In the business world, there are two important terms namely models and strategies. For business people who want to seriously run their business, it must understand the difference between these two terms. The following will explain the comparison of business model vs strategy.
Business Model is a cycle of activities that fulfill the vision and mission of the company. This illustrates the thinking of an organization to create, deliver, and capture values. This term is used in both formal and informal settings in business aspects. The business model also discusses the objectives, products offered, strategies, infrastructure and much more.
Each company will use a different model because the characteristics of each company are certainly different. Thus, the business model of company A might not be suitable for use by company B. This would also be the opposite. Examples are the brick and cement business model, the collective model, the supply chain and franchise cutting model.
The brick and cement business model integrates business online and offline. In this model, an online purchase while the buyer can come directly to the local shop to pick up the goods.This collective business model involves collaboration between entrepreneurs.
The aim is to provide resources together to give to members. The supply chain cutting model is a model that directly interacts with customers. While Franchising takes success from companies that have succeeded. Getting to know the business model is important to know the difference between business model vs strategy.
Business Strategy is a plan or concept developed by a company to achieve long-term goals. This is the key to the success of a business. This makes companies competing to consult with experts to formulate the best strategy. Although the existence of a strategy is very important, but this cannot be the sole determinant of the success of a business.
Conceptually the strategy was made so perfectly, but if the implementation or implementation is not appropriate then the business will still fail. There are 8 things to do when creating a business strategy. The first clearly describes the business. In this case it is necessary to decide carefully about the vision and mission and strategic plans regarding the company.
Explain also about the company’s current condition.Second, do an analysis from a business competitor.It is important to observe the strengths and weaknesses of competitors to apply the good things to the company itself.Third, choose the right marketing strategy.In this case explain the costs or budget for production, sales and distribution.
The fourth, do not forget to have financial statements. This report will be very useful to measure the success of the gains or losses obtained. The last and most important is to always maintain product quality. This will determine the age of a company can survive from consumer confidence.
Reasons Why Business Models and Strategies Are Different
The discussion on business model vs strategy has been alluded to previously. Models and strategies are two very different things. Strategy becomes one part of the model.. The existence of a strategy is important however, it is only a small part of the business model.
In developing a business model, it must also include strategies to be prepared. Strategy becomes a plan to determine the direction and objectives of the business. Then the strategy must adjust to the company’s vision and mission and circumstances to create an ideal business model.
That’s the explanation of the business model vs strategy. These two terms are certainly very different. But still interconnected with each other. Therefore, business people who are really serious about their business must understand the difference between these two terms.