Change business model.

What Is a Business Model Change?

Entrepreneurs often struggle with trying to understand the concept of business model, which may seem abstract or technical. It can be simplified down to two basic components: how the company plans to generate sales revenue and the operational factors that will enable it to reach and maintain profitability. As the company proceeds from the startup stage, the model often changes due to new opportunities, new competitive threats or simply because the company learns more about what its customers truly need.

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Up-biz.net

Defects in Original Model

One of the first tasks for a startup company is to design its business model. Many times this is done with limited knowledge of the market in which the company will operate — the management team may not even be certain the target customers will be willing to purchase the product. This original business model may prove to be flawed and changes must be made to it for the company to generate sales momentum.

Change in Value Proposition

Value proposition describes the collective benefits customers receive from using a product or service. The greater the value the customer perceives, the greater the chance he will choose to make a purchase. Companies don’t always know what is most important to their target customers. A restaurant may start with the value proposition of providing the lowest cost meals in its food category, but learn that what its customer base really wants is speedy service for takeout orders at noontime or after work. The business model will then be changed to focus on improving the production efficiency of the kitchen and reducing the food preparation time. The meal prices under the new model could go up.

New Revenue Opportunities

The company’s business model specifies what are the target customer groups. Marketing strategies are then formulated to reach these groups and persuade them to purchase from the company. New revenue opportunities often emerge as the company’s model proves to be successful. Management discovers that the products or services created for one group may be useful for these other groups as well. The business model is modified and expanded to include the new markets the company intends to reach.

Change in Competitive Environment

A business model is designed to help a company build a competitive advantage. Competitors respond by constructing their own models to create their own advantages. When an old model puts a company in an unfavorable competitive position, it has to be changed. This could involve a radical change such as discontinuing a product line that is no longer selling well, or it could be a matter of adding elements to the value proposition so the customers perceive they are getting more for their money than they did before.

Company Evolution

As a company evolves from the startup stage to maturity, the business model usually changes with it. Companies might begin with a low price model to obtain its first customers. A new supermarket in an area could have a grand opening period when their prices are extremely low to get their competitors’ customers to come and see what the new store offers. If the new store has a superior value proposition in other areas, such as a much better selection of meat and produce, the business model can gradually be changed to prices that are comparable with competitors rather than substantially lower.

Change business model.

What Is a Business Model Change?

Entrepreneurs often struggle with trying to understand the concept of business model, which may seem abstract or technical. It can be simplified down to two basic components: how the company plans to generate sales revenue and the operational factors that will enable it to reach and maintain profitability. As the company proceeds from the startup stage, the model often changes due to new opportunities, new competitive threats or simply because the company learns more about what its customers truly need.

Up-biz.net black and white logo
Up-biz.net

Defects in Original Model

One of the first tasks for a startup company is to design its business model. Many times this is done with limited knowledge of the market in which the company will operate — the management team may not even be certain the target customers will be willing to purchase the product. This original business model may prove to be flawed and changes must be made to it for the company to generate sales momentum.

Change in Value Proposition

Value proposition describes the collective benefits customers receive from using a product or service. The greater the value the customer perceives, the greater the chance he will choose to make a purchase. Companies don’t always know what is most important to their target customers. A restaurant may start with the value proposition of providing the lowest cost meals in its food category, but learn that what its customer base really wants is speedy service for takeout orders at noontime or after work. The business model will then be changed to focus on improving the production efficiency of the kitchen and reducing the food preparation time. The meal prices under the new model could go up.

New Revenue Opportunities

The company’s business model specifies what are the target customer groups. Marketing strategies are then formulated to reach these groups and persuade them to purchase from the company. New revenue opportunities often emerge as the company’s model proves to be successful. Management discovers that the products or services created for one group may be useful for these other groups as well. The business model is modified and expanded to include the new markets the company intends to reach.

Change in Competitive Environment

A business model is designed to help a company build a competitive advantage. Competitors respond by constructing their own models to create their own advantages. When an old model puts a company in an unfavorable competitive position, it has to be changed. This could involve a radical change such as discontinuing a product line that is no longer selling well, or it could be a matter of adding elements to the value proposition so the customers perceive they are getting more for their money than they did before.

