How
to impact the business model on share price
The business model is reshaping the business
process. Each industry's having a unique business process; however, which
entity reduces the processing time and intrude the different methodology that
there will rival with competitors effectively.
The word of business model would make the
misconception amongst the entrepreneurs. Most of them think that BM needs new
inventions or high-technology; in contrast, many successful companies are
copying from existing BM. They restructure or modify the business models building
blocks. The classic example is PayTm. Which business model introduced by PayPal
but, PayTM has adopted to their start-up that BM they have recalibrated for the
Indian market.
Almost 55 business models have found by new
entrepreneurs. Today's growth investors are exploring different BM to find the
investment opportunity. Two decades ago, growth investment only had been
technology-centric. Since then, many start-ups came up with a new idea and
implemented the business model those all made revolution and they had set up
their BM as customer-centric. For example, Dell computer's build to order BM
and Bajaj finance interest-free EMI service. Both of these are functioning in
different industries. Stock market investors would get an exponential return by
their investment. In comparison with brick and mortar, companies are providing
a little profit.
Analyzing
the business model
BM slogan is creat value to the customer. In
the cut-throat competitive world, CEOs trying to find customer's problems and
how to solve customer's unmet needs. For example, Indian E-commerce leader
Flipkart has not gotten success in the rural area in the earlier. When they
researched that, the research found that consumers have not willing to pay
advance without seeing the product. Flipkart found the solution and announced
the cash on delivery for rural customers. After implemented this system,
millions of Indian customers began to purchase online.
The equity investor when they tend to analyze
BM, the primary thing is what type of BM are applied to the specific
enterprises, and how to create value to customers and the company itself.
We need to view with an insight into enterprise
tactics because the market environment is more dynamic. So, what strategy is
the following to provide more benefits to customers than rivals and also
analyze their revenue model?
Let's see the Relaxo footwear example, which
company is manufacturing the footwear for Indian customers. There target
customer segment is middle income, before the advent of this company, Bata
footwear had been dominating in this industry. Relaxo footwear is producing a
variety of new design footwear at a low cost, and its distribution channel
delivers all over India, even remote areas too. For that reason, they can to be
acquired a substantial market share in a short period.
Why
is the business model roadmap necessary?
BM is not mediocre for enterprise success, even
though many types of BM have discovered during the last two decades. The top
managers should figure out which model will be appropriate for our enterprise,
so they need to work from ground level.
In this time, Data would tell the practical
aspects, the current status of an industry, customer problem, which technology
will be more relevant to construct business processes. It is not so simple, why
because top managers and stakeholders are willing to take risks and encounter
changes in corporate cultures. Indeed, when introducing the new business model,
the existing employers are challenging to adopt a new culture. So, firms high-level
people ready to bring changes from the threshold.
SWOT analysis will bring out the unidentified resource
of the company and where to need improvements and how to resolve the current
issue. Anyone changes can affect another one business process or chain. In terms
of this case, need insight view and talented team members. As pointed out
earlier, the decision-maker should keep a crystal clear road map about the BM
unless confusion and conflicts could be persisting without a solid conclusion.
In the modern economy, advance BMs are directly
related to enterprise digitalization.
When analyzing the stock, business product
demand needs to be sure. Which is meant by scalable business, and business
could expand without investment. Mc Donalds is a good example.
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