
Sites that allow consumers to lower the price by joining with other

M&S Business Models
QUESTION 1: LIST THE BUSINESS MODELS USED BY M & S Product/ Service
Customization Model M & S moderately or diligently aligns its products and ideas based on the
dynamic or ever transforming market trends and fashion needs. According to the case study, M & S
is highly concentrated in the fashion industry and its ever–growing demand for its exclusive
garments and customized accessories. Hands–on approach is mostly utilised by modelling agencies
to fulfil the industry's standards, and in the process valued customers attain assistance from M & S
to enable open communications pertaining to the required alters to be made to placement orders. M
& S has put in place two forms of communications to assist customers who require to voice out
changes ... Show more content on Helpwriting.net ...
M&S accomplished the goal of merging its global outlets and in the process transforming them into
well designed website that offers web based catalogs showcasing all of their product categories that
are on sale. The website enables potential buyers to have detailed description of the product before
purchasing. With more detailed description of the products, customers can make intelligent
decisions before buying and be able to make payments via various payment channels like debit and
credit cards. Chan H (2001) states, "note here that the business drives the specification of the
product and the consumer chooses whether or not to buy a prefabricated product. An example of this
in the traditional commerce is purchasing suits of the rack". Business to employee Business to
employee is an e–commerce model in which an organization delivers services, information, or
products to its individual employees. The B2E category is a subset of the intrabusiness network,
therefore it provides conducive and confidential working environment (team members/individuals)
employees of an organization. M&S maximizes the use of the EC initiative by setting up a security
system that tracks down fraudulent activities within the organization, and generates reports that are
instantly conveyed to the security department. As a way of strengthening the security, M&S
implemented a quick notification of fraudulent activities through short text messages (SMS) via
mobile

The Role Of External Factors On Business Models
Module 5: Business Model Generation 2 Samuel Bowers Liberty University BUSI 690 RQ1 The
Role of External Factors in Business Models According to Osterwalder and Piqneur, analysis of
external factors, also called the business environment, contributes to the design of successful
business models. There is a multitude of different factors that will have an impact on which business
model will be chosen, and the greatest will include key trends, market forces, macro–economic
forces, and industry forces (Osterwalder & Pigneur, 2010, p. 200). As all are considered external
factors, they will influence the environment in which the firm operates. Key trends extend to
multiple areas including regulatory, societal and cultural, ... Show more content on Helpwriting.net
...
Hence, flexibility in the business model and internal structure is vitally important. Hasbro is an
example of a company that changed its strategy in response to external conditions. Founded in 1923
by two brothers, Hasbro would spend the first 20 years of operation selling textiles. In response to
changing market conditions, the company diversified into pencils and general school supplies. It
further evolved by manufacturing and selling doctor and nurse kits for children in 1940. Just two
years later Hasbro had transitioned to selling toys exclusively. The company would go on to produce
several highly successful products including Mr. Potato Head, GI Joe, and Transformers (The
Richest, 2014). RQ2 Definition of Business Model Design and Innovation Business model design
and innovation is a multi–faceted topic that goes beyond the products or services a company sells. It
requires the firm to analyze the desires of the customers, required and available resources, and to
subsequently develop a business model in line with these findings. The ultimate objective of this
exercise to create growth and obtain greater profitability. Business model innovation is derived from
one of the four strategic objectives outline the textbook by Osterwalder and Piqneur. These four
objectives include identifying and solving a need which the market has not resolved, offering a new
product or service that customers did not have access to before, to improve options available to the
existing

Zara Is A Modern Day Fashion Business Model
Zara is a modern day fashion business that takes an unconventional approach in their business
model. Zara is one of the largest international fashion companies which belongs to the distribution
group called inditex. They sell well made relatively cheap pieces of clothing that is always cut
according to the latest fashion designed. Their customers are the heart of their designs, productions,
distribution and sales. Just like all fashion companies, their primary goal is to be the number one
fashion retailer. To obtain that success, their new business model challenges the industry and pushes
them ahead of their competitors. Zara unique approach to fast fashion pays off as many other brands
are trying to follow their success. What sets Zara apart from other modern businesses is that, their
business model is to react to fashion trends as quickly as possible. Zara adapt quickly to current
trends and fashion that the public demand. Their goal is create fresh new trendy design almost every
one to two weeks that will be ready to be produced and shipped. Their primary goal in creating these
new sketches is not only to identify trends but to evolve and never repeat their designs. Zara's
company's strategy involves stocking their inventory very little and updating their collection often.
This benefits them because it makes the shopper feel like they have to buy the item, or else it would
be sold out later on. Zara's risk taking strategy has proven to work because according to

