European Proceedings Logo

Exploring A Business Model And Its Practical Implementation Based On Case Study

Table 1:

Components Foundation level Proprietary level
Component 1.Factors related to value offering Product manufacturing (Ceramic Brick);Standardized offer;Broad range of assortment;Deep assortment coverage;Direct sales;Sales through intermediaries Product with delivery (on orders, just in time);High quality product;Over 40 types of bricks and ceramic products;Direct Sales (B2B): construction companies;Sales through intermediaries (B2C): construction bases, hypermarkets, dealer clubs, retail chain “The Brick Center”
Component 2.Market factors B2B and B2C market (corporate and individual clients);Regional market (St. Petersburg and Leningrad region);Broad market:-construction companies,-individual developers;Relationship building (B2B) Managed development (growth):retention of regional market share and seizing opportunities for growth (regional expansion)B2B (80% of the market), B2C (20% of the market);Close trusting relationships on a long-term, mutually beneficial basis (for corporate clients)
Component 3.Internal capability factors Own production / Operating systems;Mass production;Modern equipment;Advanced technology Production specialization (in factories);Total capacity - 290 million bricks per year;Innovation in operating systems;High efficiency of factories capacity utilization;Production planning optimization;Effective marketing and sales system;Accepting orders on the internet
Raw material base;Intangible assets;Investment resources Own clay quarry ; Brick brand, trademarks ("Ceramics", "Rauf");Access to corporate investment sources;Administrative resource
Developed network of cooperation and partnership;Key role in business network Joint implementation of orders for complex projects;Complete set with various types of building materials
Strong corporate culture;Personnel motivation systems Promoting innovations and entrepreneurship (at all levels);Provision of employees:- professional career growth,- social protection programs,- salary is above industry average
High professionalism of management;Qualified engineering staff Sharing knowledge, information and best practices;Policies for the hiring and retention of valuable employees
Component 4.Competitive strategy factors High quality product;Broad range of assortment;Image of the “company with which it is convenient to work”;Stability / reliability Differentiation is achieved through:- high quality product;- variety of assortment;- stability, reliability, uninterrupted supply;- offer a comprehensive solution to customer problems (a wide range of building materials)
Component 5.Economic factors Fixed revenue sources;Flexible prices;High operating leverage;High production volumes;Medium margins Product sales (95% of revenue);Delivery and related products (5% of revenue);Price level (between high and medium);Economies of scale;Profitability growth
Component 6.Growth/exit factors Growth model Focus on growth opportunities that are consistent with business model
< Back to article