What are the key elements?
Like any recipe, a comprehensive business model can comprise
many potential ingredients. They address key questions of why,
what, whom and how:
- WHY the company exists
- The company's purpose
- Whom it exists to serve
- How it captures its essence in statements of mission
and vision
- WHAT its position is on fundamental issues
- What it believes constitutes success; what it measures
and communicates
- What its core principles, values, philosophies and culture
are
- Whom it considers are its key stakeholders, why these
relationships matter, and its obligations
- What it wants to be known for; the wider image it desires
- What its 'offering' is in terms of products and services;
what customers are buying
- Whether it believes in focus or diversification
- Whether it is adventurous or conservative (first mover,
early adopter, safe follower, etc.)
- How it defines the nature and source of its growth
- WHOM the business is aimed at
- Whom it considers to be the customer
- Whom it considers itself to be in competition with
- What markets it wants to be in
- Against which performers it benchmarks itself
- HOW it works at a strategic level
- How it attracts custom
- Where it concentrates its business
- How integrated it is in its value chain
- What its distribution channel is
- With whom it collaborates (e.g. business allies, supplier
'partners', community NGOs)
- How it treats its various stakeholders and prioritises
their call on the company
- How it positions its brand(s)
- How it exploits the electronic medium for e-business
and e-commerce
- How transparent it chooses to be
- What proportion of effort is devoted to financial planning
and tax avoidance
- How real or virtual the organisation is
- How it views and exploits its core competence(s); what
it does itself and what it outsources
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