The Sharing Economy : A New Business Model
The sharing economy is an economic system that revolves around the sharing and renting of items
from other people. Uber and Lyft are two huge companies that use the sharing economy to run their
businesses, both companies hire people who own cars and have free time. Employees drive around
until they get a signal that someone needs a ride through their online app. This business may just
seem like an updated taxi service, because that is exactly what it is. These companies are
devastating the taxi industry by taking away the business that taxi drivers have had for years. The
sharing economy seems like a great idea on the surface but, the underlying fact is that it is taking the
jobs of working people. The sharing economy is fueling the growth of these new companies and is
the reason that many taxi drivers are not able to make the money that they need, to stay relevant taxi
drivers either need to join the ride sharing business or create a new business model. As the sharing
economy continues to grow in popularity, Uber will gradually continue to destroy the taxi industry.
Taxis are highly regulated and rent is paid on vehicles, so drivers have to use their profits to pay for
their vehicle. With these new companies there are little to no regulations, and local governments
have no control over drivers. With these companies on the rise it is becoming harder and harder for
taxi drivers to make their money. One of the big differences between taxis and Uber drivers is that
taxi

Dropbox Process Improvements Of The E Commerce Business Model
Airbnb Process Improvements Name Institution Airbnb Process Improvements Starting its humble
origins as "Airbed and Breakfast", specializing in a customized and personal service of offering
residential space to people in need, Airbnb has seen tremendous growth in the period subsequent to
its inception. The central premise of conducting business at Airbnb lies within the e–commerce
business model. The entirety of operations is conducted online, with various partners across the
globe collaborating with Airbnb in order to serve the boarding and lodging needs of the public. The
business model of Airbnb is dependent on the various collaborators, which will be referred to as
global residential partners within the scope of this document. The demand for boarding and lodging
of domestic and international travellers is met by residential spaces offered across the world, in
collaboration with Airbnb. In this regard, combined, collective efforts are required in order to
successfully make quality provision of the services needed. The partners of Airbnb are the parties
that are ultimately responsible for the quality of service experienced by the customers. Pickup
Services from Airport and/or Transport Hubs Travelling is a harrowing experience, with
international travel, even more so. In regards to the provision of services to travellers, a potential
issue can be related to that of travel to Airbnb partner destinations from the airport or local transport
hubs. Relaxation is a

How Business Models Can Be Used For Management Essay
1. List and describe (in a few words) at least two perspectives of the way that business models can
be used for management. (2+2=4)
Business models can be used by management to get a sense of how the
organization/company/startup is creating, capturing and delivering value to its customers.
Management can seek to optimize the business by
1. (2) validating parts of the business model hypotheses in a pivot experiment in order to find a plan
that works.
2. (2) Optimize efficiency by refining parts of the business model
2. What is the formal definition of a business model that is common across all perspectives of
business models? (4 points)
A business model is how an organization creates, delivers and captures value.
3. What does "consistency" mean in the design of a business model using, for example, the Business
Model Canvas? Give an example of an INconsistent business model. (2+2=4)
1(2): consistency in a Business Model Canvas means that the nine building blocks relate to one
another in harmony. For example, if the customer segment is women aged 20–30 in the Bay Area of
San Francisco, the channels to reach the customer segment(s) has to correspond to the customer
segments. In practice, this means that one of the nine building blocks cannot be transformed without
changing, or at least revising, the remaining eight.
2(2): An example of an inconsistent business model would be an airline company whose value
proposition is to offer flights at a lower price (cost–driven)

The Business Model Essay
The Business Model
Michael Lewis (2000: pages 256–257) scoffed at the whole attempt to formalize the definition of
business models when he wrote that " "Business Model" is one of those terms of art that were
central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how
you planned to make money."
In an abstract of his paper "A Mesoscopic Approach to Business Models: Nano Research on
Management" published in "Economic Issues in China" Dr. Junyi Weng stated that "Business
Model, a well known important and extensively used term by media, management consultancy and
business top managers, is just in an embarrassment that there is no consensus about its definition
and few papers in academic ... Show more content on Helpwriting.net ...
However, this paper chooses this definition as theoretical perspective of analysis for this paper
subject to the following modifications: A business model is overall framework and philosophy by
which a company (intends or) creates value in the market place through enhancement of its own
combination of raw or in–put materials to create products (tangible and intangible including
services), product packaging and systematic distribution in order to generate some or the best
possible profit.
We wish to adopt the principle enunciated by H. Chesbrough and R. S. Rosenbloom that The
Business model mediates between the technical and economic domain:
Measured in technical domain measured in economic domain
From this descriptive model a business model can be viewed as the activity processes, which are
combined and designed for generating advantage or profit for a company.
There are two levels of technological intervention in the Business endeavour, which we define as
"technology of production" and the "technology of trade." These two levels of technological
intervention call for a re–evaluation of business models either for modification or for re–invention.
The technology of production may bring about greater efficiency in production, improving quantity
or quality of

