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Strategic innovation | Business model efficiency

I today retake the analysis of the different elements that compose a concept of business and how we can introduce modifications that more innovators do. Within the group that makes reference to the capacity of generation of wealth of the model, we found like first element the efficiency of the model, is to say if by the product that we do our clients are arranged to pay, direct or indirectly, more money than the one than costs us to us to produce it.

This does not mean that to be efficient the costs must be the minimums, but that is to be in consonancia with the product or service which we are offering, so that the price that we must put does not exceed which the potential clients consider fit to the type of product or on watch that we are offering. A clear example of efficiency of the model is the one of the airline companies called of "low cost", since changing several elements of the process of production of the service and of the conception of the product they have obtained, by a side to have the lowest prices of the market and the other the elevated margins more of the industry. In the same case they are the companies that offer service to the segment of clients who want more comfort and luxury. They have fit its model of efficiency to this segment and obvious their costs more are elevated, but they continue having high margins because their clients are arranged to pay this difference. So that the model is more efficient does not only serve to reduce costs, but to radically change to the concept and the processes.


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About the Author

Francesc Llobet is an Internet entrepreneur and a strategy business consultant in the fields of innovation, internet marketing and ebusiness.
Based in Barcelona, Catalonia (European Union), he is the founder of Sappiens.com, The Knowledge Community and Founder and CEO of Adverstore.com, Advertising for everyOne!. He maintains InnovationThink, eMarketingThink OnlineAdvertisingThink and A Startup Story, blogs where he writes on Innovation, Internet Marketing, Advertising and Startups. To know more..

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