Swot Analysis Of Business Model And Customer Centric Essay

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
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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...
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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

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

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 ...
31.Introduction.......................................................................................................................41.1.Background............................................................................

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.

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

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

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

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

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

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–SolГs, H., Casadesus–Masanell, R. and Grifell–TatjГ©, 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:

An Investigation of Dell and Hewlett PackardвЂ™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

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

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

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: В•Order tracking В•Purchase
history В•... 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

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.

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

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

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) вЂЁ
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. вЂЁ
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) вЂЁ
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 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

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

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

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

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

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 ...
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

Dropbox Process Improvements Of The E Commerce Business Model
Airbnb Process Improvements Name InstitutionAirbnb 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

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 digitalmusic, 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

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,...
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

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

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

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 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

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

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:
в—ЏAirport access and handling costs
в—ЏAircraft equipment costs
в—ЏPersonnel

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

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 toBusiness 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

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

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

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

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