PART B: Business Model Innovation

PART B: Business Model Innovation

Overview

The modern world, with globalization at its core, has changed dramatically over the years. The various economies spread all over the world are very closely interlinked and, as a result, governments, industries as well as companies are likely to work together; which was quite unthinkable just a few years ago.

The major contributing factors towards this global change in the business world are demographic shifts (these comprise of population explosion, the ever increasing age gap between the youth and the elderly, increasing urbanization in addition to a fast growing middle class), modification the global power structure (this refers to the increasing relationship amongst the public and private sector), and disruptive innovation (which consists of changes and innovations in technology affecting the society and businesses).

These factors are major drivers for global changes throughout the business community, these global trends include Shifts in demographics (thereby transforming the global workforce), ultra fast innovation in technology (in effect creating a smart and mobile world), government enhancing relations with the private sector businesses, recovery pursued by Global Banking through transformation, technology becoming a tool capable of determining the competitive advantage and new markets (that have emerged globally) increasing their global presence and power.

These trends have changed the methods that businesses have adopted in order to remain vigilant and survive in a fast moving, highly competitive business world. The organizations that are most likely to survive can be easily discovered from amongst the others, these organizations are the ones that are continuously involved in the monitoring of trends in the external environment, are dedicated to talent farming activities from all over the world without any discrimination or segregation being involved, and are swift in adopting and implementing new and improved technology as soon as it is discovered and made available to them. It does not matter to them that they belong to a certain industry; they are always on the lookout for innovations even beyond their industry and competitors, this enables them to adapt to local environments in an attempt to create a global workforce.

These organizations are continuously involved in changing and adjusting their supply chain management with a view to get a strategic advantage and cutting costs dramatically. Their growth plans are developed in view of their vision of the future goals and objectives (i.e. future strategy).

Concepts with room for invocation and improvements

Apple Inc. is a huge corporation, and based on the previous analysis of its weaknesses and business model, we can identify certain components of its business model that need to be innovated or strengthened.

Of their major weakness is the fact that, their products are somewhat different when compared to other products (that belong in the same category as their products). The customers are not so enthusiastic for purchasing the products of Apple Inc., because the products as well as the applications developed by Apple Inc. are not compatible with other electronic devices (or products) (Magican, 2013). This represents their business model component which focuses ...