SMEs: Strategy on selection of business model

It´s an effective way for SMEs to select new business model to respond to more rigid competition of environment and to improve performance. The first step for SMEs to make choice of new business model is to identify the weakness of existing business model. Then identification of value creation sources in new business model is needed. Thirdly, SMEs should conduct designing of transaction structure of new business model. During this process, SMEs have to decide whether they play a role of focal business or not. If not, it means that SMEs abandon establishment of new business model and select participation of a new one built by other firms. After selection of new business model, SMEs will have to make adjustments of transaction content and transaction structure.