BUSINESS MODEL GENERATION EXERCISE
RQ1 What is a Business Model? At least 2 paragraphs.
The first step in implementing an effective business model is to adequately understand the definition. Osterwalder and Pigneur (2010) define a business model as “the rationale of how an organization creates, delivers, and captures value.” (14) In simple terms, a business model is an outline or a blueprint an organization uses to constract effective processes, structure, and systems. While business models can be complex and unique, a basic understanding and definition of a business model is important for success. To simplify the complexities of defining a business model, one can view customer segments, value propositions, channesl, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure as the nine basic building blocks of a business model (Osterwalder & Pigneur, 2010, p.16-17). Each of these segments are subcategories that are essential in building an effective business model which is adequately defined and ready for implementation. RQ2 According to the Business Model Generation and/or Strategic Management Concepts and Cases literature, what is a business model? (Please discuss/analyze well beyond a definition). Need at least 2 scholarly articles and subsequent write-up. As described in the previous answer, a business model is defined as “the rationale of how an organization creates, delivers, and captures value.” (Osterwalder and Pigneur, 2010, p. 14) While this definition is just a starting point, there is much more to a business model than this description provides. A role of a business model is to “provide a set of generic level descriptors of ow a firm organizes itself to create and distribute value in a profitable manner” (Baden-Fuller and Morgan, 2010, p. 160). Often, business models become synonymous with the company that implements them. Apple, Mcdonalds, and Starbucks...
References: Baden-Fuller, C., Morgan, M. S. (2010) Business Models as Models, Long Range Planning. 43(2). p. 156-171
Doganova, L., Eyquem-Renault, M., (2009) What Do Business Models Do?. Research Policy. 38(10). p. 1559-1570
Osterwalder, A., Pigneur, Y. (2010) Business Model Generation. Hoboken, NJ: Wiley
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