RQ 1
“Business models are typically devised before launching new businesses,
providing a roadmap for operations as well as a document for raising venture
capital, and a tool for addressing the basic question of how an enterprise will make
money” (Burton, 2011, p. 169).Business models can also be utilized by an existing
organization in order to assist company leadership by analyzing any potential
changes in the organization’s strategy.Business models can be utilized in various
forumsrangingfromasmallconveniencestoreallthewayuptoalargesupermarket chain
store.There are six common themes of a business model, which are revenue
generating,valuechainstructure,theorganization’smarketsegment,andpositionin the
value network, value proposition, and competitive strategy.
Every business model will include information regarding the organization,
the product the organization is creating in order to solve the consumer’s problem,
andhowtheorganizationcreatesordeliverstheproduct.“Thebusinessmodelspells-
outhowacompanymakesmoneybyspecifyingwhereitispositionedinthevaluechain” (Rappa,
2013, para. 2).The value proposition is what the products perceived advantage is to
the consumer’s need.The target market segment is another component to the
business model.The target market segment is the customers that the product or
service will bring value to.How the organization utilizes resources, activities, and
personnel is another component to the business model.The organizations revenue
streams, how the organization makes a profit, will also be included within the
business model.The business model will also contain any
agreementsbetweentheorganization,andanyoutsideorganizationsinorderto create,
and market the product.
RQ2
“Abusiness model describes the rationale of how an organization creates,
delivers, and captures value” (Osterwalder, 2010, p. 14).According to Business Model
Generation, a business model should be described through nine building blocks which
coverfourareasofbusiness:customers,offer,infrastructure,andfinancialviability.The nine
building blocks are customer segments, value propositions, channels, customer
relationships, revenue streams, key resources, key activities, key partnerships, and cost
structure.
The customer segment block relates to what groups the organization is attempt to
serve.Avalue proposition is the description of the products that bring value to the
customer segment.Important questions that should be asked are what value is delivered
to the consumer, what problem is the organization solving, and what needs are being
satisfied.The channels building block is how an organization communicates with the
customer segments.The customer relationships block described the types of relationships
theorganization has with thecustomer segments.Thecash an organization
receivesfromtheconsumersistherevenuestreamsbuildingblock.Whichkeyassetsare
required to make the organization operate is the key resources building block.The step
that the organization takes in order to make the organization operate is the key activities
block.The key partnership block is the network of partners that the organization has.
Finally,thecoststructureisanycoststheorganizationtakesoninordertooperatethe business
model.
RQ3
Regardless of complexity, most approaches to business modeling share
severalcommoncharacteristicssuchasabusinessmodelneedingatleasttoaddress the
customer value proposition (Burton, 2011, p. 170).A customer value proposition is
how an organization’s service will fix a need or solve a problem. A value proposition
is typically the product itself, however digital products, services, property, and
innovations are also considered value propositions.How the organization
providesaunique, convenient, or newproductorserviceareexamples of a value
proposition.The individuals receiving the value does not have to be only consumers,
but can also be suppliers, partners, competitors, research institutions, government,
or local communities.An organization does not necessarily only need to tie their
value proposition to their source of revenue.For example, Google receives over 98%
of their value from consumers, however users of the website
receivealargeamountofvaluepropositionseventhoughtheyreceivetheservicefor free.
“Avalue proposition is a positioning statement that explains what benefit you
provide for who and how you do it uniquely well” (Skok, 2013, para. 4).The problem
shouldfirstbedefined.Theorganizationshouldfindoutiftheproblemisworkable,and if the
solution can fix an issue that if no actions are taken will snowball into a greater
issue.It should also be determined whether or not government or a regulatory agency
mandatestheissue.Theorganizationshouldalsoevaluateifthesolutionisauniqueand
compelling answer to an issue.It should finally determine who or what the product or
servicebrings value to, whatindividuals aresatisfied/dissatisfied with theproduct, what the
new product is, how the product is unlike other products, and what the problem- solving
ability of the product or service is.
RQ4
“Moving to a new business model will not provide a significant sustainable
advantage if many competitors are all moving to that business model. The key for a
competitiveadvantageistomovetoarelativelyuniquebusinessmodel”(Yaziji,2013,p.
3).Brainstorming can be utilized as individuals can come together as a team, and
collaborate on how to address a problem, and any unique ways in which the group can
solve the problem.Brainstorming can help an organization generate a business plan or
idea from nothing, and to inexpensively solve an organization’s issues.“What if” is
another way to create new idea by asking what if questions during a brainstorming
session with a group.
“What if questions are merely starting points? They challenge us to discover the
business model that could make their suppositions work” (Osterwalder, 2010, p. 146).
Forexample,leadershipatanautomotivedealershipmayaskwhatwouldhappenifthey started
purchasing their repair parts from a foreign manufacturer instead of a domestic
manufacturer.“Whatif”questionscanbreakupthemonotonyandconstraintswithinan
organization by asking hypothetical questions, and can assist the organization by
challenging the way that they have conducted business in the past.“What if” questions
shouldchallengetheorganizationsthinking,andshouldbethoughtofasbeingdifficultto
integrate within the firm.
