Business Model and Business Strategy

The main ideas of the article are a discussion between a business model and a business strategy and how they sometimes get used interchangeably.

I found it insightful and relevant to know that your business model should tell a logical story explaining who your customers are, what they value and how you plan to make money providing them this value. In practical terms, business strategy is about how you'll beat competitors by being different in the marketplace. I believe a well thought out business model also enables you to test in action and revise your assumptions about customers, think carefully about the direction of the business and get key employees on board with your company's mission/strategy.

One way I could apply these ideas in practice would be to start up a business and franchise it. The franchise business model has been very successful for most brands. I would figure out how to run a successful retail location and then turn the business process into an easy to follow system that can be sold to people looking to get into business for themselves. Sell the dream and find hungry like-minded entrepreneurs who share the passion and sell them start up packages which would include training and help new business partners to lease new locations for expansion of the brand. I would have all franchisees buying centrally to cut cost for better profits and form a board of directors and committees to help govern over the mission/strategy.

Some of the limitations in this article would be the things you can't control like external and internal contingencies, social, economic and technology changes and even the best business models fail over time. We would also need to be constantly testing and revise our business model whenever it shows it is necessary or it can be death for the business. Doing business is risky and the market is dynamic so we need to have a clear direction and