Business Modeling And Strategies

So, this past week we covered the last of business models and strategic business models. Business modeling is a way for a business to figure out what their core business is and strategies for running their business. We first covered the business model canvas. This model layouts a revenue side and cost side, then details out the core portions on either side. On the cost side you have: partners, activities and resources. While on the revenue side: customer relationships, customer segments and channels. Examples of can be this model can be found here – architecture firm and consulting business. The business model canvas is great for figuring out what a business is about and how it works but it doesn’t take into consideration outside forces such as competition that is where Strategic Business Models come in. (Que the horns)

There are a number of strategy models – porter’s 5 forces analysis, SWOT analysis and PEST to name a few. Some can used to do a critical analysis of an industry to see if you should go into that industry verses another, or they can be used to specifically to analyze a business’ direct competition. Some of the factors looked at in these models are threat of substitution, ease of new competitors, supply and buyer persuasion/power, strengths and weakness in and outside of company, and opportunities. In the following post, I will have a small presentation on a business model.