Reinventing Your Business Model summary

Topics: Marketing, Business, Microeconomics Pages: 3 (844 words) Published: June 19, 2015
Reinventing Your Business Model
The article “Reinventing Your Business Model” talks about the importance of adapting effective business model in shaping the success of the business. He talks about the success and failure stories of different businesses where the thin line between the success and failure of firm had been effective business model which fits with the business. Firms like Apple, Wal-Mart are able to generate large profits and even reshape the definition of business just by innovating new business model. Even survey has shown that business CEO’s are preferring business model innovation rather than service or product innovation. Though there is growing importance being placed on business model, people are still unclear what a business model is or even how to make an effective business model. The article provides some insight on how to make an effective business model. There are three simple steps for that: know the opportunity to satisfy the customers, how to take advantage of the opportunity at profit, and see whether the existing model needs some remodeling or not. A business model is made of four elements which are more or less related to each other. The first of the four is customer value proposition, the total benefit that can be generated from the customer from his total life time. If a company aspires to be successful then it must find a way of delivering value to the customers better than the competitors. Creating value is essential but it is not the only the company needs to do; a company must create value to the customers making a profit in order to be successful. Company also need key resources like human resource, technology, equipment, etc. in order to deliver the value. Proper process must be established so that they are able to deliver the value in a cost efficient way. A company needs to find the unfulfilled needs in the market. What actually the customers wants is key to establishing the customer value proposition. A company...
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