Environment Trends
Competitive Environmental Trends and Business Model
U7a1, DB8004-01
Farris McCrimmon
Capella University
Introduction
A business model consists of four elements that create and deliver value. The four elements are customer value proposition, profit formula, key resources and key processes. . Successful business models generate cycles that are self-reinforcing and over time, make them operate more effectively. Casadesus-Masanell, & Ricart (2011) explain that companies can compete through business models in three ways: They can strengthen their own cycles, block or destroy the cycles of rivals, or build complementarities with rivals ' cycles, which results in substitutes mutating into complements.
Sony Corporation is the business unit and the parent company of the Sony Group, which has six operating segments in which it conducts business – Consumer Products & Services Group, Professional, Device & Solutions Group , Pictures, Music, Financial Services and Sony Ericsson. Sony Electronics has been a market leader for many years starting with the Betamax in the 1970’s and the Walkman in the 70’s and 80’s.
The focus of this paper is to examine if Sony is effective in using its current business model with in its industry. How do the Strategic business units work within the company. What are the current strategies being employed and the resources available to the company?
Business Models/Strategy
A business model consists of four elements that create and deliver value. The four elements are customer value proposition, profit formula, key resources and key processes. Each of these elements is interlocked with each other. Customer value proposition is finding a solution to a problem that exists. The profit formula deals how the company creates value for itself and provides it for its customers. The key resources are the assets needed to create the value. Johnson, Christensen, & Kagermann (2008) suggest that there are five instances that
U7a1, DB8004-01
Farris McCrimmon
Capella University
Introduction
A business model consists of four elements that create and deliver value. The four elements are customer value proposition, profit formula, key resources and key processes. . Successful business models generate cycles that are self-reinforcing and over time, make them operate more effectively. Casadesus-Masanell, & Ricart (2011) explain that companies can compete through business models in three ways: They can strengthen their own cycles, block or destroy the cycles of rivals, or build complementarities with rivals ' cycles, which results in substitutes mutating into complements.
Sony Corporation is the business unit and the parent company of the Sony Group, which has six operating segments in which it conducts business – Consumer Products & Services Group, Professional, Device & Solutions Group , Pictures, Music, Financial Services and Sony Ericsson. Sony Electronics has been a market leader for many years starting with the Betamax in the 1970’s and the Walkman in the 70’s and 80’s.
The focus of this paper is to examine if Sony is effective in using its current business model with in its industry. How do the Strategic business units work within the company. What are the current strategies being employed and the resources available to the company?
Business Models/Strategy
A business model consists of four elements that create and deliver value. The four elements are customer value proposition, profit formula, key resources and key processes. Each of these elements is interlocked with each other. Customer value proposition is finding a solution to a problem that exists. The profit formula deals how the company creates value for itself and provides it for its customers. The key resources are the assets needed to create the value. Johnson, Christensen, & Kagermann (2008) suggest that there are five instances that
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