Competitive advantage business models

Chemical Leasing builds on the concept of the Cleaner Production approach as it is a preventive, environmental, service-oriented business model that aims at improving overall efficiency, enhancing environmental performance and increasing the competitive advantage of industry. 

Motives for the introduction of the new business model Advantages in business competition. ... 

First, let us recall the shortcomings of the sales concept in face of information asymmetries. As stated in section 2, the traditional selling of chemicals, firstly, does not prevent over-consumption. In a competitive market it is rather the aim of the sales concept to sell as much commodities as possible to increase the profits of the sellers. A sales contract consequently provides no incentives to reduce such adverse effects of chemicals on human health and the environment that are related to the quantity of chemicals in use. Secondly, the sales concept provides no incentives for transferring accurate knowledge on the efficient application of the chemical, as this lowers the profits of the sellers. In contrast, Chemical Leasing business models are capable to effectively deal with problems of information asymmetries. Based on the findings of Ohl and Moser (2007), both models introduced above (A and B) show comparative advantages as follows ... 

The chemical industry has to revitalize the drivers of innovation to proactively generate sustainable competitive advantage. Innovative breakthroughs can happen in a variety of dimensions, including not only new compounds, applications, and processes, but also new services and business models. 

So how will the biobased economy actually happen Erickson believes that radically new business models will appear that challenge traditional companies, but unique opportunities for the fast movers will be created. Companies that are early adopters of industrial biotech will gain a competitive advantage in the marketplace, said Erickson. 

All four theories are plausible, but each has different impHcations for what companies might do to gain competitive advantage in a cycHcal commodity industry. It would therefore clearly be helpful to know which (if any) of these effects has a dominant influence on the volatility of prices and margins. We built a business dynamics model to attempt to find out... 

So if cyclicality is here to stay, the big question for managers in the chemical industry is can an individual company manage it to gain competitive advantage To look for possible answers, we used an expanded version of the business dynamics model of a cyclical business to explore how returns might be improved through active cycle management. 

Of course, true competitive advantage is usually the result of making coordinated innovations on multiple fronts. Through the combination of its iPod and iPhone products with its iTunes business model, Apple created about 70 billion in shareholder value in just three years. Amazon s business model innovation of cutting out the brick-and-mortar store is coupled with service innovations such as 1-Click, Recently Viewed Items, Customer Reviews, and Books You Might Also Like. This is a taste of how these companies have innovated across the board. 

When done right, it enables new business models, creates competitive advantages in the marketplace and enhances brand equity for long-term customer value. 

In the balance sheet trends against peer groups, Dell and Apple both built a competitive advantage through process innovation. Today, supply chain excellence is no longer about operational excellence and costs instead, when done right, it defines new business models and drives new forms of value. 

The value chain is a systematic approach to examining the development of competitive advantage. The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. To analyse the specific activities through which a firm can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities. A value network is a business analysis perspective that describes social and technical resources within and between businesses (Porter 1985). 

Today, there are more and more companies that continually look for competitive advantages in order to get a better position in the market. One way may be by aligning strategic/tactical decisions toward the optimization of an overall business performance metric. In this chapter, it is presented a novel approach to address this challenge. A MINLP model is developed, which addresses the network design and strategic marketing decisions of the SC in tandem. Then, this model is coupled with the financial formulation presented in Chap. 2, which allows the calculation of shareholders value by the discounted-free-cash-fiow method (DFCF). 

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