California State University
A business model represents the decision space for strategic options of a firm. These options are determined by the market situation in which the firm operates. Among these options the firm makes its strategic decisions which are evaluated by the firm's performance in the market measured by business values. Thus, there is a link between market conditions, business model choices, and performance. This link was first formulated in the Structure-Conduct-Performance (SCP) framework in the field of industrial organization, which links together the supply-side with the demand-side.