4 / 2016-09-05 08:46:43

The path of ascension for business model effectiveness

business model,effctiveness,proft model

As everybody can see, the general functions of a business model have been widely discussed, but there are few studies on the effectiveness of a specific business model. The effectiveness of a business model, which is different from its basic functions, refers to the practical effect or realization degree of a specific business model as a support of specific operational system. Three functional components of a business model are summarized, which are Customer Value Position, Profit Model and Operation Model. Because business model’s major functions are to promote new value co-creation and value co-capture in a specific situation, here we use the product of the actual effect of Customer Value Position and Profit Model to define the effectiveness of a business model. As such, this study, based on cases analyzing, deeply analyzes the method to assess and improve business model effectiveness.