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In order to understand the elements of the business model, we can look at how Tata Motors has made the innovation of the landmark business model.
It is impossible to establish or reshape the business model by setting the value proposition of the customer. Customer value propositions often come from a very simple realization. Now imagine that youre standing on the road in the rain of mumbai, India, and you see a lot of motorbikes dangling across the road. As you approach, most of these motorcycles carry a family -- mom and dad and a couple of kids. Your first thought might be too dangerous, or in developing countries, where people survive in the cracks.
But Ratan Tata group - Tata (Ratan Tata) saw this scene, his thought is to do a difficult job - for these families with motorcycle safer means of transport. He knows that these motorbike families cannot afford to buy cars because Indias cheapest car is four times more expensive than motorbikes. So it is a powerful value proposition to provide a safer, windshield, cheap car for these families. The potential customer of this value proposition is millions of people who have not yet entered the auto market. However, ratan tata also understood that it was impossible to develop such a cheap car based on the current business model of tata motors.
The most important attribute of the customers value proposition is its accuracy -- how to meet the customers job requirements flawlessly, and only for the customers work. However, such accuracy is often the hardest to achieve. Companies tend to ignore just one job when creating new ideas, and they tend to focus on trying to cover everything. The exhaustive results are not accurate enough.
There is a way to ensure the accuracy of the customer value proposition, time is money, ways, skills, and these four factors into account, because they are the four most common factor prevents people to complete the specific work. Software maker Intuit has invented QuickBoo
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