The difference between a company's business model and a company's strategy is that:

• A. A business model focuses solely on marketing, whereas a strategy focuses only on financial reporting.
• B. A business model is concerned with short-term tactics, while a strategy is only about long-term planning.
• C. A business model describes how a company creates, delivers, and captures value, while a strategy outlines how the company will compete and achieve its goals within its chosen market.
• D. A business model and a strategy are interchangeable terms that mean the same thing.

Answer: (C)

Verified step by step guidance

1. Understand the concept of a business model: A business model describes how a company creates, delivers, and captures value. It focuses on the operational and structural aspects of the business, such as the value proposition, customer segments, revenue streams, and cost structure.
2. Understand the concept of a strategy: A strategy outlines how a company will compete and achieve its goals within its chosen market. It involves long-term planning and decision-making to gain a competitive advantage and meet organizational objectives.
3. Differentiate between the two concepts: A business model is more about the 'what' and 'how' of the business operations, while a strategy is about the 'why' and 'where' the company is heading in terms of competition and market positioning.
4. Analyze the incorrect options: The first option incorrectly states that a business model focuses solely on marketing, and a strategy focuses only on financial reporting. The second option incorrectly states that a business model is concerned with short-term tactics, while a strategy is only about long-term planning. The fourth option incorrectly states that a business model and a strategy are interchangeable terms.
5. Conclude with the correct answer: The correct distinction is that a business model describes how a company creates, delivers, and captures value, while a strategy outlines how the company will compete and achieve its goals within its chosen market.