From the book Understanding Michael Porter;
A business model highlights the relationship between your revenues and your costs. Strategy goes an important step further. It looks at relative prices and relative costs, and their sustainability. That is, how your revenues and costs stack up against your rivals’.
May I know what does the above text mean?
Would appreciate any insights to further understand the differences between a business model and strategy.
Thanks.
Hi Florian, would you recommend any reading material similar to Micheal Porter’s?
Not for consulting interviews, only if you are more interested in that concept. A relatively practical approach is the business model canvas by Osterwalder and Pigneur.