“Why Business Models Matter”
Student Name: Khairil bin Sarian
Title: Why Business Models Matter
Author: Joan Magretta
Year of Article: 2002
This article discusses about the business model and strategy that popularly being used in the organization as a tool to stream a good profit to their business. The concept was introduced and being used during the beginning of internet utilization by all organization. It is not easy to have this kind of thinking to create a business model and strategy which is two different concept needed to be applied. By looking at this concept, business model required to identify your customer and need to plan how ...view middle of the document...
Both look very similar in term of understanding the concept but the result is quite different. Before start on any kind of business, organizations need a set of strategy to identify their goal and aim but without a good business model it may affect the whole planning.
Business model is a system that tells a logical story by defining who your customers are, what the value they have and how you may make a profit by providing a customer service to them, while a strategy is concept that every organization has to identify to differentiated and doing better with the others whenever they start doing a business. Well constructed example has been given in this article regarding both concepts that influence each of company.
Review on Concepts
I would agree with this article that business model have evoked a new trending by all organization when dealing in the business world. In this instance, the concept that being used may look similar but the name can vary as they are not being defined universally. Internet, media and television with business world can’t be separated in the era of fast moving. Having a business by creating good model offer well revenue predominantly as a result of being able to offer highly targeted consumer on the market. Telling a good story to the consumer and making something that satisfies people is one of the techniques that Magretta give in this article. The example is like the American Express traveler’s checks that gave travelers new peace of mind. Selling something in innovative ways may reflect on the customer perception compare to the normal ways. For example in this article like the Eastern Exclusives distributes restaurant discount coupon book in bulk to university housing department, which distribute them for free to dorms. The business model may look very success in all aspect but irony is the think tank...