The Fundamental Business Model: Creating Value through Strategic Relationships

Jan 11, 2026

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The Fundamental Model explores the essential elements of business relationships, highlighting the interconnectedness of actions, events, and their causal relationships. It posits that causality requires temporal precedence, covariance, and the absence of alternative explanations. The model organizes concepts of vision, culture, strategy, and operations into strategic frameworks, focusing on trust, capability, and market share. It includes key methodologies for differentiation and value creation while emphasizing the importance of knowledge and insight in navigating complex business environments.

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The Fundamental Business Model: Creating Value through Strategic Relationships

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The Fundamental Model
The Fundamental Model Straight thinking (about business or anything else) A B We will be considering relationships among/between actions, happenstances, presumably related events, and other such observables…so, For OUR purposes (whole classes are devoted to this…) CAUSALITY (saying this caused that, A caused B) requires: * Temporal precedence * Covariance * No feasible alternative explanation
AND…When we talk about ‘information’… • Data • Information • Intelligence • Insight • Intuition • Knowledge • Wisdom • Philosophy
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Five P’s (Concept/Creativity) Product/Promo/Price Place/People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation
Value can be expressed several ways. Three of the clearest are: Benefits (total ‘get) Value = ---------- … or more specifically, Price (total ‘give’) Fb + Eb Value = --------- … where, P + Oe Fb = Functional benefits (utility) Eb = Emotional benefits (psychology) P = Price (charged) for acquisition Oe = Other expenses/costs of acquisition … and finally Value = You answered my question! Solved my problem!