Accounting assignment on: Gaining competitive edge and revenue maximization

Let us understand how business model innovation can help companies in gaining competitive edge and revenue maximization with the help of an example.

“Case of Apple Inc.”: The Company’s main business was with production of hardware especially personal computers. The company took an innovative stand and went on creating iPod and associated business downloads. Apple was the first electronic company to take this step of including music distribution as one of the activity. Apple started offering many sub activities of music downloads to its customers which was quite legal. This lead to reduction or avoidance of any incremental cost for the company while offering a new service to the customers. Rather than just adding one more hardware product to existing segment Apple decided to get into music downloads by radically transforming its existing business model which created an ongoing long term relation with his hardware customers.(IESE School of Management working paper 2010).

This innovative approach of Apple gave it a competitive edge over others

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