The terms business model and business strategy are very closely related. Some business people prefer to define the business model simply as the concrete illustration of the strategy at work. In any case, both the model and the strategy describe how the company makes money: how it creates customer value, how it competes with others in the same industry, and how it generates revenues and spends money to create acceptable margins.
Many different strategies and models are possible, even for companies in the same industry selling similar products or services. Southwest Airlines (in the US) and Ryan Air (in Europe), for instance, have strategies concentrating on providing low cost transportation. Singapore Airlines, by contrast, has a strategy based on brand image for highest quality luxury customer service. A strategy is judged successful if it leads to a strong competitive position, business growth, and good margins.
