How to improve your company’s business model?
The foundation of every corporate strategy is a business model which defines how a company creates value for its customers and the way it makes money. A business model is created through a logical combination of the following elements: offer, customer segments, distribution channels, relationship with customers, income and cost structure, the company’s key resources, crucial operations and a network of business partners.
Innovations in a business model allow you to break the accepted norms and stereotypes existing in a particular field. There are many examples of companies which have changed “traditional” industries thanks to developing innovative business models. Examples of such well-known brands as Skype, Zara or Apple clearly show that more and more companies notice that business model innovation has become the key factor distinguishing a company.
Business model innovation means looking at every component of the model in a fresh way in order to find new possibilities of creating value for customers.
EFFECTS:
- creating a comprehensive picture of the existing business model and the connections between its elements,
- generating ideas for the improvements to the existing business model or creating a vision of a new model,
- selection of a business model which will make it possible to gain competitive advantage and make the most of the market potential.
