Business Modelling in the Strategic Management of International High-Tech Companies

Abstract

The article is aimed at analyzing the conception of business model within the terms of enterprise strategic management and substantiating its influence on Ukrainian high-tech enterprises. Taking into account the fact that the conception of business model has long been explored by foreign scholars, it becomes necessary to determine how it is used in the strategic management of Ukrainian high-tech companies. Through the carried out content analysis of strategic management definitions provided by different authors, the main elements are allocated, which most scientists focus on, namely: process of strategy development, goal setting, analysis of the internal and external environment, and creation of value. Creation of value is a particularly important parameter of the high technology market, since the life cycle of such goods is short. Based on these data, it was decided to analyze 50 innovative companies of Ukraine and their business models according to the metrics of «Business Model Canvas», developed by the Swiss business theorist Alexander Osterwalder. The results of a frequency analysis helped to determine that Ukrainian companies have four weak structural elements of business models: clients, relationships with clients, key partners, and cost structure. It has been found that companies use their business models only as a marketing communications tool. But, unfortunately, without understanding the cost structure, clientele and partners for whom value is created, the strategic development of company is impossible.

Keywords

• business model
• strategic management
• high-tech enterprises
• business modeling
• strategy
• value creation
• international business
• marketing communications