The entrepreneurship and small business: MUJI case study
Introduction
In the global business, most of popular brands have been the entrepreneurship before they success. A number of individuals, who want to invest in some business, must have the investment budget or good financial status. However, the money is not the basic factor to invest the business yet the opportunities to initiate the business are more important than investment from shareholders. For example, Mr. Mark Zuckerberg, who is the founder of Facebook, was discovered the chance to create website which can share the activities and connect with friend and become the greatest social network in the world. (Phillips, 2007)
“They are seen as risk-takers and innovators who
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In Allen, Morris and Schindehutte (2005) research stated that there is no commonly concept of business model as results of there have wide range of descriptions. (Appendix A) A distinguished definition might be Amit and Zott (2001) who suggested that business models explain the viewpoint for clarify the configurations of new business firms and also created the possibility to successes.
According to Chesbrough (2003) study, he stated that business model has six key elements which concluding:
1. The value proposition is in which way that the products can response the customer requirement in term of technology which offers a dominant value proposition.
2. Market segment, the business firms must identify the group of customers which they can properly develop products in the similarly way to achieve customer satisfactions.
3. The value chain is the characteristic and the situation of the firms. This factor ought to success in main objective; purchaser must know the value of the organisation.
4. Cost structure and target margins which including sale price that should an acceptable and reasonable price for customer and also the target profit margin for the company.
5. Value network, the business firms must concern with outsourcing or third parties outer the value chain; suppliers or external competitions
A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.
The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)
Value creation is creating value for the customer. Being able to solve or meet the customer requirements. Value is created whenever an action is taken for which the benefit exceeds the cost.
Effective value chain as a competitive advantage can contribute significantly to the prosperity of a firm in the competitive arena, but it can cause dire situations if not operated properly (Guy, 2011). However, there are conflicts among companies as to how stakeholders think they gain competitive advantage. Porter (1996) suggests: A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at lower cost or do both.
The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.
The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.
A business model design and innovation is the value a company brings to the market. Osterwalder, & Pigneur (2010) mentions four mapping four primary areas of environment, market forces, industry forces, key trends, and macroeconomics forces (p. 200). Each one of these four factors are important to a business model. The innovation that is required to make each mapping to become a success is much needed.
Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).
Business model defines the process by which the business enterprise or an organization creates, delivers and captures the value, which excites the customer to pay for the value provided and converts those payments into profits. In simple terms business model is a simpler representation of a business logic which represents what an enterprise offers to customers, how it reaches them, through which activities, resources and partners it achieves the value and how it earns money.
This research paper is analysis and overview of the business model canvas to highlight its genesis and features. The model will be compared to other business models to help strategic managers make a rationale decision. This paper underlines the advantages and the limitations of the of the business model canvas. The goal is to understand and to apply in the work environment the concept of the business model canvas.
A business model describes the rationale of how an organization created, delivers, and captures value. It is an outline of the general details of the operations of the business. Business Model is a strategic plan that is used by a company while setting up in order to generate revenue by offering its services products. Every company has its own business models depending on the product and services it offers. The company either choses from the existing business models or invents its own business model to generate maximum profit. The company’s marketing and sales are designed based on the business model. This includes other determinants like pricing of the goods, choice of the sales channels, identifying
systems to maintain its cost structure which is a crucial component of its profit formula. Together with
A business model is a company’s perception and conception of how the set strategies that a company pursues
However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.
This book will help you to understand the process of setting up a small business,