Explain the difference between a business model and a business strategy.

The business model and business strategy overlap and share the goal of earning a profit. A
business cannot have one without the other. For this purpose, an explanation of a business
strategy is just as important as the selection of a business model. A business strategy is
concerned with competing in the marketplace. The business model is simply how a merchant
makes money. The business model explains the functions of the business such as the day-to-day
operating strategies, expenses of the business, security policies, procedures of the store, and
merchandising. Scholars define a business model as the economic underpinnings of an
enterprise's strategy (Harvard, 2005, p. xv).