Business Framework Model is a consistent response to how a business can create the value. This model describes the value logic of a firm in terms of how it creates & captures the customer value and can be concisely represented by an inter-related set of elements that address the customer, organizational architecture, value proposition and economics dimensions. The model provides a holistic view of a company that shows how an organization’s internal structure is managed and how it connects with its external structure/environment. The model fulfils several function including identifies a market segment & specifies the revenue generation mechanism, articulates the value proposition, defines the structure of value chain, estimates the cost structure & profit potential, details the revenue mechanisms, describes the position of any firm within the value network linking suppliers & clients and formulates a competitive strategy.
Business model of a firm
consists of several elements, also recognized as components. Business framework
model show and select these component as well as highlight the relations
between these components. General Business
Framework Model with several elements consisting of four key
components: core strategy, value network, strategic resources, and customer interface.
The core strategy defines a business mission that shows the products, markets of
any company and it also explains how the firm or organization competes
differently than its competitors. The value network shows the network of any
company for instance partners, suppliers and coalitions. These components or
networks also decomposed in different sub-elements, which are related to each
other via several types of connections. Strategic resources include the core
competencies including skills, knowledge and unique capabilities of the
company. Beside that it also specifies the strategic assets of the firm and
core process of the company. The last component, customer interface also has various
functions like all the insights of the customer & interaction between the
company and its customers and how the company can reach their clients.
Ken Research
is a competitive service provider in India. We analyze the right Industry
competitive positioning strategies for the key sectors. Competitive
positioning refers to define how you will differentiate your offering &
create value for your market. It is about statue out a spot in the aggressive
landscape, putting venture in the ground, and winning the mind-share in the marketplace.
A good positioning strategy is influenced by customer segments (group of
prospects with similar desires & needs, market profile (competitors, size
and stage of growth), competitive analysis (strengths & weaknesses,
opportunities and threats in the landscape) and method to deliver the value
(deliver the value to market at the highest level) etc.
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Ankur Gupta, Head Marketing & Communications
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