How Does External Factors Affect A Business Model
External Factors External factors of demand influence the design of successful business models.
Market forces such as customer needs and customer demand are the foundation of successful
business models (Osterwalder & Pigneur, 2010). If a business does not address the needs and
demands of a customer there is a limited need for the business to exist. Additionally, businesses
must identify the price customers are willing to pay for a product and which customer segments
represent the greatest growth potential (Osterwalder & Pigneur, 2010). Key trends, such as
technological innovation, have played an increasingly important role in successful business models.
The rise of information systems and new advances in technology have been an important external
factor, which business models must address (Hedman & Kalling, 2003). Business model that are
unable to adapt to changes in technology must be changed through innovation or the underlying
business will not be successful. Successful business models must address and adapt to a variety of
external factors. Customer preferences, new technologies, regulatory trends, and competitors are all
external factors which must be addressed by successful business models (Osterwalder & Pigneur,
2010). External factors of demand play a significant role in successful business models. For
example, with Business models are designed to fit certain business environments and markets
(Osterwalder & Pigneur, 2010).
Business Model Design and Innovation Business model innovations have changed entire industries.
Business model innovation occurs when original business model designs are challenged and
unsatisfied, new, or hidden customer needs are met through an entirely new value proposition
(Osterwalder & Pigneur, 2010). Firms must have strategic agility if they wish to be able to
transform their business models and pursue innovation (Chesbrough, 2010). When Apple introduced
the iPod and the iTunes store in 2003, it revolutionized portable entertainment, created a new
market, and redefined Apple as a company (Johnson, Christensen, & Kagermann, 2008). Apple's
iPod was not the first technology of its kind. In fact, a company called Diamond Multimedia
produced a similar

The Discovery Of A Business Model Innovation
The disruptive business models are those that surprisingly manage top to make new markets and
disrupt the existing markets. To discover these innovations, it requires a level of innovativeness and
open–mindedness that will enable one to create new influential innovations. The discovery of a
business model innovation usually starts with customer value propositions and customer segment.
The business model brings about logic and provides vital data that demonstrates how a company can
formulate itself and provide valuable input to customers. Furthermore, it facilitates the setup of
revenue allocation, the costs and the various profit margins that the business delivers (Colovic,
2012).Furthermore, these different issues are also interrelated and, therefore, offer a competitive
advantage besides bringing in huge profit margins. Business models also provide a business design
and outlay that defines how the particular company can convert the various payments received into
profits, and help the company to excel as an innovation and as a business model, as well as to
understand the different business design options according to the customer needs and the various
technological advances. To develop a successful business model, one has to ensure that the
competitive advantage of the company remains a permanent part of it and that this model is difficult
to duplicate and redo. The business model brings about the financial and organizational architecture
of the particular business. The

Relevant Types Of E Business Models
Relevant types of e–Business models In this case analysis, we use the term e–Business as a broader
definition of e–Commerce (EC), not just solely describing the buying and selling of goods and
services, but conducting all kinds of business online such as servicing customer, collaborating with
business partners, delivering e–learning, and conducting electronic transactions within an
organisation. This has to be stated since in some sources, the terms EC and e–Business are
considered equivalent. E–Commerce have been defined and categorized in many different ways. A
common classification of EC is by the nature of the transactions and the relationships among
participants which puts NFD Food Services in the B2B category. One of the major characteristics of
EC is that it facilitates the creation of new business models. Business models have been defined and
categorized in many different ways. According to Turban et al. (2012), "A business model describes
the manner in which business is done to generate revenue and create value". Within the scope of this
case analysis, we only take the classification of e–Business models by Rappa (2010) into
consideration. This is a comprehensive and cogent taxonomy of e–Business models that includes the
following basic categories: Brokerage Advertising Infomediary Merchant Manufacturer (Direct)
Affiliate Community Subscription Utility The models are implemented in a variety of ways, as
described below with examples. Moreover, a

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