The Role of Business Model Innovation in the Emergence of Markets: A

Missing Dimension of Entrepreneurial Strategy?

Samuel S. Holloway & Helder J. Sebastiao

The article was all about the business model in which it can greatly affect a

certain business entity by applying all related concepts of a business. As

stated, entrepreneurs who successfully introduce new business models that

significantly alter existing market preferences and structures are viewed as an

anomaly; their success is attributed to the strategic failure of incumbents. The

article explained further what is a business model. Business models play a

pivotal role in emerging markets because they are a mechanism for

integrating an individual firm’s value chain (Porter, 1985) or value network

(Shafer, et al., 2005; Voelpel, et al., 2004) within the larger business

ecosystem (Leibold, et al., 2002). Successfully implementing a business

model requires the integration of resources, partners, suppliers, customers

and other agents into cooperative networks that evolve with market conditions

(Leibold, et al., 2002; Sarasvathy & Dew, 2005; Voelpel, et al., 2004).

Thus, for me besides from business plan, a better business model must be

implemented by an entrepreneur for him/her to follow standards that can be

beneficial in his/her starting or growing business. As an entrepreneur, he or

she can apply different business models that are suitable for the business that

can also be a competitive advantage.

According to Kopp (2020), business models are important for both new and

established businesses. They help new, developing companies attract

investment, recruit talent, and motivate management and staff. Established

businesses should regularly update their business plans or they'll fail to

anticipate trends and challenges ahead. Business plans help investors

evaluate companies that interest them.

References:

Kopp, C. (2020). Understanding Business Models. Investopedia.

https://www.investopedia.com/terms/b/businessmodel.asp#:~:text=Business
%20models%20are%20important%20for,anticipate%20trends%20and
%20challenges%20ahead.
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