Business Model

Business Model


Business Model

 

One fateful decision we face when we establish a business model is the decision to determine the scope of services and products and their production mechanism!

Which is better?

– Specialize in specific products and services and focus on their production in quantities.

– Provide customized detailability.

 

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In fact, this question is very complicated, and unfortunately many businessmen quickly go beyond this bump without examining the implications of this decision, believing that both cases can easily be covered at the same time. The negative impact of this resolution will then be discovered, which we will demonstrate by analysing each other’s features and disadvantages.

Let’s study the first option: specialization in specific products and services and is usually few with special specifications (specific colors – specific sizes – specific specifications) in other words have specific standard specs.

 

Features:

– Specialization necessarily means reducing costs in everything, but how?

If we talk about the product, for example:

  1. ” Specialization means that the procurement and storage process will be limited to specific materials, colours, specific spare parts and a specific production line.
  2. Specialization means that the number of workers will be lower, it is very easy to automate the production process in this case and rely on machines more and speed up operations.
  3. Specialization necessarily means that the chances of errors will be reduced so as not to change designs and specifications at a time, making it easier for employees to understand well what is needed and reducing the need to change the settings of production lines and machines at a time.
  4. Specialization helps professionalism and concentration greatly thereby raising quality.

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