Global Business Model Building Based on the Three Core Competences and Business Architecture

Abstract

This chapter addresses the challenges faced by industries that regard their companies’ technological skills as tacit knowledge that cannot be leaked. We briefly describe the increasingly competitive global market, where customer interests are elusive; hence, traditional business models should be reviewed holistically using an objective framework. We also provide a literature review guided by two questions: (1) based on the principles of core competences and business architecture, what is the ideal type of global business model? (2) how can these success factors be put into action? To answer these questions, we introduce the linkage competence model. This framework will help us clarify why certain Japanese firms have failed in their business strategies and how this can be remedied.