The difference between Business model and Business strategy

 

1. What is the difference between Business model and Business strategy in general?

2. Define the Value preposition of the company:

-its products and services

-customer relations

-brand image

3. What is the revenue generation strategy of the company?

4. Define its cost structure

5. Define its value creation structure

Writing requirements:PPT

1. Create a Power Points Presentation of 15 – 16 slides.

 

Sample Solution

Understanding Your Business: Model vs. Strategy & Value Creation

Slide 1 (Title Slide)

  • Title: Demystifying Your Business: Model vs. Strategy & Value Creation
  • Subtitle: A Deep Dive into the Core Concepts
  • Your Company Logo (optional)

Speaker Notes In today’s presentation, we’ll explore the fundamental building blocks of a successful business: the business model and the business strategy. We’ll differentiate between these terms and delve into the critical elements that define a company’s value proposition, revenue generation, cost structure, and value creation process.

Slide 2 (Agenda)

  • Title: Agenda
  • Bullet Points:
    • Business Model vs. Business Strategy
    • Value Proposition: Products, Services, Customer Relations, Brand Image
    • Revenue Generation Strategy
    • Cost Structure
    • Value Creation Structure
  • Image: A roadmap image with icons representing each agenda point

Speaker Notes This presentation will follow a clear roadmap. We’ll begin by understanding the distinct roles of business model and business strategy. Then, we’ll dissect the value proposition, the heart of what your company offers to customers. We’ll explore how your company generates revenue, followed by a breakdown of your cost structure. Finally, we’ll examine the value creation process, how you transform resources into customer value.

Slide 3 (Business Model vs. Business Strategy)

  • Title: Business Model vs. Business Strategy
  • Bullet Points:
    • Business Model: What your business does and how it does it. (Blueprint for operation)
    • Business Strategy: Why your business does it and how it will win. (Long-term competitive advantage)
  • Images:
    • Left side: Blueprint graphic representing a business model
    • Right side: Chessboard graphic representing a business strategy

Speaker Notes Think of a business model as the blueprint for your business. It defines the core elements of your operation: what products or services you offer, how you deliver them to your customers, and how you create value for them. The business strategy, on the other hand, focuses on the “why” and “how” of achieving a competitive advantage. It outlines your long-term goals and the specific actions you’ll take to outperform your competitors in the market.

Slide 4 (Value Proposition)

  • Title: The Value Proposition: What Makes Your Business Unique?
  • Bullet Points:
    • Products & Services: What tangible and intangible offerings do you provide?
    • Customer Relations: How do you interact with and build relationships with your customers?
    • Brand Image: What emotions and associations do you want customers to have with your brand?
  • Image: A pyramid with “Value Proposition” at the top, supported by three sections labeled “Products & Services,” “Customer Relations,” and “Brand Image”

Speaker Notes The value proposition is the cornerstone of your business. It clearly articulates what makes your company unique and the specific value you deliver to your customers. This value is shaped by three key elements:

  1. Products & Services: What tangible goods or intangible services do you offer? What are their features and benefits?
  2. Customer Relations: How do you interact with your customers? Is it through a self-service platform, personalized interactions, or a mix of both?
  3. Brand Image: What emotions and associations do you want customers to have with your brand? Are you known for reliability, innovation, or affordability?

Slide 5 (Value Proposition Example – Airbnb)

  • Title: Value Proposition Example: Airbnb
  • Bullet Points:
    • Products & Services: Online marketplace for unique lodging
    • Customer Relations: User-friendly platform, community focus
    • Brand Image: Affordable, authentic travel experiences
  • Image: Split image. Left side: Airbnb logo. Right side: Image of a variety of Airbnb listings

Speaker Notes Let’s look at an example. Airbnb’s value proposition combines its core product (an online marketplace for lodging) with a focus on customer relations (user-friendly platform and fostering a sense of community) to create a brand image of affordability and authentic travel experiences.

Slide 6 (Revenue Generation Strategy)

  • Title: Turning Value into Revenue: Your Revenue Generation Strategy
  • Bullet Points:
    • Identify your revenue streams: How do you generate income? (e.g., product sales, subscriptions, advertising)
    • Define your pricing strategy: How much will you charge for your products or services?
    • Consider customer payment methods: How will customers pay you? (e.g., credit cards, online payments)
  • Image: A funnel graphic with “Value” at the top, followed by “Revenue Generation Strategy” in the middle, and “Revenue Streams” at the bottom

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