Business Framework Model is a consistent response to how a business can create the value. This model describes the value logic of a firm in terms of how it creates & captures the customer value and can be concisely represented by an inter-related set of elements that address the customer, organizational architecture, value proposition and economics dimensions. The model provides a holistic view of a company that shows how an organization’s internal structure is managed and how it connects with its external structure/environment. The model fulfils several function including identifies a market segment & specifies the revenue generation mechanism, articulates the value proposition, defines the structure of value chain, estimates the cost structure & profit potential, details the revenue mechanisms, describes the position of any firm within the value network linking suppliers & clients and formulates a competitive strategy.
Business model of a firm consists of several elements, also recognized as components. Business framework model show and select these component as well as highlight the relations between these components. General Business Framework Model with several elements consisting of four key components: core strategy, value network, strategic resources, and customer interface. The core strategy defines a business mission that shows the products, markets of any company and it also explains how the firm or organization competes differently than its competitors. The value network shows the network of any company for instance partners, suppliers and coalitions. These components or networks also decomposed in different sub-elements, which are related to each other via several types of connections. Strategic resources include the core competencies including skills, knowledge and unique capabilities of the company. Beside that it also specifies the strategic assets of the firm and core process of the company. The last component, customer interface also has various functions like all the insights of the customer & interaction between the company and its customers and how the company can reach their clients.
Business Framework Models are useful tools that assist you analyze the business issues and structure your thinking. For established enterprises, this model is often a living framework, which is reviewed & adapted every year based on the changes with customers, employees, and market. For firms, launching new products or entering new markets, this model framework can help to get them off to the right start and make certain that early product & marketing decisions are tied back to the strategy.
Ken Research is a competitive service provider in India. We analyze the right Industry competitive positioning strategies for the key sectors. Competitive positioning refers to define how you will differentiate your offering & create value for your market. It is about statue out a spot in the aggressive landscape, putting venture in the ground, and winning the mind-share in the marketplace. A good positioning strategy is influenced by customer segments (group of prospects with similar desires & needs, market profile (competitors, size and stage of growth), competitive analysis (strengths & weaknesses, opportunities and threats in the landscape) and method to deliver the value (deliver the value to market at the highest level) etc.
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