Discuss GE Financial Services’s business strategy and business model. Use the terms and elements listed in the example below to describe your (GE) organization’s business model and business strategy. Microsoft and Red Hat Linux: Two Contrasting Business Models,discusses the contrasting business models of Microsoft and Red Hat Linux. Describe the value proposition of each company, and their profit formula. A company?s business model sets forth the economic logic for making money in a business, given the company?s strategy. It describes two critical elements; (1) the customer value proposition and (2) the profit formula. 1. Closely related to the concept of strategy is the concept of a company?s business model. 2. A company?s business model is management?s storyline for how and why the company?s product offerings and competitive approaches will generate a revenue stream and have an associated cost structure that produces attractive earnings and return on investment. 3. The concept of a company?s business model is consequently more narrowly focused than the concept of a company?s business strategy. A company?s strategy relates broadly to its competitive initiatives and business approaches while the business model zeros in on whether the revenues and costs flowing from the strategy demonstrate business viability.
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