Business Strategy, Business Innovation and Business Models

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Requirement

Develop understanding of the importance and appreciation of the close links between business strategy, business innovation and business models. 

Solution

INTRODUCTION

There are several internal factors stays behind the success of any firm. Here, with the help of different factors, the only manager of an organization is able to maintain its competitive position in the market (Foss & Saebi, 2017). Thus, the given thing also helps it in the process of improving sales and profitability related condition of an organization. Among all one of such type of factor is a business model. Each company has their own business model. In this regard, this essay will give an answer to the question that why business model of are subject to the rapid disruption and displacement.

Explaining the term 

According to the viewpoint of Linder & Williander (2017) business model is the type of mechanism with the help of which companies generates profit. However, França and et.al. (2017) have depicted that business model is basically a systematic plan which guides firm towards the strategic and tactical goals. In this context, it can be said that it is the approach that assists firms in the task of attaining its tactical objectives in an effectual manner.
Besides this, as per the viewpoint of Baldassarre and et.al. (2017) disruption is basically the problem or disturbance which tends to affect the whole activity of the enterprises. There are numbers of disruption occurs in the smooth going activity of firm and these have a significant impact on the type of business models which are being used by the enterprises.

Analyzing opportunity and threats caused by advances in Smart Connected Product

Smart Connected Products are the smart technologies which make the work of firm easier.  Here, it has different new technologies that tend to provide assistance to the business model of an organization. In this regard, opportunity and threats caused by advances Smart Connected Product to the business model of Domino’s Pizza, Australia is examined. 
Herein, on the basis of analysis, it is examined that famous fast food chain named as Domino’s Pizza follows franchise business model in which company is expanding its operation by giving rights to conduct its business to other individuals. In this context, it can be said that franchising is being regarded as one of the most effective models as it gives the opportunity to firms with regard to establish their business in the market which is completely unknown to them (Yang, Evans & Rana, 2017). Here, all tasks related to business location and infrastructure development is done by franchisee only. It also reduces the firm’s need to gather information about the specific market. Thus, it is through this way the only respective model is assisting Domino’s Pizza in saving lots of money. However, money which is saved by the company through this activity can be used by it for some other purposes. 
The developments which are happening in the Smart Connected Product will tend to provide different opportunities and threats to Domino’s Pizza. On the basis of analysis, it is examined that the company is taking its pizza ordering process to very new level. Herein, the cited company has connected its mobile application to the smart home devices of customers. For the given purpose, Domino’s has signed a partnership agreement with IFTTT. This partnership will bring evolution to the pizza tracking system. Here, customers can program their smart home devices for the food delivery. For example, buyer’s porch light will on when the food is available at doorstep. In a similar way, the system can also deactivate sprinkler with an aim to avoid driver getting wet (Li, Luo & Wu, 2017). 
Thus, it can be said that advances in Smart Connected product will provide several opportunities to Domino’s Pizza. By using this, an organization can build its unique image in the market. This is because it is a very concept and each and every customer of the company would like to try it. Thus, the given thing will provide the opportunity of the cited firm with regard to developing a very new base of the buyers. This will provide benefit to the company in the form of increase profit and sale. Moreover, Dominos also has an opportunity to enhance or maintain the satisfaction level of its buyers. The customer of the company feels highly satisfies if they see that the firm is thinking so much about them. Thus, the given thing will motivate them to become loyal to the company. As a result of it, they continuously use the products and services offered by a corporation in an effectual manner. 
However, advances in Smart Connected Product come with different type of threats also. One of a threat for Domino’s Pizza could be customer’s lack of understanding of devices. There are chances that buyers of the cited company did not understand the new concept of the firm. In this situation, all the money which is being spent by the corporation in new technology will turn into wastage. In addition to this, another threat is competitors of company copy the same technique (Linder & Williander, 2017). In the given circumstances, the customers of the company will be divided. The impact of the same will have on the sales and profits of the corporation. It is by complying with given type of activity only firm can add value in its operation. The given thing will bring changes in the business model of the firm also. Thus, it is correct to say that at present business model is the subject of rapid displacement. 

