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Business models and strategies are often confused but are distinct concepts crucial to organizational success. Joan Magretta of Harvard Business Review explains that the term "business model" became prominent with the rise of personal computers and spreadsheets, enabling managers to simulate financial impacts of decisions. A business model can involve innovative production methods or sales approaches. For example, discount retailers like Kmart and Walmart transformed traditional department stores by adopting supermarket strategies, reducing costs through minimalist decor and lower service levels in order to offer competitive pricing. Understanding these concepts is vital for clear decision-making in business.