Business Models and Development-Free-Samples-Myassignmenthelp.com

Question: Define the Concept of a Business Model. Answer: A business model conceptually in the medium of texts, presentations, tabulations or charts delivers the structure, objectives and adapted procedures of an organization, supporting in the gain of social, economic or cultural stature. Theoretically or practically, the model highlights the insight of any venture by understanding its strategies, customer base, managerial implications, infrastructure, trade policies, outbound and inbound sourcing procedures. Literature reviews provide various informal and formal descriptions of the same, emphasizing on the elaboration of the use of the models in the enactment of commercial promotions. Relative to entrepreneur set up as well as is beneficial for the management department for future improvisation; these are highly practiced in any invested venture (Zeleti, Ojo Curry, 2016). This essay ensures to address to the distinct concepts and relevant investigations in reference to e-business archetypes, active business models and cost or revenue mod el for promising developments. Figure 1: Business Model Aspects. (Source: Amit Zott, 2012). Elaboration on the three distinct models and their concepts is the next topic in discussion. Firstly, elaboration on the E-Business model gives a brief description of the same, stating it is a procedure to conduct a venture on the internet. E-Commerce plays a vital role as a strategic move in this process. Involving purchase, promotion, supplies, and services revolving a product, towards their potential and existing customers are the main objectives. In addition to which the payment procedures, production management and business collaborations are also under focus (Gloor, 2012). The model for this category comprises the basics as well as the revenue it generates and expenses involved. Few aspects surrounding the components of the model are briefed. Code of value proposal: this field highlights the ways a product or the service benefits the customers. Revenue Model: concentrates on the companys profit generation. Market Position: the revenue field helps in charting the competencies and the brand position. Competitors Analysis: this lists down all the potential contemporaries in the same category, identifying the challenges and advantages. Venturing Strategy: this field describes the ways to attract its target audience and Managerial Implications, responsible for the future growth and organizational development are strategized. Proceeding towards the business model on an active perspective enforces the consideration of the existing literature on business models comprising interdependent decisions that surpasses the initiated focus and stretches the limiting points analyzing the possible capabilities to improvise in sense of brand positioning and future collaborations. Advantages of the simulation help to evaluate new procedures and proposed categories. Prior to the implication of any proposal in reality, it examines the impacts and since it provides a reality check, it brings out the possible uncertainties and diversities revolving the probable implications. Relevant researches advices to set two parameters involving structure design and themes that sights the sources for the value generation of the system (Muhtaroglu et al., 2013). Revenue/ Cost architecture in reference to business is a procedure and strategy towards sustainable and evaluated development of a venture (Dudin et al., 2015). This model involves the attention on the strategy of marketing, systems enabling the increment in sales by collaborating channels, audience and the product in consideration and programs to engage a wider market target. The system block also focuses on the technological improvisation as the program-building segment evaluates the entire performance (Goiri, Guitart Torres, 2012).. Two promising ways a business model would prove to be beneficial is by providing clarity and possibility. A model firstly detangles to provide a clear notion your business idea promises (Bohnsack, Pinkse Kolk,2014). This is a tabulated strategy to provide solutions using specific methodologies as pre-described briefly. A network development is involved in decomposing a dynamic problem into segments of static problems and optimizing the performances accordingly (Kiel, 2014). The calculations provided by the model help us evaluate the proposed changes whether suitable for the business structure. The main activities are divided into two slots, primary and secondary. The former directly develops the product and the latter pays attention in the improvisation. The core activities involve sales and production. Classified activities involve outsourcing efforts, such as technology development, management codes; even if they do not directly, impact the value generation still is a vital segment for further development and innovation in an organization. In the revenue and cost building block, the highest cost possible is considered and the organization is fragmented into two groups. Firstly, the cost controlled section, minimizing the cost and secondly, the group with the value-generation objective. Most organizations are in between these extremities. 