Business Models for Sustainable Technologies-Samples for Students

Question: Discuss about the Concept of Business Model. Answer: Introduction: The clear and concise way of picturing how a particular business operates is called a business model. According to Desyllas and Sako, (2013), the purpose of the business model is to provide the value to the customers and create a stronger proposition in the market where many other competitors are present. A business model is the means by which the value proposition of the business is translated into the potential in order to achieve rapid growth of revenue and earn huge profitability. The essay discusses on the importance of business model for a business. The essay shall support the claims with a number of examples of companies that have adopted the most suitable business model in their business. The concept of business model: As stated by Carayannis, Sindakis and Walter, (2015), the concept of the business model is to concisely describe the function of the business considering the overall market landscape along with the target group of customers. The idea is to understand the strategies of the business more easily that would eventually help to find out the strengths and weaknesses of the business model and help to find out better strategies for the particular company (Zott, Amit Massa 2011). There are 7 types of business archetypes that are found in a business model. E-archetype is related to the e-commerce activities or online activities that has become a considerable part of the business. In recent time, every company is going online in order to provide easy access to the consumers to sort and purchase product according to their needs and requirement. E-business model archetype: As pointed out by Maglio and Spohrer, (2013), technological inventions have provided better opportunities to the business organisations in terms of manufacturing as well as commercial activities. In fact, it has become important for the companies to adapt to these changes in order to survive in the competitive market where they operate. Keeping this concern into consideration, the companies are coming up with such ventures that would satisfy the need of the business model and would help the company to perform better in the business. In order to match with the changing market scenario, it is also expected to make changes in the business model. No problem in the business model is actually a problem. In addition to this, business innovation is also another aspect that can be considered as a powerful tool that is implemented in order to improve the business activities. In this respect, Schneider and Spieth, (2013) commented that technology is indeed a vital component that has geared up t he business of an organisation. While delineating the business, the managers identify better opportunities in terms of technology that help them to overcome the challenges faced by the organisation. Fig: E-business model archetype (Source: Maglio Spohrer, 2013) Business model as activity system: The activity system of the business model is termed as the way a particular company is centred towards its focal operation. The idea is to find out the business opportunities available in the market and make use of it; this might also include the business partners and the vendors or the customers of the organisation (Zott, Amit Massa 2011). There is no doubt that the activities of the firm can even span outside the boundaries of the nation but their independent organisational activities always remain core to their focal firm. The above mentioned models are actively used for the sake of improving the business of the organisation (Bocken et al., 2014). For example, considering the demand of a particular product in the market, the organisation can come up with better pricing strategy that would automatically reduce the bargaining power of the consumers (Zott, Amit Massa 2011). Fig: Business model as activity system (Source: Bocken et al., 2014) Business model as cost/revenue archetype: The revenue system of the business model is equally important while considering the profitability of the organisation (Zott Amit, 2017). The revenue model plays a vital role in the value appropriation. The aim of every organisation is to increase the profitability of the firm that would be possible with the increase in the revenue of the firm. This is largely related to the pricing strategy as adopted by an organisation. In the research, Gerasymenko, Clercq and Sapienza, (2015) identified that the business model of an organisation is also based on the bargaining power of the suppliers and the consumers. The idea is to gear towards total value creation for all the parties of the business. Greater the total; more will be the bargaining power of the consumers. Therefore, it is important to create greater value of the particular business in order to create a balance in the bargaining power of the consumers and the suppliers. Business model is also built on product capabilities, partners hip, the channels of distribution, cost distribution and even the customer relationship (Bocken et al., 2014). These perspectives of the business cannot be considered to be static and is in fact found to change often. Keeping similar approach to these changes, it is required to make changes in the business models accordingly (Kastalli Van Looy, 2013). Fig: Business model as cost/revenue archetype (Source: Kastalli Van Looy, 2013) Role of global managers in setting business model: If the application of business model in solving problems and issues of the organisation is considered, it has been pointed out by Brea?Sols, Casadesus?Masanell and Grifell?Tatj, (2015), that an effective business model is expected to adopt changes depending on the situation that the particular organisation faces. Thus, it can be clearly said the changes in the business model is inevitable and mandatory to a certain extent. It should fall under the responsibility of the global managers to consider the importance of the business model and make changes in the business whenever and wherever required (Bohnsack, Pinkse Kolk, 2014). Considering the global approach of the business, the managers also need to set the goals and objectives of the business venture depending on the particular business area where it operates and make changes in the business model. Keep an eye on the market trend and competition is what actually helps the organisation to survive in the world of business (DaSilva T rkman, 2014). Example of successful business model: An example of a successful business model can be stated here. The business model of Google is innovative and unique at the same time. The company has come up with the business model that actually does not sell a particular product or service but it provides space in an online platform and makes it available to the marketers (Zott, Amit Massa 2011). This space can be used by the marketers as well as the companies to endorse their respective products or service. The cost that the users have to pay is also minimal in respect to other forms of market and it provides the opportunity to reach out people far and beyond the boundaries where a particular organisation operates (Bohnsack, Pinkse Kolk, 2014). Thus, the business model of Google can be easily considered as one of the most successful business models that are based on certain goals and objectives and it is deployed effectively to achieve the organisational goals. Fig: Business model of Google (Source: Bohnsack, Pinkse Kolk, 2014) Conclusion: The discussion based on the business model and its various aspects have leaded to the conclusion that the success of an organisation is largely depended on the business model based on which the business is set. This model is constructed only after considering certain aspects of the business like the market demand and the bargaining power of the suppliers and the buyers. Technology and innovations have a vital role to play in shaping the business model. In the age if globalisation and increased competition it is indeed important to come up with a meaningful business model that would help the company to survive in the market. 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