Summary: Business Model Generation

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Business Model Generation Exercise 2 Frank Bentley BUSI 690- POLICY AND STRATEGY IN GLOBAL COMPETITION Liberty University August 1, 2015 RQ1: Considering a business model, a firm can understand that its purpose is to create, capture and deliver value to the consumer. With this understanding, a firm can find that there are both internal and external perspectives, which can propel a business model forward. Looking at a business model, it provides seven basic building blocks, some to include customers, value propositions, customer relationship, revenue streams and key resources. In regards to a business model success those external factors play a tremendous success, to include customers, government, and competitors. These particular…show more content…
These particular rules and regulations can have a positive impact on a firm in regards to their business model. In the end, if those particular functions (rules and regulations) are accepted, then the firm can focus on improving its business model through innovation and differentiation. This concept of understanding competitors, allows firms to incorporate successful business models through the development of innovation and adoption, which helps in establishing that successful business model in order to derive towards a competitive advantage. In order to drive towards this competitive advantage, firms look at incorporating that differentiation factor and implementing those best practices undefined by its competitors, which in turn derives procedures that create value for the consumer and helps increase firm…show more content…
For example, one of the most innovative firms Apple Inc. had a direct ad continuous focus on the innovation of personal computers. This allowed the firm to overtime evolve and direct some of its activity towards music distribution through the interlinking of music software and personal computers, which was then distributed amongst the consumers as a music distribution product also known as an IPod. RQ3: According to Osterwalder and Pigneur (2010), some the challenges to Business model and design and innovation are found in four areas. These underlying challenges include finding the right model; testing the model before a full-scale launch; Inducing the market to adopt the new model; continuously adapting the model in response to market feedback; and managing uncertainty. Business model innovation is still uneasy with the challenges mentioned, due to the unpredictable aspect of implementing processes. Re-inventing or re-designing a business model requires the firm to fight uncertainty until sound solutions are brought to light. Seeing that this doesn’t happen overnight, firms have to understand that it will take a lot of time, energy and investment and must be willing to sacrifice in order to see sound solutions come to
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