Strategic Business Modeling
- Tags:
- Business Model,
- Business Operations,
- Harvard Business Review,
- Management,
- Modeling,
- Research & Development,
- Strategy
- Source:
- Harvard Business Review
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Overview: This HBR OnPoint collection shows why strategic business modeling is important. Wal-Mart founder Sam Walton created its success by understanding the difference between business models and strategies--and the necessity for both. Though he built Wal-Mart on the same business model as Kmart, he devised a unique strategy: Putting big stores in small towns that competitors ignored and offering branded goods at discount prices. Business models and strategies are different. The business model tells a logical story about who the customers are, how to make money, and how to deliver value. It aligns employees behind firm's mission and lets one test and revise assumptions about customers. After aligning business model and strategy, one should communicate them to employees through strategic principle. Together, these elements help employees make smart trade-offs, identify promising markets, and seize fleeting opportunities.
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Format: PDF | Date: May 2002 | Pages: 44
