This PPT slide, part of the 218-slide Business Model Design Report PowerPoint presentation, outlines 7 principles designed to guide the development of a new business model. Central to this framework is the concept of leveraging existing strengths, indicated by the phrase "exploit competitive advantages." This suggests a focus on maximizing what the organization does best.

The first principle emphasizes achieving economies of scale, which is crucial for reducing costs and increasing efficiency. Following this, several strategies are proposed to enhance productivity. These include optimizing resources through centralization, outsourcing workshops, and sharing general overhead costs. Each of these strategies aims to streamline operations and eliminate inefficiencies.

The slide also highlights the importance of divesting from non-core loss-making activities. This indicates a strategic shift towards focusing on profitable segments of the business, ensuring that resources are allocated effectively. Additionally, there is a call to reconsider other marginal activities, which suggests a thorough evaluation of all business functions to identify areas for improvement.

On the differentiation front, maintaining a strong local presence is noted as essential. This principle underscores the need for businesses to remain connected to their local markets, which can enhance customer loyalty and brand recognition.

Overall, the principles presented are actionable and focused on enhancing both productivity and differentiation. They provide a clear roadmap for organizations looking to adapt their business models in a competitive environment. The insights here can be particularly valuable for decision-makers aiming to refine their strategic approach.

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Strategy Development Example Business Model Design Competitive Advantage Customer Loyalty Workshops