Management Science Strategy

By Johnny C.H. Lok

The direction between business and tactic models and tactics Nowadays, business model has been used by strategy to refer to the logic of the firm, the way it operates and how it creates value for its stakeholders. What is the relationship between business model and strategy? Can business model reflect a clear separation between tactics and strategy. This distinction is possible because strategy and business model are different constructs.Any strategy can help a firm to learn to analyze its competitive environments defined its position, develops competitive corporate advantages and understands threats to sustaining advantage in the face of challenging competitive threats. However, external environment changing ( variable) factor can influence a firm's development. Such as globalization, deregulation to technological change. So, any firm can't neglect to change to compete differently and innovate in its business model. For examples, IBM computer firm's 2006 year and 2008 year " Global CEO study", showed that top management in a broad range of computer industries are actively seeking guidance on how to innovate to its computer business model to improve its ability to both create and capture value.Advances in information and communication technologies have driven the recent interest on business model innovation. Many e-businesses constitute new business models. Of course, not all business model innovations are IT driven; other forces, such as globalization and deregulation, have also resulted in new business models and fed the interest on this area. In fact, socially motivated enterprises that aim to reach the bottom of the pyramid constitute an important source of business model innovations. In truth, there is not yet agreement on what are the distinctive features of super business models. We believe that the dispute has arisen, because of lack of clear distinction between the strategy and business model and tactics.Business model refers to the logic of the firm, the way, it operates and how it creates value of its stakeholders. Strategy refers to the choice of business model through which the firm will compete in the marketplace. Tactics refers to the residual choices open to a firm by the business model that it employs. What is the difference between the concepts of strategy, business models and tactics? In the first stage, firms need to choose a login of value creation and value capture ( chose their business model). In the second stage, firms make tactical choices guided by their goals ( in most cares, goals expect some form of stakeholder value maximization). So, the object of strategy is the choice of business model and the business model employed determines the tactics available to the firm to compete against, or cooperate with other firms in the marketplace. However, any business needs to know how the connection between strategy and business model and tactics can be clearly separated.How to define a good business model? Two questions need to concern to answer: who is the customer and what does the customer value? what is the economic to customers at an appropriate cost? My idea is that business model refers to the logic by which that any business model should answer, one related to related to the value provided to the customer and the other to the organization's ability to capture value in the process of serving customers. For example, e-business can be an innovative technological business model to value chain analysis, the resource-based view of the firm, dynamic capabilities, transaction cost economies and strategic network. So, why business model is the first stage to design before strategy and tactics achievement.

• Format: Paperback
• Language: English
• ISBN: B08MSSD6LH
• ISBN13: 9798558853179
• Release Date: January 1
• Publisher: Independently Published
• Length: 324 Pages
• Weight: 1.42 lbs.
• Dimensions: 0.7" x 8.0" x 10.0"