A business model is a bigger umbrella than a business strategy.
The model covers the entire scope of how the company makes revenue and controls costs to gain a profit.
It encompasses every aspect of business direction, goals and strategies.
A strategy is integral in achieving a goal and success.
How is a business model different from a strategy?
A company’s business model is a part of its business’ overall strategy: It is the nuts and bolts behind how the company plans to achieve its goals, such as making a profit. A company can change its business model over time as a part of its profit-making strategy.
What is business strategy and how is it defined?
The definition of business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives. Strategy is management’s game plan for strengthening the performance of the enterprise. It states how business should be conducted to achieve the desired goals.
What is the difference between a business model and a business plan?
Difference between business plan and business model
The business model is the mechanism through which the company generates its profit while the business plan is a document presenting the company’s strategy and expected financial performance for the years to come.
What are the different types of business models?
Some of the basic types of business models are:
- Manufacturer. A manufacturer makes finished products from raw materials.
- Distributor. A distributor buys products from manufacturers and resells them to the retailers or the public.
Photo in the article by “United States Department of State”