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.