Business Model and Supply Chain Strategy

Business Model and Supply Chain Strategy

Introduction

Every successful organization has some reason behind its success. One of such reasons is known by an effective business model which is designed to provide maximum value and satisfaction to all the stakeholders (Johnson, Christensen, & Kagermann, 2008). One such successful organization known throughout the world runs by the name of Intel. Intel's success is not merely a coincidence but the result of untiring managerial and planning efforts including the development of a highly efficient supply chain. In order to better understand about Intel and the role of business model and supply chain strategies in its success; an in depth discussion regarding the relevant factors is required.

Discussion

Business Model

A business model is usually defined as the way in which any Organization develops, delivers and captures value. Moreover, a business model is not merely formed by a single person but is a result of extensive strategy formulations and planning. In the case of Intel, the business model includes two sides, one which works to develop and deliver values; whereas the other which works to capture value.

The value developers include the partners and the entire supply chain of Intel including suppliers and supplier's suppliers. These players work simultaneously to develop a value chain where value is added in every next step of the supply chain. Intel believes in making all the major vendors and retailers its partner in order to increase the brand value to maximum. Apart from that, Intel also deals its suppliers as partners to gain competence (Chesbrough, 2007).

The second part of the business model includes those from whom Intel captures value in form of revenues. This part of the business model includes the selection of Customer segments and customer relationship management. Intel has divided the market into different customers segments depending ...