Теоретичні та прикладні питання економіки. Збірник наукових праць.

Випуск 2 (49)

УДК 330.3

JEL L10,L14, L120

ORCID ID https://orcid.org/0000-0002-7638-2098

DOI https://doi.org/10.17721/tppe.2024.49.8

Alina Magomedova

PhD in Economics, Associate Professor

THE NATURE OF BUSINESS MODEL OF A COMPANY

Today, companies place significant emphasis on refining and evolving their business models. This attention is largely driven by rising global competition and rapid technological change, particularly accelerated by the COVID-19 pandemic, which has prompted businesses to adapt quickly to new market conditions. Companies must grasp fundamental aspects of business model development to navigate such challenges effectively. However, the concept of a «business model» varies considerably, as different enterprises interpret and adapt it based on their lifecycle stage, sector-specific challenges, and market needs. Because of this, extensive literature exists, offering numerous definitions and often correlating the term with other economic categories. Consequently, there is a growing need to deepen the study of the economic substance of business models by exploring diverse academic viewpoints and clarifying their core functions.

Organizational viability and long-term success are intimately tied to their capability to generate and retain value. Therefore, each commercial enterprise continuously focuses on constructing, optimizing, and evolving its business model to remain competitive. Strategic priorities can differ widely, depending on factors such as industry characteristics, market concentration, regulatory frameworks, organizational age, and customer base. For example, younger businesses might prioritize market penetration, while older companies may emphasize diversification. Government regulations can also influence the direction of strategic development, particularly in heavily regulated sectors.

Furthermore, a business model is never a static or completed construct. It is inherently dynamic, requiring ongoing refinement to adapt to changing market demands, emerging technologies, and customer needs.

Keywords: business model, functions of the business model, competition, strategy, value proposition, monetization.

Full Text: PDF

DOI: https://doi.org/10.17721/tppe.2024.49.8