A bar or bike shop business FORUM DESCRIPTION This week we look at tailoring bus

Question

A bar or bike shop business

FORUM DESCRIPTION This week we look at tailoring business models to existing conditions and different industry environments. But I thought that in starting a business, or in fact growing a business you need to "stand out from the crowd You need to distinguish yourself and your business So just how important then in your opinion, is tailoring the business models? Select a business that that either already exists, or you would love to start, and support your thoughts Show us why it is, or is not, important to tailor the models Grading information

Explanation / Answer

Answer: Innovation is the key for the survival of the new businesses. The competition at the marketplace is increasing and therefore in order to survive the new businesses need to create a differentiation from the others. As there are many options available for the customers and they can choose from them hence it is essential for the new businesses to provide services and products which suit their needs in a better way as compared to the competition. Operating a bar is a traditional business and has been in existence from a long time. Generally all the bars offer same type of product and services to the customers but still the customers differentiate between their services based on various factors. For creating a difference bars need to develop and customize their business models in order to suit the needs of their target customers. For this purpose tailoring their business models hold a major key.

The choices and preferences of the people constantly change and therefore the businesses require changing their models as per the changing needs of the customers. Traditional business models do not work in a dynamic market like we face currently. Often there are many bars in a city and even in a small area. Thus in order to attract customers a bar needs to be different from the competition. The bars who can tailor their business model in order to suit the needs of their customers can create a competitive advantage. By analysing the customer’s needs and by customizing the business model accordingly, the organization can change the business processes and bring a change in the way they deliver their services. Tailoring business model can also help the bars to save wastages. This increases the focus on customers and their needs and creates a differentiation at the marketplace. This is essential for the business like bar as they have many “me-too” competitors who offer same or similar services. Without differentiation created through tailoring, the new bar business cannot stand out of the crowd.

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