Student Weekly Blog (7)

This week I will update my blog by write the new student weekly blog. Besides that, my group member and I will look on our stall which sold the raya card and dedication for people at the Varsity Mall from 6 until 16 September. We will follow the schedule which arrange by our group leader to look on our stall.

Our group had accomplished the weekly report of our business activity and done the presentation in the class. I also had sold out some raya card to some student in our residential hall, Muamalat, by go to room by room. They like to buy the card to their friend, parent and partner.

In the end of this week, I had learned about the business model. Model is a plan or diagram that is used to make or describe something. We need to draw or discuss it out. We should understand business model, by look the business model, we will know what is going on when do the business activity. A firm’s business model is its plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates. The term of business model is used to include all the activities that define how a firm completes in the marketplace.

I also knew the Dell’s business model. Nowadays, there are no customer uses the traditional model. We can draw out the lifecycle of our product, so we can more know about our product. Under the Dell’s business model, the traditional manufacturer needs to follow the step to do the business model. Firstly, they need to do the forecasts demand, then obtains subcomponents from suppliers, makes basic components. The assembles need to complete PC , then stores PCs in warehouse, ships PCs to retailer, PCs sit on retailer’s shelf until sold and do the in hands of consumer. While for the Dell’s approach to selling PCs, customer places order via phone or internet, and contract manufacturers instantly view order information and ship component parts. Dell assembles computer from component parts as they arrive and maintains customer relationship, computer is shipped “direct” to customer via UPS or FedEX, and do the in hands of consumer.

There are four components of a business model. First one is core strategy; under it are business mission, product or market scope, and the basis for differentiation. Second one is strategic resources; under it are core competencies and strategic assets. Third one is partnership network; under it are suppliers, partners and the other key relationships. The last component of business model is the customer interface. It includes the target customer, fulfillment and support, and the pricing structure.

A business model is important because it is very useful for a new venture to look at itself in a holistic manner and understand that it must construct an effective “business model” to be successful. Everyone that does business with a firm, from its customers to its partners, does so on a voluntary basis. As a result, a firm must motivate its customers and its partners to play along. It is essential for a new venture’s success to close their attention to each of the primary elements of a firm’s business model.