Business models help companies to use their resources including products, services, and financial features to maximize their target customers’ needs and satisfactions. Meanwhile, a effective business model eliminate the wasted business processes so that to cut down the cost on wasted procedures, which enable organizations to make more profits. In addition, organizations actually develop their competitive advantages through demonstrating a business model. A successful organization usually has a comprehensive canvas, for example, Google.
Why does Google’s business model work? For one part, the company made a novel idea on their key activities part: it focuses on activities, that are inexpensive, in order to monetize the core values of the activities. Like the Google Doc, they are free for customers. But when you create and sign up for the account to get access to the online documents by using your email address, several advertisements will reach you. That’s how the advertising works in Google. For another part, Google’s technological innovations are powerful. When people are researching, different categories like vedios, papers, websites, etc. are shown in the top of Google.com. It gives customers multiple accessible channels to find what they want, and in return, Google gets more attentions from those customers.
Similarly, successful organizations always have effective business models to lead them to the right paths, which give them more opportunities to develop their unique tactics to run their own systems and therefore keep their companies function well enough to attract more customers.
Resources:
1. “Understanding Google Business Model | Understanding Business Models.” Understanding Business Models | Design, Assessment, Innovation, Differentiation, and Transformation. Web. 2 Oct 2013. <http://bmimatters.com/2012/03/29/understanding-google-business-model/>.
2. Crawford, Alejandro and Lisa Chau. “Why Google’s Business Model Works – Economic Intelligence (usnews.com).” US News & World Report | News & Rankings | Best Colleges, Best Hospitals, and more. 25 Jun 2013. Web. 2 Oct 2013. <http://www.usnews.com/opinion/blogs/economic-intelligence/2013/06/25/why-googles-business-model-works>.