Business model framework

The business model framework of the business model framework by Osterwalder and Pigneur is examined and it is depicted in below:

Figure 1 Business Model Framework
(Source: Baldassarre and et.al., 2017)

This framework has nine different segments and all together they help in accomplishing aim and objectives of the organization. From the above-conducted analysis, it is identified that business model helps in accomplishing tactical aim and objective of the organization. In the given task the framework given by Osterwalder and Pigneur tend to play a very significant role. Here, with the help of this manager of the firm can get an answer to the different question. Thus, accordingly, manager can make changes in its business model. For example, the main aim of Domino’s Pizza is to deliver high quality of services to its buyers. Thus, in this regard, customer relationship segment of the above mentioned framework can be used. Here, by giving answers to different questions manager of organisation can plan its strategy. Thus, it can achieve success in the market in an effectual way. 
Besides this, it is also found out that business model adds value to the existing operation of the firm. The given thing is also identified in the case of Domino’s Pizza. Here, due to advances in Smart Connected Product, the firm is getting value in the form of high satisfaction among buyers. Thus, with the help of Osterwalder and Pigneur manager of the firm can resolve different questions related with the business model. Thereby, they can produce an effective business model which suits their needs and wants. Thus, it is correct to say that business model is a matter of change (Yang, Evans & Rana, 2017). If an organisation follows old approach at that time it will become very difficult for it with regard to mark its effectual presence in the competitive environment. The impact of the same will be seen on the profitability condition of the organization.

Expanding analysis

As per the changing needs of buyers, manager of the firm has to make a decision about the different type of business model. For example, in the case of Domino’s Pizza, the main aim of a manager is to raise the satisfaction level of its customers by delivering them high-quality services. This objective of the firm will not be achieved if the firm would rely on franchise business model. This is because; with an aim to assist the same firm will have to deploy the model like value preposition. It is the type of model which gives importance to the needs and wants of the customers. Further, this model also believes that company can add value if it satisfies the needs and demands of its buyers in an effectual manner. 
In order to work in the, today’s environment firm will have to give importance to the respective perspective. This is because it is through this way an only company can achieve success in the market (Foss & Saebi, 2017).
In comparison to this, business model as the profit margin is the completely different approach. Here, manager main aim is to earn a profit. Thus, in this manager does not give importance to the needs of its buyers. This is because; here their main purpose is to make the business profitable. Thus, it can be said that a firm cannot attain its objective by following the single business model. This is because each model has own pros and cons. On the basis of firm's overall aim, the manager has to make changes in its model. This is because, if not done then the objective of the company will not make.

CONCLUSION

The findings of given study have its significance to business. Here, with the help of given study manager can improve its understanding of the different business model. In addition to this, with the help of these models, company like Domino’s Pizza can make changes in its strategy. Thus, in future, it can enhance its capability of earning high profit and sale. 

REFERENCES

• Baldassarre, B. and et.al. (2017). Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design. Journal of Cleaner Production, 147, 175-186.

• Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how far have we come, and where should we go?. Journal of Management, 43(1), 200-227.

• França, C. L. and et.al. (2017). An approach to business model innovation and design for strategic sustainable development. Journal of Cleaner Production, 140, 155-166.

• Li, Y., Luo, Z. & Wu, Z. (2017). Enterprise Pattern: integrating the business process into a unified enterprise model of modern service company. Enterprise Information Systems, 11(1), 37-57.

• Linder, M., & Williander, M. (2017). Circular business model innovation: inherent uncertainties. Business Strategy and the Environment, 26(2), 182-196.

• Yang, M., Evans, S. & Rana, P. (2017). Value uncaptured perspective for sustainable business model innovation. Journal of Cleaner Production, 140, 1794-1804.