Business Model Innovation Of Cellphone Industry Based On Industry Value Chain

We always consider the reasons why a business operation runs wrong are lowquality of products,lack of R&D or loose system management,especially when theenterprises used to success.Those reasons seem to be right but they are not touch theessence."Today’s competition among enterprises is not the competition of products,butthe competition of business models."quote by Peter Drucker,the managementguru.During successful enterprises’ development,they would generate business modelwhich requires constant innovation.The effect of business model innovation outclass theenterprises’ innovation in technology,products and management.Cellphone industry hasbeen regarded as technical-oriented industry,but entrance of Apple corporation changedthe pattern of the whole industry.Apple corporation do not have the core technology andalso is not the originator in cellphone industry,but it gets high gross profit which makesthe counterpart coveted by combining the technology into their products and operatingbusiness model innovation.Our cellphone corporations,living off low price andhomogenization products,can learn a lesson from the experience of Apple corporation’ssuccess that is build their own business model to keep survival and development in thefierce competition.Different scholars have been research business model innovation from differentperspective.According to the foundation of value train built by predecessors,thedissertation aim to analysis business model innovation by using industrial valuetrain.First of all,the dissertation analysis the inner relationship between industrial valuetrain and business model innovation.Business model locate in the industrial value trainand business model innovation also is based on value chain.Second of all,the dissertationanalysis the business model innovation mechanism in the cellphone industry,whichinclude the target,process,types and valuation of business model innovation.Then we do acase study by choosing the famous corporation Motorola and Nokia separately in order totestify the rationality of the mechanism.Last but not the least,the dissertation come upwith a business model, namely extension innovation business model in3G time on thebasis of the above analysis,because of the technical innovation and value translation inthe cellphone industrial value train.Then it has been verified by using Apple corporationfor case study.This would be beneficial lessons learned by many national companieswhich are still in the processing of livelihood and development in3G time.