Business model and strategy

Business model strategy
·        The business model focuses on value creation ·        Strategy goes way further than the business model by pursuing on building a sustainable competitive advantage
·        Business model focuses on converting innovation to economic value ·        Strategy also focuses on how to enhance shareholder worth/value
·        It assumes limited environment at knowledge ·        It is based on more complex analysis that requires more creativity in knowledge of external factors
  1. Strategy is the art and science of the planning and conducting war.
  2. The word is derived from strategy which means to lead/win the war.
  3. In earlier times warriors always found ways to win the war which required strategic planning to gain a competitive advantage over their enemies.
  • Due to the complex nature of the business decisions, the present business environment can be compared to a like situation and “strategic management” has become important for their survival and growth.
  • Setting targets on the basis of opinion.

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