Question: Business models and value chain models are both important components of in a company's overall success. These elements work together as the benefits that the
Business models and value chain models are both important components of in a company's overall success. These elements work together as the benefits that the value chain provides contribute to the business model by giving customers a reason to buy, generating revenue and keeping the company afloat. A value chain model represents the qualities that make products and companies successful from the customers point of view, while the business model describes the systems that make a company viable for its owners and investors. The value chain model describes the ways that a company tailors its products and services to meet the needs of current and prospective customers. A company's value chain model is an important part of its business model, because satisfied customers purchase products and services over time. the ideal relationship between a business model and a value chain model involves balance, as the company invests enough money to create value, while still keeping costs under control and generating a profit.
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