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Business Model vs Business Strategy


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How does your business strategy relate to your business model? Learn how in this slideshow.

Published in: Business

Business Model vs Business Strategy

  2. 2. What is a business model?
  3. 3. The proprietary method used to acquire, service, and retain customers
  4. 4. Let’s explore Google
  5. 5. What’s Google Business Model? <ul><li>It’s a leading Internet based company offering online based services globally. They also developed cutting edge applications for users </li></ul><ul><li>Leverages on the advertising model </li></ul><ul><li>- Google Adwords </li></ul><ul><li>Google Adsense </li></ul><ul><li>Google Search Technology </li></ul>
  6. 6. What makes Google GREAT… <ul><li>The Internet most visited website (63m visitors per day with website value close to US$8.4bn) </li></ul><ul><li>Net Income of US$6.5bn in 2009 </li></ul><ul><li>Whopping US$175bn in market capitalization </li></ul><ul><li>Most dominant search engine in US with market share of 66% (2009) </li></ul>
  7. 7. Behind this GREAT success, there’s strategy <ul><li>What’s business strategy in brief? </li></ul><ul><li>A plan of action intended to accomplish a goal </li></ul><ul><li>Google’s context (Taken from its 2010 strategy) </li></ul><ul><li>Cloud computing would be the centerpiece </li></ul><ul><li>Advertising would continue to form the lion’s share </li></ul>
  8. 8. Once strategy in place, next step is to EXECUTE <ul><li>Example of strategies include new product, new market, restructuring or divestment </li></ul><ul><li>According to Ernst and Young 2005, 66% of corporate strategy is NEVER executed </li></ul><ul><li>So, it’s critical to execute strategy WELL i.e. have specific yet realistic objectives, have the best resources and have in place strong management to execute the desired strategy </li></ul>
  9. 9. Business strategy can link to business model Example #1 If Google ventures into online publications segment - information databases/magazines, business model may change to subscription model Example #2 If Google ventures into selling their innovative hardware over the Internet, they may change their business model to retail like Amazon etc