Wednesday, June 8, 2011

Business Model Conceptualization

By convention, firms have found the conceptualization of their business models a difficult task. This has meant that strategic decisions pertaining to product positioning, and knowing how and when to respond to market opportunities have bedeviled strategy development processes of business and corporate managers alike.
In “The Six Conventions of Corporate Branding”, Simon Knox and David Bickerton are of the view that product branding should be ‘the visual, verbal and behavioral expression of an organization’s unique business model.’

The importance of product branding is that it is the result of organizational processes that communicate a value proposition to consumers that is unique from that of competitors. Product branding is thus to be thought of as the consummate reflection of the configuration of an organization “value chain.”

Enumerating Knox and Brickerton’s six conventions of corporate branding may assist in the process of quantifying a concept that has eluded corporate strategists and, inform techniques in brand management and performance analysis. In doing so, deriving an understanding of the business model arising from strategic planning processes and, to thus be able to, effectively monitor and evaluate performance.
The six conventions of brand management are: i) brand context, ii) brand structure, iii) brand confirmation, iv) brand consistency, v) brand continuity and vi) brand conditioning.

Perhaps these indicators can provide a direct interaction between consumer perception of value offering and the measurement of the performance of internal organization value chain processes.

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