What Is a Business Model?

Verstraete and Laffitte (2011) asserted the term business model for their claim; it is widely used, still has a vague connotation and raises more questions about its limitations, meanings and lifetime only. According to Osterwalder & Pigneur (2013), the business model describes the basic principles of how a company creates, offers and acquires value. This is just a symbol of the tip of the iceberg; the business model can not be fully explained unless there are nine basic components to demonstrate the logic that the company intends to make a profit.

This raises another problem; what is the business model? Michael Lapa says, " "In its most basic sense, a business model is a way of doing business, a company can create a profit in this way, the business model identifies the values ​​of the company Alex Osterwalder and Yves Pigneur "Business model explains the fundamentals of how an organization creates, provides and acquires value," he said. To do this, entrepreneurs need to decide which activities are at the heart of the business they want to do. The question of how entrepreneurs create value is also important. This is because the answer to this question is often helpful in understanding the customer base that the company can expect to be trustworthy. This may seem trivial. It's not

In the academic world, it is not clear what exclusive indicators of a superior business model are, but designing a business model has several important functions. This business model focuses on 1) customer, cost, competitor's competence, 2) difficult to copy, 3) has a dynamic function. Since the copying of the business model is usually very simple, the competitive advantage they bring is usually not very important. However, there are at least four reasons for making the business model difficult to duplicate (pdf). First, there may be systems, processes, or assets that are difficult to replicate, such as the Wal-Mart business model. Secondly, there may be some degree of opacity. Competitors do not always know which parts of the business model are actually building customer acceptability. Third, you may not want to eat away from existing sales and profits. In addition, rigorous results will slow any imitation attempts