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Personal & Career Development Programme - Essay Example

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Personal & Career Development Programme Name Institution Organizations and institutions often require a business model for start up. A business model is usually the basic requirement from which any business would build itself from. A business model is often expected to be appropriate in order to extort the right benefit from the innovations it makes…
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Personal & Career Development Programme
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Download file to see previous pages A business model will hence serve as a link between business experts and technical experts to help them understand their roles. In addition, a business model is a significant determinant of making profits accrued from an innovation. Therefore, a business model often attracts a multitude of many business subjects like economics, strategy, operations, entrepreneurship, finance and marketing (Bradford, 2009). Moreover, the main reason why a given ordinary innovation along with a strong business model often tends to be more profitable compared to a leading innovation whose business model is a mediocre (Bolman 2004). Barlow (2007) explains that a business model has six components, which enables it to be effective, as well as efficient; these components include: Value proposition – this is a depiction of customer problems, products that deal with this problem, as well as the value of the product in view of the customer. Market segment – this is the target group of the customers, acknowledging that every market segments have their own distinct need. In most cases, the capability of an innovation is realized by targeting different market segment. Value chain structure – this is the company’s position, along with the value chain, and how the company intends to occupy the element of the principles it establishes in the chain. Revenue generation and margins – this involves the ways that income is generated like sales, subscription etc.; target profit margins, and the cost structure. Position in the value network – this is the identification of competitors, as well as any network results that can be used in delivering more value to customers. Competitive strategy – these entail ways in which the company will attempt to create a prolonged competitive advantage e.g. by striving to be different from other companies (Piro, 2000). An illustration with the help of a case study is the best way to describe ABC Corporation, along with its ABC Model 999 copier, in relation to its business model, products or services, potential development, as well as the customer base (Hoque 2000). The Model 999 often utilized the relativity of higher electro-photography process, a dry process that often dodges the utilization of using wet chemicals (Rainey, 2005). In its attempts to look for potential partners, the ABC Corporation became repeatedly turned down by many leading companies who perceived that technology they had did not have any future especially with the use of the business models (Bradford, 2009). Although the technology was exclusive to first copy systems, the cost of the system at that time was extremely high since it was six to seven times higher than other technologies (Webber, 2010). The issue of selling a given system at lower cost so as to be adopted by many companies then came into place and had to make a decision or else be faced out of the market. This challenge had to come with them also need to make huge profits at that time and to incur their expenses too. They also got suppliers that could supply them with supplies that were identical to theirs, but at cheaper cost (Brinckloe, 2001). ...Download file to see next pagesRead More
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