FG 2 WEEK 7

Summary

This presentation by the FG2 group explores the significance of business models and innovation in maintaining competitive advantage. It defines a business model as a framework for customer interaction and value creation, highlighting key components such as resources and partnerships. The importance of innovation is emphasized, illustrating its role in differentiation and market adaptation. The discussion includes a case study of Webh Club, showcasing the pitfalls of unclear business models, and delves into core competencies and supply chain management as vital elements for success. The presentation concludes by addressing the customer interface's impact on business dynamics.

Takeaways

• 😀 A clear business model is essential for sustaining a company's operations and ensuring its profitability.
• 📈 The four main components of a business model are resources, partners, customers, and strategy.
• 💡 Innovation is crucial for business sustainability, helping companies differentiate from competitors and adapt to market changes.
• 🔄 An effective business model allows for systematic evaluation of business feasibility and profitability.
• 🌐 The importance of stakeholder integration is highlighted, with suppliers, partners, customers, employees, and investors all playing key roles.
• 📉 The case of Webh Club illustrates the dangers of a poorly defined business model, leading to market failure.
• 🏆 Core competencies are unique capabilities that provide a competitive advantage and should align with customer needs.
• 🔍 Supply chain management is critical for optimizing the flow of goods, information, and finances throughout production and distribution.
• 🤝 Flexibility in a company's mission and a willingness to adapt to market changes are vital for long-term success.
• 🔍 The importance of market research and customer feedback is emphasized to avoid misinterpreting customer needs and preferences.

Q & A

What are the four main components of a business model?

The four main components of a business model are resources, partners, consumers, and strategy.

What is the significance of innovation in a business model?

Innovation is crucial for creating new value, differentiating from competitors, and adapting to market changes, thereby ensuring the sustainability of the business.

How does a clear business model contribute to feasibility analysis?

A clear business model acts as an extension of feasibility analysis, continuously questioning whether the business is sensible and profitable, allowing for systematic evaluation.

What are the five participants in a business network according to the script?

The five participants in a business network are suppliers, business partners, customers, employees, and investors.

Can you provide an example of a business failure due to a lack of a clear business model?

An example is WebH Club, launched by J. Walker, which failed because its business model was unclear and did not effectively address customer needs.

What is the concept of 'value chain' in business?

The value chain refers to a series of activities performed by a company to produce a product or service that delivers value to customers. Each activity contributes to value creation and can provide a competitive advantage.

What are the key activities involved in supply chain management (SCM)?

The key activities in SCM include procurement, production planning, distribution management, demand management, and information management.

What are the principles of 'Just in Time' manufacturing?

The principles of Just in Time manufacturing focus on reducing inventory by producing and delivering products only as needed, improving efficiency, and eliminating waste in the production process.

What are the two fatal weaknesses in business models mentioned in the script?

The two fatal weaknesses are the inability to achieve profitability and the misreading of customer needs, which can lead to market losses and product misalignment.

What is the role of customer interface in a business model?

The customer interface defines how a company interacts with its customers, including target market identification, fulfillment and support services, and pricing structure, impacting the overall business model and development.