Business Model Designing is a sophisticated way to design your business structure so that the business cycle can generate maximum revenue by reducing cost and by implementing best effective way. This process requires sufficient amount of research and strategic databases. This is a long assessment before investing in a venture but effective business model design can bring outstanding output for any types of business. Entrepreneurs who are planning to establish a successful venture need to understand the business model first. A sustainable business model requires an approach which shows how a value proposition can establish a profitable organization. It is highly recommended for business leaders and top notch executives of an organization to understand the business model of their organization so that they can prepare a contingency plan for crisis moment.
According to Harvard Business Review Companies can modify their business models to generate new virtuous cycles that enable them to compete more effectively with rivals. These cycles often have consequences that strengthen cycles elsewhere in the business model. Until recently, Boeing and Airbus competed using essentially the same virtuous cycles. Airbus matched Boeing’s offerings in every segment, the exception being the very large commercial transport segment where Boeing had launched the 747 in 1969. Given the lumpiness of demand for aircraft, their big-ticket nature, and cyclicality, price competition has been intense. Changing strategic choices can be expensive, but enterprises still have a range of options to compete that are comparatively easy and inexpensive to deploy. These are tactics—the residual choices open to a company by virtue of the business model that it employs. Business models determine the tactics available to compete in the marketplace.