DISRUPTION BUSINESS MODEL-PPORTINITY FOR COMPANIES

In the current scope, an analytical appreciation of the business model and disruption context has been attempted by applying the Osterwalder and Pigneur business model. Discussion of the entire context has been performed on the USA based leading consumer goods organization Procter & Gamble Company, on which the entire discussion is applied. In connection to this conscious attempt, an effective literature review is conducted for a better understanding of the significance and meaning of the concepts of business model and context of disruption, specifically in case of the organization of Procter & Gamble. With this respect, the threats and opportunities of the business model of Osterwalder and Pigneur have been taken into consideration in case of business areas of the concerned company, followed by significant analysis of these two from specific perspectives of other two business models.

            As opined by Baldassarre et al., (2017), adoption and maintenance of the proper business model have been an increased focus of the modern corporate executives in order to achieve a higher competitive advantage. The very concept of business model has faced considerable variations and transformations connected to the different strategies and operational components. In view of Christensen et al., (2015), business model refers to the information flow as well as transactions, which leads to value creation in business accompanied by the generation of revenues. The term business model has been actually a conceptual structure, providing support to the viability of organizations and its services and products along with necessary inclusion of aims and purpose of the company and exploration of the ways of achieving those. As stated by Khanagha et al., (2014), from the perspectives of a real business scenario, a successful business model encompasses various business policies and processes adopted by organizations as its essential parts. A proper business model provides assistance and guidelines to the companies for achieving the better perception of the customers’ mindset and also helps those in proper planning and implementation of necessary procedures for delivering specific services to valuable consumers in compliance with the business values. According to Christensen et al., (2016), the business model is an essential mix of numbers and narratives, where the narratives explain the relationship of actors and actions and the numbers help in detail explanation of cost and revenue in the business. On the contrary, as described by Osiyevskyy & Dewald (2015), business model refers to a combination of creation, offering, delivery and capturing of values. The term disruption refers to the concept of being away and deviated from the actual aims and views of the business model, leading to a decreased gross margin of business along with having smaller target markets and products and services of companies appear to be less attractive to existing consumers of the company.

            In case of the Procter & Gamble Company, the Osterwalder and Pigneur (2010) business model refers to the valuable mediator between the potential customers and business ideas of the small-connected products of the consumer goods industry. From the perspectives of the business of Procter & Gamble, the business model of Osterwalder and Pigneur assumes a role of strong stimulator of ideas and thoughts about capturing as well as delivering values to the valuable customer base of the consumer goods company along with providence of quality services to them. In accordance with the opinion of Osterwalder et al., (2014), development of the stronger business bases based on the four key business elements has been a highly effective strength of the Osterwalder and Pigneur model. For the USA based leading consumer goods company, the most important core business elements are the value proposition, the architecture of important relationship between the Procter & Gamble Company and all the exchange partners and architecture concerning the performance of the company and its financial functional aspects. Therefore, according to Souto (2015), it can quite obviously be opined that the sole purpose of the Osterwalder and Pigneur business model is well aligned with the strategic operations of overall business functionality of Procter & Gamble. As mentioned by Veit et al., (2014), by following the Osterwalder and Pigneur business model, for the leading consumers goods company, it has turned easier to be rapidly aimed at the objective of pointing out the core business partners of the organization along with having an effective judgement of the key suppliers, value propositions and resources of the company. In addition to this, another important business component of Procter & Gamble has been to be focused at planning and implementation of valuable customer relationship chain by making more enhanced communication with them along with developing a strong value proposition for the consumer goods business. Apart from this, as opined by Osterwalder et al., (2014), in case of the smart-connected-products of P&G, the business model of Osterwalder and Pigneur provides assistance to the business by helping in proper identification and evaluation of available key resources, communication channels and customer segments. On the contrary, as criticized by Khanagha et al., (2014), inability in the identification of the potential risks and developing the ways of the business performing by avoiding such potential threats has been the main limitation of the Osterwalder and Pigneur business model. Therefore, the concerned business model does not provide or recommend any effective ways of pointing out the areas of deficiency in mitigating the business challenges for P&G. The overall operational performance and functionality of Procter & Gamble reflects this specific limitation of the Osterwalder and Pigneur business model and this is evident from the facts that in reality, Procter & Gamble Company has employed little efforts for effective analysis of the factors of competitive challenges and limitations, which is actually of considerable importance for the small-connected-products.

            With regard to the above discussion, it is also possible to judge the areas of limitation and opportunity of Osterwalder and Pigneur business model from the view perspectives of other two business models, which are business model as value proposition and business model of capabilities and resources. As opined by Osterwalder et al., (2014), while considering the effectiveness of the overall business performance and values of Procter & Gamble, it is reflected that the entire functionality of its wide ranges of business is in line with the strategic maintenance of the core aspects and objectives of the value proposition.  The company is successful enough in developing its business plans in such ways that would ensure its wide range of products and services being in line with the creation of values for the specific customer segments of P&G. If considered the types and patterns of its wide range of products, it is seen that the company produces a range of quality products involving Cleaning agents, personal care relatives, Healthcare and Beauty care products and many other ones, all of which are aimed at solving customer problems and thereby satisfying their needs. For maintaining value proposition related aspects, P&G is also trying to be consistent in the maintenance of adequate business resources and capabilities, which will help them in their value proposition objectives. Therefore, according to Khanagha et al., (2014), the overall operational performance of P&G is reflecting a balanced approach of business value proposition and resources and capabilities. This is further a genuine reflection of the successful utilization of Osterwalder and Pigneur model in the business of P&G. Therefore, it can be opined that these two business models are an extremely close connection to the areas of business growth of P&G, being in line with the business model of Osterwalder and Pigneur.

            The overall functionality of the Osterwalder and Pigneur model has a larger influence on the business operational performance of the USA based leading consumer goods company Procter & Gamble. The applicability of the model is also similarly useful and in line with the values of the other two business models that have been used in the current case. The aspects of value proposition and resources & capabilities for P&G are in close compliance with planning and implementation of value-based communicative relationship with customers and supply chain members. Close maintenance of the core values of these two models has provided enormous support to the overall business perspectives of the company. The Osterwalder and Pigneur business model has been sufficiently followed and maintained by P&G, with the help of which it is highly successful in operating at varies stages of functioning with a wide range of products and services. This has provided the business with facilities of effective communication to the core business partners, pinpointing the key activity areas, development of value propositions and maintenance of a proper relationship with valuable customer segments. These are the fundamental advantages of Osterwalder and Pigneur business model, also supported by the models of value proposition and capabilities and resources. However, lacks in identifying the sources and strategic solutions of the aspects concerning potential risks and threats is the vital limitation of the model.

            Hence, to conclude, it can be said that the leading consumer goods company Procter & Gamble has been considerably successful in following the core objectives of the Osterwalder and Pigneur business model, 2010. The existing highly specific opportunities of the business model provide valuable guidelines as well as motivation to the company for implementing rapid development in its overall business aspects. Conduction of the literature review of business model and disruption in then-current assignment has provided with valuable insights regarding the prior mentioned contexts. This has helped the USA based leading consumer goods company Procter & Gamble in assimilating the detail significance of the concepts of business model and disruption.