Paper Example on Successful Business Models

What Role Should External Factors of Demand Play in Successful Business Models?

A business model refers to the strategic design that describes the rationale of the manner in which an organization is able to create deliver and also capture the perceived value of success CubasDiaz (2018) Innovative business models are very important parts of the role of developing strategies of good performance and guarantee quality services at large.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

It is therefore very essential for all the entrepreneurs, the executives and consultants to undertake the measures of the rapid evolution of the business world at large. The focus should be to comprehend well-formulated features of addressing the problems that are related to the challenge of businesses through innovation.

Business model entails the effort of developing values for the customers, companies and the society; this means that every participant of business activity should be given an opportunity to reap maximum benefit.

The target cannot be realized just like that innovation must be put into consideration, businesses should be ready to shed off the old method and replace it with the advanced technology. Several questions come to the mind of any willing investor, how can one manage a systematic design, invention and implement the new model of a business? How one can take the challenge of transforming the visionary ideas into a game-changing design that transforms the old method into improving. This research addresses the major segment of a good business model.

What Role Should External Factors of Demand Play in Successful Business Models?

Design, of the different models of business, paves the way to successful practice. A business model plays an important role to the business operations. It is divided into nine major segments: customer segments, value propositions, channels, customer relations, revenue streams, key sources, key activities, key partnership, and cost structures in this section the nine model of business strategy will be addressed.

Customer Segments

Customers make the lifeblood of any business, without customers, the business cannot make any reasonable progress CubasDiaz (2018)

There is no single business or a company that can survive without the customers. It is, therefore, the core duty of every business to ensure that all the customers are fully satisfied. To make a good customer model the business should make proper classification of the customers, this is grouping them into distinct categories according to their needs. Those with the common needs are put together, in classification only the common attributes that matter the customer's behaviours are considered. A conscious decision is realized by regarding the understanding of the customer's needs. This strategy will ensure full customer satisfaction and therefore developing loyalty.

Value Propositions

This is building the block that describes the bundle of product that makes value for a particular customers' segment. The value proposition responds to the question why most of the customers turn from one company to another. Its target is to solve the customer's problem of dissatisfaction with the company's product. In response to this, an aggregate of bundles of goods suitable for customers' needs is selected and put in place. The satisfied customer will guarantee business profitability and success.

Channels this refers to the description of how the company reaches the customers and gets the immediate feedback by considering major issues that matter to the customer's needs. The strategy keeps the business informed and responsive to the competitive environment.

Customer relationship this segment describes the relationship between the company and specific customer segments. In the planning process, the company should clarify the kind of relationship that is necessary with the customers; it can range from personal to automated level. This may be an acquisition and customer's retention.

Revenue streams this refers to the income that a company generates from every customer's segment the business must consider the income it gets from each customer and attach the corresponding value for each. The key resources, this refers to the most important assets that make the business to work successfully Cascio (2018). The resources can be in different forms, the physical, finance, and human resources. Determining the resources helps in creating good customer assurance of continuous satisfaction. Prior identification of the resources helps in predicting the potential expense of business operations.

The key activities, this is the most important things a customer must do to enhance the success of the business model; it refers to the successful activities that the business should engage to realize revenue.

Key partnerships this is the network suppliers that can make the business model work effectively Olson et al. (2018). The company must be dedicated to forging the forward partnership to create advantages of acquiring the resources and interdependence.

The cost Structure this refers to all the cost incurred in the process of business operations in developing value, keeping good customer relationship and generating income. The cost is calculated by evaluating the required resources and considering the activities needed.

Conclusion

A good business model gives one the most powerful tool that is simple and well tested to ensure good business operations towards the set objectives, for a business growth to occur the management must stretch its hand to the internal capabilities in order to create a large number of customers and healthy partnership. Therefore, innovation is very fundamental in keeping the company in the pace of progress.

References

CubasDiaz, M., & Martinez Sedano, M. A. (2018). Measures for Sustainable Investment Decisions and Business Strategy-A Triple Bottom Line Approach. Business Strategy and the Environment, 27(1), 16-38.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education. http://alvarestech.com/temp/PDP2011/pdf/Business%20Model%20Generation%20(1).pdf

Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.