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Relationships Between Strategy and Business Model

If ever there were a contest for the greatest management buzzwords in recent years, the concept of business model would come somewhere near the top. However, few of those who use the term are comfortable when they try to give a concrete expression to the different notions and dimensions it covers. This is a shame, because a good business model is essential for any company wishing to expand, whether it is starting up or already well established. Dr. Philippe CHEREAU, SKEMA Ventures Director, clarifies the concept and the relationships between strategy and business model.

The business model canvas is commonly accepted as an appropriate tool to design the components of a company’s business model. Indeed, it allows entrepreneurs to answer the following questions: Who are the company’s clients? What problems do these clients have that the company wants to solve? What solutions to the problems can the company offer that clients will value? How can we organize the company’s activities to develop and deliver this offer? Will this offer and the underlying cost structure and revenue model generate lasting profit?  Watch the video below to learn about the different components of the canvas.

The efficiency of a business model depends not only on the consistency of the business model components but also on the alignment between the business model as a whole and the company’s strategy. Dr. CHEREAU  illustrates this dual level of fit.

Should entrepreneurs invent a new business model or improve existing models? Watch the video below to get an answer to these questions.

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SKEMA Ventures

SKEMA Ventures is a business unit created by SKEMA Business School dedicated to impact entrepreneurship and innovation. Through a unique value chain, that encompasses teaching, coaching, incubation, and acceleration, SKEMA Ventures allows each SKEMA student and alumni to think, design, test and launch an impactful entrepreneurial project in a global context, on six innovative territories on four continents, benefiting from the best of each local ecosystem. With SKEMA Ventures, GloCal impact entrepreneurship is born! Watch this video to know more

This Post Has 3 Comments

  1. What insightful videos! Using a BMC can make entrepreneurs focus on key strategic elements, promote iterative development, reduce the risk of failure, and BMC is also customer-centric. To complement BMC, an ERP system might be helping. The “Key Activities” and “Key Resources” in BMC might involve the implementation and use of an ERP system to manage and optimize internal processes. Additionally, the “Revenue Streams” and “Cost Structure” in BMC can be influenced by the efficiency gains and cost savings achieved through the implementation of ERP.

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