BMG705 Individual Written report Sample
Introduction
An organization’s business model demonstrates to consumers how it produces and provides value to them through the logic of the model. In addition to data and other supporting evidence, a business model is created.
The revenue, cost, and profit structures associated with the commercial operation that is responsible for providing that value to clients are also explained. During the development of a business model, it is important to consider the numerous components that must be taken into account. Figure 1 displays a breakdown of the major components. (Morales,,2018)
Every one of them is interconnected, and they together form the nucleus of the fundamental question presented by business strategists: what makes a strong business model design? In order to achieve a sustainable competitive advantage and generate a disproportionately big profit, one must first establish a competitive advantage.
Company overview (KYAN)
For the uninitiated, a business model of KYAN describes the process through which a company generates and delivers value to consumers, and then converts the money gathered from those customers into profits. In order to be successful in innovation, business pioneers must be successful not only in product innovation, but also in business model design.
This demands a knowledge of both business design choices as well as customer desires and technical trajectory for KYAN. Being able to build a successful business strategy for KYAN is not enough to assure that a company remains competitive. (Morales,,2018)
It is advantageous to have a differentiated (and difficult to copycat) e-business model that is effective and efficient, and hence more likely to generate revenues, because imitation is rampant. In their view, a business model that is sufficiently distinct and difficult to imitate for both incumbents and newcomers can serve as a source of competitive advantage in and of itself.
In spite of having a long history that dates back to when societies first began to engage in barter transactions, business models have only lately gained widespread recognition, with the majority of people only being aware of them in the last ten years or so.
Main Body
As the information economy grows in importance, so do Internet and electronic commerce. Outsourcing and offshoreing of numerous business activities as well as the reorganisation of the financial services industry must all be taken into consideration as well.
The company in question was selling a product that could be purchased either separately or as part of a bundle as a standalone item. It is now possible to analyse diverse revenue and spending assumptions more easily than in the past, thanks to the availability of electronic computers that allow for low-cost financial statement modelling.
As a result, with the expansion of the Internet, fundamental concerns about how businesses deliver value to their customers have been reopened and brought to light, problems that had previously been buried. As a result, there are now new and important considerations about how organisations give value to their customers as a result of this development.
FDI issues that make or break the decision to expand
In addition, consider how they could gain from providing new information services that customers have come to demand over time to be able to receive without having to pay any fees
Due to the ease with which customers may now conduct comparative shopping as a result of the easy access to large amounts of data and information made available to them by the internet and other technologies, customers’ bargaining power has grown for KYAN. Digital downloading became possible in a range of industries, including the music industry, that had previously been unable to do so due to technological limitations. (Nazir,,2019)
To compete with existing channels (such as physical product sales), music recording companies are being forced to rethink their business structures from the ground up for KYAN.. This is partly due to the widespread use of illegal digital downloading, which has forced the music recording industry to rethink its business structures from the ground up. Additionally, the Internet may be used to entertain and educate oneself, in addition to providing a convenient means of gaining access to digital information and communicating with others. (Morales,,2018)
Records companies, artists, and composers are all encountering difficulties in recovering value from transactions and flows on the Internet as a result of the introduction of a new channel of distribution and the growth of piracy. Furthermore, as a result of the move to online sales, many traditional brick-and-mortar businesses are being forced to rethink their distribution strategies as a result of the Internet.
They should at the very least revise their company plans, if not all of their business procedures.
Internet-based enterprises, such as music distribution and news publication, have struggled to develop long-term business strategies, despite the fact that the Internet has weakened their respective business models. (Paull,2019)
According to a study published in 2001, the public markets served as a source of financial capital for a large number of new businesses with zero or negative profitability (and historically low sales), which, at least for a brief period of time, met their needs and provided them with financial resources. Only a small number of people have done so, leading one expert to make a comment. According to the author, a widely used yet unsustainable business model is on the approach of being phased out totally.
