Business Model Essay Example | Topics and Well Written Essays - 2500 words

Business Model - Essay Example agers is the business model canvas that evaluates organizations based on their value proposition, customer segments, channels, key activities, key partners, customer relations, revenue streams, cost structure and key resources. Osterwalder (2004) describes a business model as describing the rationale of how an individual firm creates captures and delivers value. This paper provides an evaluation of the business model of General Electric based on the building blocks in the business model canvas. As such, the paper will look at the value proposition in terms of the products that it offers to its customers and how the company creates value to the customers who then are convinced to make repeat purchases. It will also asses the key activities that General Electric engages in to offer value to its customers, the resources it needs to perform these activities; their key partners customer segments and the sources of income. General Electric is widely known for its products that are sold to consumers globally. The company has highly diversified its products to cover several areas including consumer products, energy, infrastructure and products in the industrial segment. The company, has grown over time to be one of the most successful and largest producers of goods in the world and their business model is worth a study. The company’s business model is characterized by the diversification of their line of products to cover a wide range of products in a variety of fields including health and aviation industries. This should reasonably protect the company against the risks associated with a down turn in any of the industries (Gondzwaard, 1976). In what some scholars have noted to be an American culture oriented business environment, General Electric encourages competition both internally and externally and regards individual effort more than collective effort. The company also encourages and rewards continuous learning. In what can be called their value proposition,