Marketing Model Of A Business Model

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A business model is a plan used by a business to generate profits while satisfying customers’ needs, managing competitors, and structuring its relationships. Most business models can be illustrated diagrammatically as they show a detailed approach that the company intends to follow to achieve its objectives. There is no standard for structuring a business model, and a firm is free to utilize whichever approach it deems fit to achieve its targets. However, business model innovation is necessary to ensure that the company has an edge over competitors who will also have their own models. A business model is constructed following a feasibility analysis of a firm’s target market. However, the model is created before the business plan is completed. Having conducted a feasibility analysis and established that the product or service it intends to launch is feasible, the business model aids the company to come up with a partnership model, a customer interface, distinctive resources, and an approach to create value (Kaiser 2008). In light of this factor, it is evident that any business that seeks to achieve profitability requires a business model. This paper seeks to analyze the importance of business models to businesses today. Factors that ought to be considered when developing a viable business model will be identified. The discussion will include examples of business models that have worked to the advantage of renowned brands.

Importance of a Business Model A business model is

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