Question

File Types doc and docx Available Jan 28 at 4:30pm- Feb 9 at 8am 12 days Please answers the following questions: . What is the difference between a business model and a customer value proposition? e Illustrate the difference with an example (any publicly-listed company). . What is the generic competitive strategy of the company in your example. That is, does it compete on cost, differentiation, use a broad or niche market strategy? Clearly explain why you think so. . How does the competitive strategy relate to the company's business model OR customer value proposition? The submission should be 500 words minimum. Please provide a formal write-up (so proofread and edit your assignment) in the following format: Times New Roman (size 12), single-spaced Submit as a word doc/x only via the submission page. Please do not send me the assignment in an email The assignment is worth 5 grade points. It is due by Sunday. February 3rd (11:59pm).Overdue submissions will carry penalties (assignments are permanently closed once I start grading them)

Answer 1

Difference between a business model and a customer value proposition-

It’s the difference between your product or service and the next best alternative. Sometimes, the other alternative is “nothing”; in other words, your product or service cannot be accomplished any other way.

More likely, there is a manual approach which you’ve automated, or a product from a competitor which serves as the benchmark.

Look at this from your customers’ perspective. Why your product or service vs what they do now? They need a compelling reason for change to what you do. If your product or service is not important to what they do, or does not eliminate a pain point, or does not benefit them in some way, then you have a weak value proposition.

Weak value propositions are sometimes miss-identified as “sales or marketing problems”. Dissatisfaction with sales teams, marketing efforts, messaging may not be the underlying reason for lack of success in a business model.

Competitive strategy of the company/business-

There are three basic competitive (differentiation) strategies:

1. Lower Price - resulting from operational efficiencies, buyer clout, or other cost advantage that allows you to offer a lower price while maintaining some level of profitability. WalMart is a great example of this.

2. Product leadership - resulting from R&D, innovation, unique processes or a focus on a particular niche that allows you to offer a superior product than competitors. Apple is a great example of this.

3. Service - resulting from culture, processes and other investments that allow you to offer better service, customization, or personalization that is valued by your customers. Ritz Carlton is a great example of this.

Of course, these are general ‘basic competitive strategies’ as were asked. There are an infinite number of potential strategies that depend on industry dynamics and the specific situation of a company in a specific point in time.

How does the competitive strategy relate to the company's business model-

What comes first, a business model or strategy?

This smells like a homework assignment, which I usually won't answer. But, on the off chance this is legitimate here's my two cents:

Strategy comes first, but they are often developed together.

Strategy determines the business vision and mission, and the direction you are going :

• What business are we in?

• What is our competitive advantage?

• Where will we operate and compete?

• Who is our ideal customer?

• What type of company will we be?

• What are the business goals?

• How fast will we grow, how much do we want to grow?

All of this informs the business plan and model , which outlines how you will execute the strategy.

The business model is the operational component of the strategy:

• How will you develop and position the product or service?

• How will you price the product/service

• How will you reach the customer?

• How many employees?

• Estimated costs and sales forecasts

Think of the process like planning a sailing trip: You don't build the boat first, and then decide you want to sail around the world: You select and build the boat based on the mission goals.

Your strategy would determine that you want to sail around the world (versus regional sailing), additional goals (break world record), and other constraints (solo, or team). Once that is determined you can plan the type and size of the boat, budget, food/supplies, support team, communications, route, and required visas.

Your model and plan needs to be flexible to allow for unknowns. If you discover that startegy is unworkable in the planning process, then you might go back and adjust the startegy. The two work together, but you have to have a direction before you have a plan of how to get there.