Project Formulation and Evaluation Case Study 2: Reinventing your business model

May, 28th 2015

INTRODUCTION In the future, the quest for sustainable advantage may well begin with the business model. The greater frequency of disruption and dislocation in many industries is shortening business model lifecycles. New global competitors are emerging. Systemic risk is growing as global business becomes interconnected. Social and ecological constraints on corporate action are emerging. All these factors require business to bolster and accelerate innovation. Business model innovation means more than a brilliant insight coming at the right place and the right time, it confers a reliable competitive advantage. INDICATIONS

1. Read the article “Reinventing Your Business Model” by Mark W. Johnson, Clayton M. Christensen, and Henning Kagermann.

2. Answer the assignment questions. Generate a pdf file. 3. Upload your work on Sidweb by Tuesday 2nd June at 11:55 pm.

We will discuss the case during the next class. ASSIGNMENT QUESTIONS Select ONE of the following multinational companies (MNC):

1. Describe the business model of the company using the 4 elements of a successful business model characterized in the article.

2. Compare it to the “common” business model used in the industry until the moment that company emerged. Identifying the main differences and innovations proposed.

Right now, more than 20.000 multinationals are operating in emerging economies. According to The Economist, Western multinationals expect to find 70% of their future growth there – 40% of it in China and India alone:

3. What are the main barriers multinationals companies will have to face when entering this kind of economies? How will they adapt?

4. Using the same MNC you have chosen for questions 1 and 2, describe how this company would adapt to enter an emerging market. In case it is already operating in these economies, describe, if any, the main differences between the business models in emerging and western countries.

Note 1: In order to answer the questions, you may need to look for information on the Internet about these enterprises and their businesses.