A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, or other forms of value). The process of business model construction is part of business strategy.
Many types of business model innovations have been proposed. Important and notable ones among them are:
* Revenue Model Innovation-Improvising the value proposition of the services offered by an effective product/value mix and intelligent pricing strategies
* Industry Model Innovation-Creating a new industry or re-defining a new industry with improved offerings
* Enterprise Business Model Innovation-Optimise the organisational practices followed by collaboration, new strategies and partnering
Horlicks Business Model:
Horlicks is known for its revenue model innovation through its innovative product offering and strategies. In case of Horlicks, business services shown in the above diagram is diversified and tailor-made for different customer segments
Horlicks has constantly maintained its numero-uno status in the health drinks category in spite of strong competition from Complan and Bournvita. Generally, long-run profits tend to be minimal in this market. The only solution available to negate this is to offer customers with improvised and innovative products and that is where Horlicks managed to achieve a sustainable growth.
The entire customer base has been segmented into different categories depending upon various demographic factors like age, sex, tastes etc. Needs for each of these segments have been fulfilled by offering varied products for each category
Horlicks Women: This variant is aimed at women especially in the age group of 19-50 years and claimed to contain chemical composition which strengthens the muscles
Horlicks Mother’s: This variant is designed keeping in mind the needs of a sub-segment of women: pregnant ladies and breast-feeding mothers. This was well-received as it is first of its kind in the Indian...