1) A business model describes the rationale of how an organization creates, delivers and Captures value. It came from an English expression who designated the Description of the economic model of an activity (a company). A business model Precisely describes the positioning, the objectives, the tactics, resources, Rules, principles and values of a company.
- Business Model has become a major source of competitive advantage
- it Becomes more and more difficult to differentiate on services and products Alone
- They Are decisive for a company’s long-term success.
- Value creation
- Access to new markets
Business Model à Value Creation à Competitive Advantage à Access to New markets and new consumers
2)Identity Trap: An organization’s identity can become a trap when it so constrains Strategic options that the organization cannot cope effectively with a changing Environment.
The second Barrier is manifested by the inability within the confines of a certain BM to Understand the value potential in technologies and ideas that do not fit with The current BM
3)According to Giesen, Berman, Bell and Blitz (2007), there are:
(1) Industry model innovation, which consists of innovating The industry value chain by moving into new industries, redefining existing Industries, our creating entirely new one;
(2) revenue model innovation, which represent Innovation in the way revenues are generated, for example through Reconfiguration of the product services value mix or new pricing models;
(3) Enterprise model innovation, changing the role a firm plays in the value Chain, which can involve changes into extended enterprise and networks with Employees, suppliers, customers and others, including capability/asset Configurations.