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Effective Business Model - Coggle Diagram

- - - - why it exists and what its business
        model is supposed to accomplish.
        
        business concept blind spot
        prevents a firm from seeing an opportunity that might fit its business model
    - - the products and markets on which it will concentrate
      - The choice of product has an important
        impact on a firm’s business model
    - - differentiate itself from its competitors in some way that is important to its customers and is not easy to copy
        
        cost leadership strategy
        strive to have the lowest costs in the industry, relative to competitors’ costs, and typically attract customers by offering them a low, if not the lowest, price for the products they sell.
        
        differentiation strategy
        compete on the basis of providing unique or different products, typically on the basis of quality, service, timeliness, or some other dimension that is important to customers.
  - - - meaning
        a resource or capability that serves as a source of
        a firm’s competitive advantage over its rivals
      - unique skill or capability that transcends products or markets, makes a significant contribution to the customer’s perceived benefit, and is difficult to imitate
      - resource leverage
        process of adapting a company’s core competencies to exploit new opportunities
    - - meaning
        anything rare and valuable that a firm owns
        (plant and equipment, location, brands, patents, customer data, a highly qualified staff, and distinctive partnerships)
      - Sustainable competitive advantage
        achieved by implementing a value-creating strategy
        that is unique and not easy to imitate
  - - - meaning
        a company that provides parts or
        services to another company
      - supply chain
        the network of all the companies that participate in the production of a product, from the acquisition of
        raw materials to the final sale
      - supply chain management
        the coordination of the flow of all information, money & material that moves through a product’s supply chain
    - - Joint venture
        
        An entity created by two or more firms pooling a portion of their resources to create a separate, jointly owned organization
      - Network
        
        A hub-and-wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms
      - Consortia
        
        A group of organizations with similar needs that band together to create a new entity to address those needs
      - Strategic alliance
        
        An arrangement between two or more firms that establishes an exchange relationship but has no joint ownership involved
      - Trade associations
        
        Organizations (typically nonprofit) that are formed by firms in the same industry to collect & disseminate trade information, offer legal and technical advice, furnish industry-related training & provide a platform for collective lobbying
    - - insourcing
        takes place when a service provider comes inside a partner’s
        facilities and helps the partner both design and manage its supply chain
  - - - the limited group of individuals or businesses
        that it goes after or tries to appeal to
    - - the way a firm’s product or service “goes to market,” or how it reaches its customers
    - - vary, depending on a firm’s target market and its pricing philosophy