Define relationship b/w company''s strategy & business model, Strategic Management

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Relationship Between A Company's Strategy & Its Business Model

1.   Closely associated to the idea of strategy is the model of a company's business model.

CORE CONCEPT: - A company's business model contract with whether the revenue-cost-profit economics of its strategy illustrate the practicability of the business enterprise as a whole.

 2.  A company's business model sets for the economic logic of how an enterprise's strategy can send value to consumers at a price & rate that yields acceptable profitability.

3.   A company's business model is management's storyline for how & why the company's product offerings & spirited approaches will produce a revenue stream & have an attached cost structure that produces attractive earnings & return on investment.

4.   The notion of a company's business model is consequently more scarcely focused than the idea of a company's business strategy. A company's strategy relates mostly to its competitive initiatives & business approaches while the business model zero in on whether the revenues & costs flowing from the strategy reveal business capability

 


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