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Topic 4: Re-Intepreting Strategy (Business Model Environment (Firms…
Topic 4: Re-Intepreting Strategy
Business Model Environment
Firms normally design their BM around 4 main areas:
Market forces
Industry forces
Key trends
Macroeconomic forces
Evaluating the BM
Amazon.com
Strengths
VP - large product range through online retail shop
CR - economies of scope
CS - large reach
KP - fulfillment excellency through logistic partners and affliates
C$ - cost efficiency
KA - IT infra excellency
Weaknesses
C$ - relatively capital sensitive
R$ - low margins
VP - relatively low value items
Opportunities
2 new CS that are untapped as to proposed offer (CS, VP)
New R$ with higher margins than retail
Synergies in the use of activities and resources for new offers (KA & KR)
Threats
Margins threatened by technology
Disruption of supply on certain resources
Availability of substitute offer from competitors
Collaboration of partners with competitors