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The Business Model

Thank you for your mails and comments. And apologize to those who complained that they were missing the updates. I was settling into a new schedule, hence the gap.

As I work my own schedule through, I thought it would be interested in what I've been immersed in doing in the last fortnight. Very interestingly, its just up the alley for the entrepreneur series of this blog. You guessed it. Business Model Generation.

Perhaps the most thrown around phrase in the strategic management aisles. It is basically the method by which you determine the economic viability of the business; whether it creates a sustainable model or whether it's mission is to create money.

Let us elucidate some basic elements of what make business model a sound proposition.

a. Does your business model address a gap in the market? The gap may be a gaping requirement or a small simple process that increases the efficiency and ease with with a user conducts his life or business; as long as the gap is addressed in a simplistic model, it will justify its existence. And will be used.

b. Will the customer adopt your proposition? Business model changes in Netflix backfired and led to a huge crash in the value of the company when the customers refused to adopt the changes. Winning customers is an expensive proposition. Keeping them interested and using your product or services is more important for the sustenance of a business model.

c. Disruptive and engaging market differentiation and pricing models. Addressing customer pain points and using financial modelling with differentiation is a method adopted by many successful cloud and SaaS business models in the market currently.

d. Differentiating business models. Ebay and Amazon are path breaking business models which led the way to a new ecommerce economy. Whats next in the space? Where can disruption occur? Here are some leading questions to the new disruptions. Any ideas?

Next on the block- Online and Offline business models.

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