In the current scope, an analytical appreciation of the business model and disruption context has been attempted by applying the Osterwalder and Pigneur business model. Discussion of the entire context has been performed on the USA based leading consumer goods organization Procter & Gamble Company, on which the entire discussion is applied. In connection to this conscious attempt, an effective literature review is conducted for a better understanding of the significance and meaning of the concepts of business model and context of disruption, specifically in case of the organization of Procter & Gamble. With this respect, the threats and opportunities of the business model of Osterwalder and Pigneur have been taken into consideration in case of business areas of the concerned company, followed by significant analysis of these two from specific perspectives of other two business models.
As opined by Baldassarre et al., (2017), adoption and maintenance of the proper business model have been an increased focus of the modern corporate executives in order to achieve a higher competitive advantage. The very concept of business model has faced considerable variations and transformations connected to the different strategies and operational components. In view of Christensen et al., (2015), business model refers to the information flow as well as transactions, which leads to value creation in business accompanied by the generation of revenues. The term business model has been actually a conceptual structure, providing support to the viability of organizations and its services and products along with necessary inclusion of aims and purpose of the company and exploration of the ways of achieving those. As stated by Khanagha et al., (2014), from the perspectives of the real business scenario, a successful business model encompasses various business policies and processes adopted by organizations as its essential parts. A proper business model provides assistance and guidelines to the companies for achieving a better perception of the customers’ mindset and also helps those in proper planning and implementation of necessary procedures for delivering specific services to valuable consumers in compliance with the business values. According to Christensen et al., (2016), a business model is the essential mix of numbers and narratives, where the narratives explain the relationship of actors and actions and the numbers help in detail explanation of cost and revenue in the business. On the contrary, as described by Osiyevskyy & Dewald (2015), business model refers to a combination of creation, offering, delivery and capturing of values. The term disruption refers to the concept of being away and deviated from the actual aims and views of the business model, leading to a decreased gross margin of business along with having smaller target markets and products and services of companies appear to be less attractive to existing consumers of the company.
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