Product, Serice or Business Model Essay

516 WordsNov 16, 20123 Pages
What is more important for enterprise growth: a better product or service, or a better business model? In my opinion, having a better business model is more important than having a better product or service, especially for the long-term prosperity of a company. Without the proper business model developed and implemented, it is more difficult for a company to determine whether or not the “better” product or service will be able to find success within a particular industry. It brings structure to innovation by aligning several factors and determining the sources of possible growth. According to the course material, the business model is “a framework for making money.” Personally, I feel that this means that the model outlines where money will come from internally in order to generate revenue and profits, as well as externally in order to determine who the audience will be. For this reason, although it is important to have a better product or service in comparison to a competitor, it is strategically more important to have a specific plan in place that will help to determine what value this “better” product or service will be able to provide to consumer (customer value), where revenue will come from and how it will be created (earning profit), how R&D will be handled, as well as how a number of other significant questions will be answered. In terms of enterprise growth, the business plan is what will help to determine the various innovation strategies that will be used to position the products or the company’s services. The chosen business model will help to create and establish a company’s competitive advantage. Having a better product or service may be what helps to give a particular company the “wow” factor we discussed some last week which help to attract consumers but it will not provide direction for the future. The business model is also what helps a

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