The business model firstly defines the strategy of the business i.e. shaping the foundation for how executives make decisions about the daily operations of the business, those opportunities to be pursued and the resulting market potential of those opportunities. It also Involves the way a company differentiates its offerings from that of its competitors Applegate, Austin, & Soule, 2009()Ã¯Â¿Â½.
These choices define strategic positioning along four elements. Firstly market positioning determines which customers you will serve, deciding on how you will meet their wants and needs and the channels that you will utilize to deliver this to your customers. Secondly product positioning focuses on the services and products that you choose to offer together with the features it will comprise of and its pricing. Thirdly the business network positioning of the company determines a company's role in addition to the activities it carries out within a network of suppliers, producers and partners.
Lastly boundary positioning defines what your strategy will not cover i.e. the markets, products and businesses that you will not enter Applegate et al., 2009()Ã¯Â¿Â½.
Now to achieve strategy, you have to either possess or acquire the capabilities and resources to not only execute your current strategic plan but also utilize it as a platform for future growth. These capabilities define the assets of the company and the efficiency with which these assets are employed. This strategy together with these capabilities brings value to not only the company, but the customer as well.
Jamcracker's foundation began with Exodus. The Jamcracker model is based on the ASP concept but they are not exactly an ASP. Their unique business model combines application services from various ASP partners through its IT management platform to provide end users with an integrated service package that includes technical support and billing. This...