This document discusses business models and their components. It outlines that a business model is an abstract representation of a firm's strategy that outlines how it can deliver value to customers. The key components of a business model include the value proposition, market segment, value chain structure, revenue generation and margins, position in the value network, and competitive strategy. New business models for the internet economy and e-commerce business models are also discussed. Finally, the concept of the triple bottom line is introduced as assessing financial, social and environmental impacts.

1. Presented By –
57 – Vishwas Ohol
58 – Vivek Bagul
59 – Yash Kochar
60 – Yogesh Sardar
301 – Strategic Management
Topic – Business Models

2. Business Model
 A business model is an abstract representation of
some aspect of a firm’s strategy; it outlines the
essential details one needs to know to
understand how a firm can successfully deliver
value to its customers.

3. Components of Business Model
 Value Proposition – A description the customer problem, the product that
addresses the problem, and the value of the product from the customer’s
perspective.
 Market Segment – The group of customers to target, recognizing that different
market segments have different needs. Sometimes the potential of an innovation
is unlocked only when a different market segment is targeted.
 Value Chain Structure – The firm’s position and activities in the value chain and
how the firm will capture part of the value that it creates in the chain.
 Revenue Generation And Margins – How revenue is generated (sales, leasing,
subscription, support, etc,), the cost structure, and target profit margins.
 Position in Value Network – Identification of competitors, complementors, and
any network effects that can be utilized to deliver more value to the customer.
 Competitive Strategy – How the company will attempt to develop a sustainable
competitive advantage, e.g., by means of a cost, differentiation, or niche strategy.

4. New Business Models For Internet Economy
E-Commerce Business Model
 E-Commerce is a business model where
information for buying selling and transportation
of goods/services move electronically. E-
Commerce includes any technology that enables
a company to do the business electronically. E-
Commerce involves marketing, retailing,
customer service, banking, billing, corporate
sector purchasing, secure distribution of data,
and other value-based services over the Internet.

5. Strategy Shaping Characteristics Of
E-Commerce Environment
 Impact on Competitive Rivalry.
 Impact on Barrier to Entry.
 Impact on Bargaining Power of Buyers.
 Impact on Supplier Bargaining Power and
Supplier-Seller Collaboration.
 Overall Influence on an Industry’s Competitive
Structure.

6. Integrating Social and Environmental
Sustainability Issues In Strategic
Management
Water Scarcity and Quality Climate Change
Energy Air Pollution
Waste and Waste Management Biodiversity Loss
Forest and Soil Degradation Earthquake and Volcanic Eruption
Population Growth, Urbanization and
Demographics
Food Production and Safety
Poverty Human Health and Safety
Human Rights Corruption

7. Triple Bottom Line
The “Triple Bottom Line” concept underscores the
fact that companies and other organizations
create value in multiple dimensions. The term
TBL was introduced in 1994 by John
Elkington, countering the narrower focus of term
‘eco-efficiency’, which focused in the financial and
environmental dimensions of performance. TBL
thinking, by contrast extends to social impacts –
and to the wider economic impact issues that are
rarely captured in the financial bottom line.