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Business & Management

"Competition among enterprises today, is the competition between business models."

Growth depends on how investors or retailers set themselves up to deliver value into the market. The business model describes how a company competes, uses it resources, structures its relationships, interfaces with customers, and how it creates and captures value to sustain itself. The key elements in a business model include:

  • customer value proposition (why should a customer buy at your company) - how will the company create such value and for who?

  • format features (how will the customer experience the company) - what are the starting points to create a format?

  • company’s core competences - what are the internal capabilities or skill-sets that enable the company to manage the business?

  • profit model (how to generate sales and how to manage the expenses) - how will the company make money?

A discount business model should be very simple to explain. At the forefront discounters start with a basic consumer need which is 'high quality at a low price'. Discounters fulfil that need better than anyone else on the market. Discounters create customer loyalty by a strong and consistent value-for-money focus by keeping the price the lowest in the market.

At the tail end discounters have excellent purchasing capabilities while using their scaling effects. Discounters apply and maintain extreme cost control management and they have clear lean standardized workflow processes.  

DRC develops in conjunction with clients, custom-made strategies based on existing sector reference models and best practices. Fitting into market and customer requirements and pre-defined deliverables.

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