90.38% companies are recorded to be under the second category, out of which 21% uses the cost model and the value creation model is followed by 78%. Future business models consider a redesign, which would involve the direct communication between the customers and the suppliers. This would proactively ensure a personal connection to the customer base as in case of social media marketing. Few companies involve revenue generation from communities. The models project collaboration with partners that increases the profit figures. Developing models benefits the companies for innovation and solving diverse issues dynamically. With the fluctuating economies, societies and the environment the business world is volatile. Uncertainty and fear of Stepping in an unpredicted prospective could restrict us in the field of innovation yet inventing and transforming is a necessity now (Amit Zott, 2012). Market value of brands experimenting at times is witnessed to earn a hike in comparison to their stubborn contemporaries. Consistency of market positioning in this dynamic world of changes it is needed to create changes with a calculated risk and evaluated probabilities for a general profit. Collaboration is a key activity, which involves a wider range of opportunities. Traditional ways needs to be revised each time to attain most of the benefits. Reconfiguration and innovations in business models is the ultimate benefit in the modern economy to stand through the test of time and changing surroundings. Louis Vuitton is one such global brand expanding, reconfiguring its business strategy each time in accordance with change in economy and demands from its customer base (Chandon, Laurent Valette-Florence, 2016). It has revised its business model for different periods, classified as- Early days, Golden days, Modern age and Present age, each witnessing changes in the business model. The characteristic features of reconfiguration are tabulated as follows in TABLE 1: LOUIS VUITTON MODEL ASPECTS EARLY DAYS (1854-1892) GOLDEN DAYS (1893-1936) MODERN DAYS (1937-1996) PRESENT DAYS (1997-NOW) PARTNERS RAW MATERIAL SUPPLIERS Suppliers local partnership in US. Suppliers, local partnership with known personalities is maintained. Suppliers, local partners, personalities model agencies. CAPABILITIES PRODUCTION New outlets production Globalizing production Globalization, marketing fighting, counterfeit production. KEY SOURCES Warehouse. Warehouse Warehouse Known sources. COST-STRUCTURE Production relative. Production relative Production related. Production relative. VALUE PROPOSITION Luxurious quality Luggage goods Customized orders 1. Timeless quality, status symbol, customized order. 2 .Boxes, luggage trunks. 3. Women handbags perfumes. Same as golden age in addition to that is bags briefcases for Men. Maintained its expertise and in addition fashion goods like watches, shoes, jewelries production. CUSTOMER RELATIONSHIP Personal engagement Personal lifetime free repair provided. Personal lifetime free repair provided Previous offers exclusive club launched. TARGETED CUSTOMERS High-class society royalty. Imperial families, aristocrats, celebrities, travelers, rallies drivers, high society, loyal clients were targeted. Prestigious clients mainly high class across America, Japan China. Luxurious loyal clients. DISTRIBUTION CHANELS Outlets in France and London. Limited stores, exhibition, gossips newspapers served as medium. GLOBAL campaigns media promotions were done. Global stores, magazines, campaigns and websites. REVENUE Sales. Sales. Sales. Sales. TABLE: 1 Strategizing based on mass marketing, self-production control; maintaining the market status and classifications by products service and channels, it continues in trending and building a market position commendably (Solomon, 2014). Figure 2- Louis Vuitton business model. (Source: Chandon, Laurent Valette-Florence, 2016). Based on the analysis, it is concluded that a business model provides a medium to communicate the objectives to the world and methodically strategize to achieve targets and stature with a transparent motive. It is a documentation of strategies, improvising the venture providing all necessary evaluations and forms the base-camp for innovation utilizing technologies, new concepts supporting financial status and workforce, with correct vision following practical methodology. References: Amit, R., Zott, C. (2012). Creating value through business model innovation.MIT Sloan Management Review,53(3), 41. Bohnsack, R., Pinkse, J., Kolk, A. (2014). Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles.Research Policy,43(2), 284-300. Chandon, J. L., Laurent, G., Valette-Florence, P. (2016). Pursuing the concept of luxury: Introduction to the JBR Special Issue on Luxury Marketing from Tradition to Innovation.Journal of Business Research,69(1), 299-303. Dudin, M. N., Kucuri, G. N., Fedorova, I. J. E., Dzusova, S. S., Namitulina, A. Z. (2015). The innovative business model canvas in the system of effective budgeting. Gloor, P. (2012).Making the e-business Transformation. Springer Science Business Media. Goiri, ., Guitart, J., Torres, J. (2012). Economic model of a cloud provider operating in a federated cloud.Information Systems Frontiers,14(4), 827-843. Kiel, I. H. (2014). Entrepreneurial marketing. Muhtaroglu, F. C. P., Demir, S., Obali, M., Girgin, C. (2013, October). Business model canvas perspective on big data applications. InBig Data, 2013 IEEE International Conference on(pp. 32-37). IEEE. Solomon, M. R. (2014).Consumer behavior: Buying, having, and being(Vol. 10). Upper Saddle River, NJ: Prentice Hall.Theodosiou, M., Katsikea, E. (2012). Antecedents and performance of electronic business adoption in the hotel industry.European Journal of Marketing,46(1/2), 258-283. Zeleti, F. A., Ojo, A., Curry, E. (2016). Exploring the economic value of open government data.Government Information Quarterly,33(3), 535-551