Business Model for Purpose and Organizational Goal - myassignmenthelp

Question: Write about theBusiness Model for Purpose and Organizational Goal. Answer: Business model can be defined as the conceptual structure that helps the organization to achieve its mission, purpose and organizational goal. Business models are designed in order to create the value and distribute it in a profitable way. The business models acts in between the two poles of classification and taxonomy (Baden-Fuller Morgan, 2010). Zott and Amit oppose the idea of a general business model, as each business works in a very different individual way. The business models classificatory function depends on the scale models and short-hand definitions (Zott Amit, 2010). In an effective business model the role model and scale model come together and the internet based Google business model is one such example. The concept of business model is getting huge attention because of the internet revolution. Many scholars use the term in order to define as how the internet transformed the traditional business models (Laudon Traver, 2013). The emergence of e-commerce has motivated the scholars and business professionals examine the business models of their organizations. Figure: Business Model Formation ( Source: Made by author) A coherent framework is achieved through the business model which helps the organization to gain financial output. Therefore business model can be described as an abstract model that connects business processes and strategies. Organizations often confuse business model with revenue model (DaSilva Trkman, 2014). Revenue model is a part of the business model which only describes the volume of the revenue, its sources and distribution. Carl Jung developed the idea of business model archetype. He describes archetypes is something which possess certain qualities that others follow and inherit to develop their own. There are business models with fundamental business qualities that provides others good structural base for effective business (Zott, Amit, 2010). The electronic communication has changed the business model significantly. The information technology is at the core of e commerce. Before the emergence of e-commerce the organizations could not maintain close relationship with suppliers as the system was stand alone and high cost based. The e commerce technologies provided huge capabilities to the companies with connectivity, interactivity, openness and transparency which led the company in direct exchange of information among organizations (Barney Ray, 2015). The supplier integration resulted in customer satisfaction and influenced the business model overall. Many enterprises utilized the e commerce opportunity to develop new business models. Through innovate new business models the companies put substantial efforts in generate high revenue. The new business model helps them to improve the product and service quality; however the innovation of new business model requires ample time, research and huge investment. A survey by EIU or Economist Intelligence unit highlights that Majority of the companies now prefer innovative business models over new service or products (Bashir Verma, 2017). They believe that the new model is more effective than the others to give the company more competitive advantages. Another survey by IBM also demonstrated that the companies that went ahead in the competitive race than their competitors in last few years had concentrated more on developing their business models. The business model has four aspects of customer segment, management infrastructure, value proposition and financial aspects. There are other nine aspects that are interlinked with the four mention aspects that contribute to the structure of business model. Few of the important blocks can be identified as revenue streams, key activities and resources and customer relationships. Adapting anew value network model could be helpful to renovate the business model of the company (Stabell Fjeldstad, 1998). The company who has been adapting a new business model at an early stage utilizes the First mover advantages (Markide Sosa, 2013). The late adapters will create competitive resistance for the other company but the adapted business model will help them to overcome that and gain advantage of better sustainability as a first mover. According to Porter the two most adapted strategies to deal with the low cost competitors challenges are differentiation based business model and focus based business model. The differentiation based business model puts a lot of stress on new technologies to fulfill the customers growing need. By adapting the latest technology this business model helps them to connect with other businesses and customers all over the world. This way differentiation based business model helps them to gain the consumer surplus or the maximum value (Williamson, 2010). Focus based business model on the other hand only focuses on a specific niche market. This model practices a safe financial practice where interested customers pay premium value. However cost innovation has become a threat for both these business models. The competitors are offering high technological services at a low price and others are providing niche products to mass market. Larry Page and Sergey Brin founded search engine has grown to be more than just search engine that also deals with desktop applications, social networking, operating system mobiles, and other online services (Google.com, 2017). Goggle is a successful business model which generates billions every year. Googles business model is very creative and effective in a sense that the every customers various needs satisfied by various services of Google. There are niche customers who pay premium cost for special services like advanced mail service, cloud services and Google earth features. On the other hand Google offers lot of free services to its customers including search engine, map that holds a stable customer base for the company. A lot of advertisements are offered by the company to diverse range of customers so business partners invest on the company to attract more customers. Goggle gets in agreement with the mobile OEMs to let the customers downloading their apps. Then the company is also engaging in a lot of offline activities like smart glasses to humanoid robots. Google is a company primarily based on advanced technology. Everyday that is incorporating newer technologies to improve their business model. In a way the polyhedral business model of goggle is working with great success (Retolaza, San-Jose Ruz-Roquei, 2016). Therefore the value propositions practiced by the company are two types. Googles one value proposition is for webmasters who can monetize their services and earn money from the Google provided platform like Ad sense. The other value proposition is for the direct advertisers. Goggles business model has pioneered in successfully interpreting big data in every day practice. The company utilizes the big data from Webindex to equal the queries with desired results (Zicari, 2014). Their monetized platform working on capturing the data from the consumers as they use the search engine. Googles data driven business model in this way is ensuring maximum profit for the company. Various business models have been adapted by many companies; some of them are implementing innovative strategies in the business models. Most of them are well planned and executed and offering great outcomes. The changes in the technology have driven the changes in the models so more technological advancements will keep transforming the business models in future. Reference Baden-Fuller, C., Morgan, M. S. (2010). Business models as models.Long range planning,43(2), 156-171. Barney, J. Ray, Gautam. (2015). How information technology resources can provide a competitive advantage in customer service.Planning for Information Systems,3(2), pp.444-460. Bashir, M., Verma, R. (2017). Why Business Model Innovation Is the New Competitive Advantage.IUP Journal of Business Strategy,14(1), 7. Coleman, A. (2016).Is Google's model of the creative workplace the future of the office?.the Guardian. Retrieved 27 August 2017, from https://www.theguardian.com/careers/2016/feb/11/is-googles-model-of-the-creative-workplace-the-future-of-the-office DaSilva, C. M., Trkman, P. (2014). 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