Vision and Business Model PDF

Mahra Alabri Vision and the Business Model Chapter 3 Example of a Vision “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles”...

Mahra Alabri Vision and the Business Model Chapter 3 Example of a Vision “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” “We strive to preserve and improve life through the innovation of biomedical devices while supporting, training, and inspiring our employees so that individual ability and creativity is released and rewarded. Our goal is to be a leader in the industry by 2006 and be widely known throughout the world.” Elements of a Vision 1. Clarity: Easily understood, focused 2. Consistency: Holds constant over a time period, but adjustable as conditions warrant 3. Uniqueness: Special to this enterprise 4. Purposeful: Provides reason for being Elements of a Mission Statement 1. Core Values – how they accomplish there mission 2. Customers and/or Stakeholders 3. Products 4. Competitive Advantage 5. Values Provided to Customer – making the product worth it 6. Markets or Industry Mission Statement is description of the course of action to implement the vision. The Value Proposition defines the company to the customer Example of a Value Proposition: “Intel offers product as their primary value and service as their secondary value.” Five Values Offered to a Customer 1. Product: Performance, quality, features, brand, selection, search, easy to use, safe. (Reasons we buy a product) 2. Price: Fair, visible, consistent, and reasonable. (Sometimes we buy things we don’t need because of the price) 3. Access: Convenient, location, nearby, at- hand, easy to find, in a reasonable time. (Usually people buy something that will deliver fast or go to the nearst shop rather than far places) – (Captive audience) 4. Service: Ordering, delivery, return, check- out (Such as Talabat) 5. Experience: Emotional, respect, ambiance, fun, intimacy,relationships, community. The Unique Selling Proposition is a short version of firm’s value proposition Elements of A Business Model Dell Computer Business Model 1. Customer Selection: High Relevance ◦ Four Segments: Corporate, Government, Education, Consumer 2. Value Proposition: Unique Benefits ◦ Customized computer at good price with great service readily accessible via phone or Internet 3. Differentiation and control: Sustainable competitive advantage ◦ Customized products via direct sales channel on phone or Internet with strong service and customer relationships 4. Scope of Product and Activities ◦ Desktop, laptop, and servers ◦ Strong supply chain management (More suppliers to sell more products) 5. Organizational Design ◦ Divisional organization for each customer segment 6. Value Capture for Profit ◦ Opportunities for cross-sell and up-sell ◦ Avoid price as key value and focus on service and accessibility 7. Value for Talent: Learn, Grow, Prosper ◦ Training, Learning, and Career Opportunities Core competencies: Identify and state the firm’s core competencies Example of a Core Competency: “The core competency of Google is the design and operation of an internet search engine.” Competitive Advantage: of firm is its distinctive factors that give it a superior or favorable position in relation to its competitors Sustainable Competitive: Advantage is a competitive advantage that can be maintained over a period of time (measured in years) The Market Value of a Firm MV = CA x D ◦ CA = competitive advantage ◦ D = duration Potential Sources of Competitive Advantage Principle 3: The vision, mission, value proposition, and business model embodied within the firm, along with a sustainable competitive advantage, can lead to compelling results