The rationale of how an organization delivers creates and captures value that is social, economic and cultural can be described in its business model. The construction of the business model is also a part of the business strategy. The term business model in practice and theory can be used for a wide range of formal and informal descriptions to represent main business aspects that include offering, purpose, infrastructure, strategies, trading practices, organizational structures and operational policies and processes. There have been diverse definitions and interpretations in the business model literature. A systematic analysis and review of manager responses to surveys define business models as the organizational structures designed to enact an opportunity commercially. This design focuses on the use of coherence and narrative in business model mechanisms by successful firms established by entrepreneurs. Some of the most typical business models include collective business models, brick- and click business model, direct sales business model, cutting out the middle men model and so on (Petrovic, Kittl & Teksten, 2001).
The contrast and comparison between the divergent business plan models can be found in their implementation in which, once it is established it can implicitly or explicitly employ a strategic model that common types of business can use to describe the value creation, architecture, delivery and mechanisms that are relevant for the business enterprise success. In addition, the way they are used to differentiate the way the value delivery, profit conversion and payment of the customer is done by the implemented business enterprises is another aspect that is common among them. In this manner, they can be used to highlight the hypothesis by the management on the customer’s needs, and the way they can organize and address the organizations’ requirements. Contrast on the model implementation is on how they are used to explore future product or service implementation by exploring, classifying and describing the business model. They defer on their creative operation recipes, this implies that they have to be careful in the specific choices and a single model can not be used for all organizational cases. Some strategies also require expertise to be effective and their relevance may not be easily accessible to all, like in the case of internet (George & Bock, 1997).
The overall limitations of some of the business models include high cost of implementation in the business plan, or organization management, like in the cases where the business model requires a direct seller to be able to generate revenue; the high cost would be on the inventory. This is because the customers tend to be less consistent and funded, which will raise the expenses for the responsible firm. Another limitation is on the over reliance on the presence of middlemen to move the product along the supply chain and limiting the company’s ability to take make innovative changes and take long term risks. The recognizable strength that is generally common to the business models is that unique business models if implemented in a company help to advance its competitive advantage, mainly in its production of effective goods and services as compared to competitors. It also helps to establish skilled employees or better customer interaction services, since the competition cannot copy the model and this allows them to get more profits (Weill & Vitale, 2001).
Microsoft Project business model and other models include common advantageous aspects, like the strategies implemented to manage the projects. Example in an MS project, where there are many management tools that are flexible to implement, while in the other strategies the implemented models, like brick-and click one, have to be specifically tailored to deal with the necessary project. Through these tools and strategies, the management can estimate, plan, monitor and facilitate the resources to undertake the projects. The features in both strategies help in the management of errors in that they can be recognized early and addressed before they become serious. An example is MS project and its inbuilt features that can be upgraded to fit a project or collective business models that can correct any problems through the joint professionals. Some of the business models are cheap to establish and manage, like the cutting out the intermediary model, which maximizes the profits of the company due to the direct sales. In the MS project, it is cheap in the implementation, since it is automatic and its implementation is self-sustaining.
The main differences between the two strategies would include aspects like the MS project and other models, like the brick and click model or freemium business model, would require some sort of training in order to be implemented effectively. This allows for some models to be duplicated, which would affect their efficiency in the market. Some other factors like cost also affect the model implementation. An example is on the recurrent upgrading programs and training of administrators of the MS project or direct sales models, which would require some resources in order to be implemented. Compatibility issues would also present a challenge in both cases. For instance, in the MS project tools, the pre-installed programs would find it hard to work with latest versions of Windows Vista, UNIX operating system, or Windows 7. The same case would also apply to models like brick and click business models, which would not be compatible with the clients existing operating systems and due to this, aspects such as collaborations cannot be effected (Chesbrough & Rosenbloom, 2002).
The most appropriate business plan for providing or promoting screening activities for an effective mobile health promotion program would be by implementing a strategic plan that involves industrialization of service in the model. The justification of using this strategy would be that through it there would be an appropriate marketing of the required health services and strategic management of the health services that threaten the services provision from an industrial perspective that is subject to the optimization procedure of the health organization. This can be possible by treating each service encounter as an isolated event, mainly by systemizing them through consistency, planning, capital-intensive investment and optimal processes that are involved in the industrialization of services model (Burkhart, Krumeich, Werth, & Loos, 2003).
External and internal factors can require the business model to make permanent changes. Changes in customer demands and technology can force changes in goals and methods in businesses in order to be successful. In cases where complete business revamp or changes in business need to be made, a thorough review of the strategies and plans is necessary. Through such implications, a business can be able to stay ahead, as in the case of business models that implement new technology capabilities such as the network effects, collective intelligence, possibility of self-improving systems and user generated content. Business models can also be used as modes of changing existing structures of pursuing new opportunities and creating new organizational structures through stressing on the model design logic.