A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products and details of financing. There are essentially nine different components to any business model; two of these are customer segments and value propositions. Customer segments focuses on which section of the market a business chooses to cater for, while value propositions is defined as solving customer problems and meeting customer needs, thereby creating value. All nine elements of the business model canvas must be interdependent in order for a business to be successful; thus, the importance of a clearly delineated customer segment for the effective communication of a value proposition is highlighted. A
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This led to consumers being unable to identify which products best suited their needs, causing sales to fall and ultimately creating failure within the business. Nokia’s fall in the market began with the introduction of the iPhone in 2007, when Nokia failed to keep up with the new and innovative technology available at the time. Further to this, in 2013 Nokia reached a 13-year low in sales, which had dire consequences for the company having already struggled to stay competitive with thriving phone companies in the market, namely Samsung and Apple. In 2014, Microsoft entered into partnership with Nokia, presumably to save the biggest Windows Phone manufacturer from going bankrupt and to assist Nokia in regaining their previous position in the market. The goal of this partnership from Nokia’s perspective is evident in: “To help us achieve our mission, Nokia has formed a strategic partnership with Microsoft that will, we hope, see us regain lost ground in the Smartphone market.” Following this, Nokia introduced a new series of smartphones called Nokia Lumia, however this was unsuccessful in regaining market share. What was most worrisome during Nokia’s downfall was the fact that the business was continually updating their product line in an attempt to keep up with the market, yet the business continued losing sales and falling in value. The effects of the Lumia series’ failure in the market are evident in the 6.1% fall in stock price, having furthered hindered investor confidence in the
This led to consumers being unable to identify which products best suited their needs, causing sales to fall and ultimately creating failure within the business. Nokia’s fall in the market began with the introduction of the iPhone in 2007, when Nokia failed to keep up with the new and innovative technology available at the time. Further to this, in 2013 Nokia reached a 13-year low in sales, which had dire consequences for the company having already struggled to stay competitive with thriving phone companies in the market, namely Samsung and Apple. In 2014, Microsoft entered into partnership with Nokia, presumably to save the biggest Windows Phone manufacturer from going bankrupt and to assist Nokia in regaining their previous position in the market. The goal of this partnership from Nokia’s perspective is evident in: “To help us achieve our mission, Nokia has formed a strategic partnership with Microsoft that will, we hope, see us regain lost ground in the Smartphone market.” Following this, Nokia introduced a new series of smartphones called Nokia Lumia, however this was unsuccessful in regaining market share. What was most worrisome during Nokia’s downfall was the fact that the business was continually updating their product line in an attempt to keep up with the market, yet the business continued losing sales and falling in value. The effects of the Lumia series’ failure in the market are evident in the 6.1% fall in stock price, having furthered hindered investor confidence in the