The following elements can be used to judge whether a business model for KYAN. is a good one, independent of the industry in which it is implemented: Customer value propositions that are both attractive to customers and profitable for the company are the hallmark of a successful business strategy. The achievement of superior client service, the achievement of favourable cost and risk structures, as well as the ability to capitalise on enormous amounts of value are all objectives. (Rexhepi,,2018)
Mode of entry
Producers are companies that create items and services for their clients, and then distribute them to their target markets. Successful organisations recognise the significance of thinking out, implementing, and continuously improving economically viable architectures for revenues and costs, among other things, in addition to comprehending the requirement of “creating” a business effectively.
However, ensuring the profitability of a business model is likely to be a long-term endeavour as well, particularly when the organisation is first established, especially when the organisation is small. Unless the business model configuration is appropriately tailored to the competitive environment and environment, it is unlikely that better technology and goods, outstanding people, sound governance and leadership, and strong governance and leadership would result in long-term success. for KYAN.
being surrounded by a strong sensation of seclusion Several preliminary requirements for the development of a business model are discussed in the first section of this article, and the second section presents a summary of these criteria. Economies are based on the implicit assumption that trade is dominated by tangible goods, with intangibles serving as a last-minute afterthought at best. In most cases, traditional approaches to competitive markets simply assume away the difficulty of capturing value: inventions are often expected to generate value on their own, without the need for any additional support from the market. (George,,2017)
Recommendations
Examine well developed spot and forward markets, strong intellectual property rights, unfettered information flow, perfect arbitrage, and a lack of new items and services to provide as factors to consider.
- To achieve success in mainstream methodologies, it is simply not required to be concerned with the value proposition provided to clients, the structure of revenues and costs, or the mechanisms for capturing value, as these are all taken care of automatically.
- Purchasers will pay less than the utility derived; providers will charge a price that is equal to or greater than all costs, including a return on capital invested; and Every issue is resolved by the price mechanism, and concerns connected to company design will never arise.
- According to academic literature, general equilibrium models with (one-sided) marketplaces and perfect competition, on the other hand, are believed to be a ridiculous representation of the real world. In actuality, intangibles are normal, and two-sided markets are also commonplace in today’s society, as evidenced by the fact.
Conclusion
Consumers are looking for more than just products; they are looking for solutions to the difficulties that they believe they are experiencing personally. During the early stages of a market’s development, entrepreneurs may be required to construct organisations to carry out tasks for which markets are not yet ready to accept their products, which means they may be required to invest in the establishment of new organisations. Entrepreneurs are also referred to be business owners in the real world, as a result of this.
In the process of building business models, and in some cases, in the process of establishing organisations to carry out transactions that are not yet available on the open market, managers must pay close attention to the intricacies of the business model.
References
George, M. and Cherian, E., 2017. EMERGENT GLOBAL MARKETING CHALLENGES FOR KERALA CARDAMOM PRODUCERS VIS-À-VIS ROLE OF THE SPICE BOARD. International Journal of Community Development and Management Studies, 1, pp.039-061.
Morales, G., 2018. Global Marketing Management. Scientific e-Resources.
Nazir, S., 2019. CIO interview with ali aurangzeb, head of global marketing and deputy head of digital transformation, netsol technologies, Inc. Journal of Global Information Technology Management, 22(2), pp.146-149.
Paull, R.E. and Chen, N.J., 2019. Overall dragon fruit production and global marketing. FFTC, http://ap. fftc. agnet. org/ap_db. php.
Ramadani, V. and Gërguri-Rashiti, S., 2017. Global marketing, gender and family business in Asia: A literature review. Journal of Global Marketing, 30(3), pp.138-146.
Rexhepi, G., Bexheti, A., Ibraimi, S. and Kurtishi-Kastrati, S., 2018. The importance of intellectual capital in the selection of global marketing strategies: evidence from family businesses in Macedonia. International Journal of Transitions and Innovation Systems, 6(2), pp.108-117.
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