Which of the following is true of a company's business model?
A) It zeroes in on the customer value proposition and its related profit formula.
B) It explains why the customer value proposition takes precedence over the related profit formula to generate optimum revenues.
C) It details the ethical and socially responsible nature of the company's strategy.
D) It explains how it intends to achieve the same market position as a rival.
E) It is termed a winning model if it passes any one of the three strategy tests.

Question

Quizplus · Accepted Answer

A company's business model is focused on defining the customer value proposition and the associated profit formula. This involves identifying the target market, understanding customer needs, differentiating from competitors, and determining the revenue streams and cost structure. B is not true because the customer value proposition and profit formula are both important for generating revenues. C and D are not necessarily part of the business model. E is partially true but not complete, as a business model should pass all three tests - fit, competitive advantage, and performance.

Which of the Following Is True of a Company's Business