Power of Business Models Harvard Case Solution & Analysis

It has become fashionable to discuss business models, but there is a lot of confusion about what the business model and how they can be used. In fact, the business model can serve as a positive and important role in corporate governance. Although the authors offer a definition of "business model", nor, it seems generally accepted. This lack of consensus may, in particular, be attributed to the interest in the concept with a wide range of disciplines, each with a connection to the term. To help managers better understand the business model, this paper reviews existing literature and identifies and classifies components of business models that are listed there. The components were divided into four main categories: strategic decisions, the cost of the network, creating value and capturing value. The proposed definition of "business model" that integrates and synthesizes earlier work. On the basis of the proposed definition, it contrasts with the business model strategy. Also, discusses four issues related to business models. "Hide
by Scott M. Shafer, H. Jeff Smith, Jane Linder, Juyne Linger Source: Business Horizons 9 pages. Publication Date: May 15, 2005. Prod. #: BH120-PDF-ENG

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