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  • Subject Name : Management

Components of the Business Model

Four components of a business model, (lShafer, 2005) suggested the following model

A business model is basically a plan describing the way organization intends to make revenue. It talks about who the customer base of yours is actually and just how you provide value to them as well as the similar information of financing. And also the business model canvas allows you to determine these various parts on a single page.

The main business model is to provide low cost economy car to middle class and reaching the to the maximum sector i.e the biggest is size.

In Case of Digital Signal it is very clear and evident that the business strategy model is to put the “ Customer First” , (Suarez, 2016) Delta Model created by MIT professor lead by Arnoldo Hax. Mr. Enrique Suarez firmly thinks grounded on specifics about human characteristics, that the Delta Model is considered the most complex business program in the earth for among some other things the Delta Model considers approach not as an action of battle (Porter's 5 forces), but considers technique as an act of client bonding (Love). Seeing the planet not in transactional however in transformational and interpersonal ways promises the business community see the primary objective of small business as to meeting man economic requirements by cultivating resourceful human talent. On the various other hand, the Resource Based View of the Firm is a lot more aimed with the Delta Model

Resource Base – Asset Analysis

As par figures given in exhibit 3, there is no bifurcation available for the Fixed assets, total assets it has currently is $960 Million in 2012, which has come down from the year 2008 from $1002 Million. Exhibit 2 shows that company has achieved a asset turnover ratio of .93 times over its operation i.e. income earned from the assets. This ratio if compared with its competition seems to be ok

Activity System (Value Chain Analysis)

The following can be termed as the part of value chain analysis of Delta Signals as auto industry

Primary Activities

  • Inbound Logistics- Managing and creating the supply chain of spare parts and other auto components within the timeline and cost effectivity
  • .Operations – The main operation of the company is the manufacturing operation i.e to produce the low cost cars for its customers
  • Outbound Logistics- Logistics include the distribution channels, authorized dealers and direct the car buyers.
  • Marketing and Sales- Marketing is the part of the value chain which not only provide input in the overall customer expectation and creates demand but also helps in innovation and design being the direct representatives of the customer or users
  • After Sale Services

Product Offerings and Value Proposition (Competitive Scope)

There is an important competitive advantage with Digital Signal corps i.e. its target market segment, which is huge i.e. middle class auto sector. This sector is large market size and as company’s main aim to be reduce the cost by way of performance improvement and kaizan which they are successfully last 18 months and reduced 35% of manufacturing defects , has differentiated it from its competitors, ODAWA, VULFARM, SHAGIMAW, which is reflecting in exhibit 2 financials.

Delta Signal is able to make a good GP margin of 20%, highest among all its competitors, Price earnings ratio and return on equity is also on a higher as compare to others. The company is able to encash this in by way of business growth in last 12 months by 33.84% as compared to industry growth of 1.59%

References for The Strategic Management Frameworks

lShafer, e. a. (2005). Four components of a business model. Retrieved from https://www.researchgate.net/figure/Four-components-of-a-business-model-Shafer-et-al-2005_fig1_295503085

Suarez, E. R. (2016). Delta Model_Putting_Customers_Before_Products. Retrieved from https://www.researchgate.net: https://www.researchgate.net/publication/299138664_The_Strategic_Management_Frameworks_and_the_Delta_Model_Putting_Customers_Before_Products

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