Why Business Models Matter
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Why Business Models Matter
By Joan Magretta
Article review
In the first place, this article illustrated how fatal an ill-defined Business Mode, which was one of the buzzwords of the Internet boom, is. Many dot-com companies failed to fathom the exact implication of business model. They set aside any other crucial factor of a successful business. They even didnt need a strategy, a method making the companies unique, or a special competence, sap making the companies prosperous, or customers, the overlord wielding the companies destiny. They assumed that a web-based business model is more than enough during that boom. Lots of people-investors, entrepreneurs, and executives plunged into it and got drowned. In tandem with the illustration, the author sequentially points out the similarity among the good business models, which are essential to every successful business. Managers must sober-headed and get a perfect understanding of the precise meaning of business model before they can apply the concept.
Thereafter, the author numerated a bunch of good stories, which are actually historical applications of business model with a brilliant triumph, such as American Express that converted its model of travelers check into reality and Michael Bronner who made his model, direct-marketing, come to be true. A few major common characteristics these good businesses shared are plausible, convincible, practical, and unique-most important one to remain competence...