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The objective of this essay is to develop your understanding of the business model as a concept and how a theoretical understanding of business models can be used to explain the exploitation of innovations by organisations in real-life

01 / 10 / 2021 Essays

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The objective of this essay is to develop your understanding of the business model as a concept and how a theoretical understanding of business models can be used to explain the exploitation of innovations by organisations in real-life. To successfully complete this assessment, you are required to explore the academic literature on business models and to write an essay addressing the following topic:

“Let’s face it: business models are less durable than they used to be. The basic rules of the game for creating and capturing economic value were once fixed in place for years, even decades, as companies tried to execute the same

business models better than their competitors did. But now, business models are subject to rapid displacement, disruption, and, in extreme cases, outright destruction.”

(de Jong, M. and van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation, McKinsey Quarterly, July 2015. Retrieved from: www.mckinsey.com.)

Specifically, your essay is required to:

• Clearly define the terms ‘business model’ and ‘disruption.’

• Identify an industry, company or product/service that has recently (last 7 years) been disrupted and outline the ‘new’ business model (the one that disrupted), as well as the ‘existing’ business model (the one that was disrupted)

(Identitfied Topic: APPLE ITUNES vs SPOTIFY) – How Spotify (Free Streaming music) Disrupted Itunes (Paid download music) (Identitfied Topic: APPLE ITUNES vs SPOTIFY) – How Spotify (Free Streaming music) Disrupted Itunes (Paid download music)

• Critically compare the two identified business models with reference to relevant literature and by so doing clearly highlight the reasons why the new business model disrupted the existing business model.

• Conclude by briefly discussing the significance of your findings for the future of business models. You should include at least 5 references and no more than 20 references. All sources must be highly credible and fully



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