diagram for business model
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wk_sht_2.docxWork sheet #2
Learning Task #3: Disruptive Business Models
Discussion Question #1: Briefly discuss the business model and key elements of the disruptive businesses identified.
A business model is the plan implemented by a company in order to make more profits than its competitors in a highly competitive industry. The model includes the company’s components and functions of the business, and the revenue it generates.
Discussion Question #2: Be sure to identify at least two distinctive competencies of the disruptive companies
They are:
· Ability to create a timely and accurate “one-number plan” that drives all the business functions and enables planning initial assortment at the store level.
· To develop a synchronized supply chain with the ability to, react to trends and real-time market opportunities.
· To identify the recent fashion trends at the store level in real-time to determine how best to maximize sell-through
Discussion Question #3: Discuss the key competitive advantage(s) of the disruptive companies?
The competitive advantage of the disruptive companies is that they are able to meet the clients’ needs when the time is right. They are flexible and can manipulate technology to suite the market trend.
1. There is a very good description of disruptive technology in this Wikipedia post - http://en.wikipedia.org/wiki/Disruptive_technology. Please don’t confuse disruptive technology with disruptive business models.
2. Clayton Christensen of Harvard first adopted this theory. His groundbreaking book, The Innovators Dilemma, defines the notion of disruptive business models quite succinctly. Search Google on this topic and find a rich array of information pertaining to this topic.
3. Neusa Hirota wrote this informative article on disruptive innovation . . . http://www.12manage.com/methods_christensen_disruptive_innovation.html.
4. Here is a Wired article on Dell as a disrupter . . . http://www.wired.com/wired/archive/10.07/dell.html.
5. MITWorld has this video of Clayton Christensen describing disruptive innovation in a 36 minute lecture at MIT. If the flash video below does not work you can click on this link to view it from MITWorld's web site - http://mitworld.mit.edu/video/108. Well worth a watch.
