TEchNOLOGy TRaNSFER MODEL - Javna agencija

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BUSINESS MODELS
• Market development options include the pursuit of additional market segments or geographical regions. The development of new
markets for the product may be a good strategy if the firm’s core competencies are related more to the specific product than to
its experience with a specific market segment. Because the firm is expanding into a new market, a market development strategy
typically has more risk than a market penetration strategy.
• A product development strategy may be appropriate if the firm’s strengths are related to its specific customers rather than to the
specific product itself. In this situation, it can leverage its strengths by developing a new product targeted to its existing customers.
Similar to the case of new market development, new product development carries more risk than simply attempting to increase
market share.
• Diversification is the most risky of the four growth strategies since it requires both product and market development and may be
outside the core competencies of the firm. In fact, this quadrant of the matrix has been referred to by some as the »suicide cell«.
However, diversification may be a reasonable choice if the high risk is compensated by the chance of a high rate of return. Other
advantages of diversification include the potential to gain a foothold in an attractive industry and the reduction of overall business
portfolio risk.
2.4.8 Human Capital & Corporate Culture
This area of a business model deals with the people within an organization and the basic assumptions and beliefs that are shared
by members of an organization, that operate unconsciously and define in a basic taken-for-granted fashion an organization’s view of
itself and its environment. The following main questions should be considered for your analysis:
• How are human resources handled?
• What‘s special about our corporate culture?
• What‘s the leadership and management style?
One way of analyzing the corporate culture of an organization is to reflect on its cultural web. The Cultural Web identifies six interrelated
elements that help to make up the »paradigm« - the pattern or model - of the work environment. By analyzing the factors in
each, you can begin to see the bigger picture of your culture: what is working, what isn’t working, and what needs to be changed.
The six elements are:
1. Stories - The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize
says a great deal about what it values, and perceives as great behavior.
2. Rituals and Routines - The daily behavior and actions of people that signal acceptable behavior. This determines what is expected
to happen in given situations, and what is valued by management.
3. Symbols - The visual representations of the company including logos, how plush the offices are, and the formal or informal dress
codes.
4. Organizational Structure - This includes both the structure defined by the organization chart, and the unwritten lines of power and
influence that indicate whose contributions are most valued.
5. Control Systems - The ways that the organization is controlled. These include financial systems, quality systems, and rewards
(including the way they are measured and distributed within the organization.)
6. Power Structures - The pockets of real power in the company. This may involve one or two key senior executives, a whole group
of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations,
and strategic direction.
2.4.9 Practical Example
In the graph below you can see the current business model of Hugo Boss. The strategic core is highlighted in grey, while all the other
major components from the 7-Cs are arranged around the core.
Graph 5: The business model of Hugo Boss
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