Company Evolution

As a company evolves from the startup stage to maturity, the business model usually changes with it. Companies might begin with a low price model to obtain its first customers. A new supermarket in an area could have a grand opening period when their prices are extremely low to get their competitors’ customers to come and see what the new store offers. If the new store has a superior value proposition in other areas, such as a much better selection of meat and produce, the business model can gradually be changed to prices that are comparable with competitors rather than substantially lower.

How to #Shop #Sample #Sales

Samplicity.it

Back to #Basics: How to #Shop #Sample #Sales

Score the best #deals

“Back to Basics,” we’re here to guide you through life’s most common (and important) #fashion and #beauty concerns. Hot topic: how to #navigate sample sales.

It’s likely that when you think of sample sales, long lines, catfights and overwhelming bins full of crap to rummage through all come to mind first. This might lead you to believe they’re just not worth the effort and resort to paying full price or settling for a paltry end-of-season 40 percent off discount, instead. But that’s for amateur bargain hunters, because #sample #sales are totally worth it if you shop them the right way : instagram.com/samplicity_italia

KNOW THE DIFFERENCE BETWEEN SAMPLES AND OVERSTOCK

Traditionally, “sample sale” means a brand is selling heavily discounted sample designs made for the factories to base production on, press pieces sent out for editorial shoots, designs that models wear on the runway or — the best — one-off, never-produced items. But these days, what’s billed as a “sample sale,” might actually be overstock marked up to 80 or 90 percent off (the best ones), the traditional true samples or a mix of both. 

Shopping samples is great because you might find a current season item for a fraction of the retail price, and the one-off production pieces are extra special finds because no one else on the planet will have them.

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#samplicity

#samplesales

#topbrands

#discounts

But the sample #game has its caveats. #Sizes are limited: usually #running from XS to M for clothing. #Plus, damages run #rampant, so scrutinize each piece carefully before committing. #Overstock pieces will be past-season, but offer size selection and don’t involve the wear and tear. Not that one is better than the other, but it helps to know the #difference.

DO YOUR #RESEARCH

#samplicity

It helps to have a general idea of the full retail and current sale pricing and what brands are popular.

YOUR #OUTFIT IS #IMPORTANT

The term “#dressing room” is a bit of a #hyperbole when it comes to sample sales — if one is even available. It’s usually more of an ad-hoc curtained off area where you’re stripping down in front of other shoppers… of all #genders. More often than not, dedicated shoppers will just unrobe in whatever open space they can call dibs on. So wearing an outfit you can easily fit clothes over, like a cami and skinny jeans, is optimal for protecting your modesty (if you care), but also to remain quick and nimble while you shop. Same goes for footwear: slip-on shoes or boots are ideal for streamlining the fitting process. Also pack light. Many sales make you check your coat and bag at the door, but they might let you in carrying a teeny, wallet-size cross-body.

KEEP AN #OPEN #MIND

Just know that you will have to sacrifice on some levels in #exchange for the #discount.

A #sale might not have that exact item you’re obsessing over, but you could come across something even more #amazing (and #cheaper). Also, be willing to shop off-season. Summer is an opportune time to snatch up #beautiful wool #coats and normally #overpriced #designer #leather jackets on #heavy discount. Finally, be confident in your purchases because returns are usually never an option.

BE STRATEGIC ABOUT TIMING

Not that we condone lying to your employers, but it pays to go #early to score a good spot in line and have your pick of the most (and best) options and the #limited samples, which usually aren’t replenished.

But, on the flip #side, overstock is usually refreshed throughout the duration of a sale and further discounting might happen as the sales progress. So it can pay to #shop later, too. Or, you know, just go #multiple times.

DON’T #FORGET THE #LITTLE #GUYS

The bigger brands offer the high-profile deals, but they also usually involve #massive lines and huge #crowds. So we suggest visiting the favorite #smaller #brand sales, which tend to involve #plenty of #samples, great deals and a lot less pushing.

Plus, samples and stock off season sales are fantastic options for cool brands and loads of samples. Follow instagram.com/samplicity_italia