A.
Core Strategy
The first component of business model
is the core strategy, which describes how a firm competes relative to its
competitors. The following are the essential components of a firm’s core
strategy.
a. Mission
Statement-A firm’s mission, or mission statement, describes why it exists
and what its business model is supposed to accomplish.
b.
Product/Market Scope-A company’s product/market scope defines the
products and markets on which it will concentrate.
c Basis
for Differentiation-It is important that a new venture differentiate
itself from its competitors in some way that is important to its customers. If
a new firm’s products or services aren’t different from those of its
competitors, why should anyone try them?
B.
Strategic Resources
A firm is not able to implement a
strategy without resources, so the resources a firm has affects its business
model. The two most important strategic resources are discussed below-
a. Core
Competencies-core competency is a resource or capability that serves as a source
of a firm’s competitive advantage over its rivals.
b.
Strategic assets- Strategic assets are anything rare and
valuable that a firm owns
C.
Partnership network
All the involved parties in the value
chain, altogether called partnership network
a. Suppliers-A
supplier (or a vendor) is a company that provides parts or services to another
company.
Retailers, Distributor
D.
Customer Interface
How a firm interacts with its
customer, it is the fourth component of a business model. The type of customer interaction
depends on how a firm chooses to compete
Target
market-A firm’s target market is the limited group of individuals or businesses
that it goes after or tries to appeal the pricing structure for fulfillment and
support
