Question.794 - Read the article and produce a summary of its main points. The 7 Elements of a Strong Business Model by Larry Alton (2015)
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Article Summary Armon Love St. Thomas University BUS 536: ENTREPRENEURSHIP February 5th, 2023 Article Summary Alton, L. (2015, April 22).?The 7 elements of a strong business model. Entrepreneur. Retrieved February 5, 2023, from https://www.entrepreneur.com/starting-a-business/the-7-elements-of-a-strong-business-model/243753 The article gives emphasis addressing the importance of building a strong?business model; however, before summarizing, it is important to comprehend what is a business model - it tends to?assist a business in order to establish?a corporation in targeting its consumer base. It aids in the development of advertising initiatives, income and expenditure projections, and the development of corporate strategies and customer bases. The business model is significant since it informs shareholders about the firm's comparative advantage and offers a broader understanding of how the company operates. A solid company plan generates cash and allows for potential development in addition to a? strong financial model?that gives the business a strategic advantage in the marketplace, resulting in high business earnings. With a brief understanding, the article tends to assess how the build a strong business model with seven primary steps, which are, determine the target demographic -Targeting a broad demographic will prevent the company from focusing on clients that actually require and desire their product or service, such as a broader scope could compromise on the actual target population. Rather, while developing the company strategy, focus on two or three specific customer personas by narrowing down on the potential client. Secondly, create business procedures - Prior to the company hitting production; it is important to?understand the tasks necessary to enable a business model to operate. Establish critical business operations by determining the fundamental feature of the company's offering initially. Thirdly,?keeping?track of important company resources - identifying critical business assets to guarantee the company strategy is sufficiently equipped to meet business demands.? The fourth?factor tends to be to create a compelling business offer -with the primary notion to place the firm on the top of the competition in terms of what makes their product or service unique and more sustainable in the competition!? Understanding precisely what the company delivers and how it is superior to rivals is the first step toward developing a solid value proposition - it tends to provide the firm possibility to bridge the gap between their objective, vision, mission, and target customer segment.?After they identify?value propositions, it is important to?connect them to product or service?delivery mechanisms to understand whether they continue to be valuable to consumers over time. The fifth factor is to identify crucial business partners - the article states that no firm can run well unless it has crucial partners who contribute to its capacity to serve clients. Select essential partners, such as suppliers, strategic partnerships, or advertising partners, when developing a company strategy. The sixth and seventh factors are to make a plan for generating demand trends and sustain them, while the last factor is to make room for creativity -? Creating a demand generation plan involves sketching out the consumer experience and recording the primary catalysts for their?engagement in a particular company, in accordance to it the firm needs to have appropriate scope to sustain in the target market.More Articles From Business Management
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