Business Models

Business Models

IntroductionA business model describes the rational of how an organization creates, delivers, and captures valueBusiness models are used to describe and classify businessesThey are also used by managers inside companies to explore possibilities for future developmentBusiness modelsThe business model is a statement of how a firm will make money and sustain its profit stream over time.The Business Model is referred as the blueprint of how a company does businessThe business model is the totality of how a company selects its customers, defines and differentiates it offerings, defines the tasks it will perform itself and those it will outsource, configures its resources, goes to market, creates utility for customers and captures profitsWhy a business model is so important?a. Low costb. DifferentC.The holy grail-When I was young I used to think that wealth and power would bring me happiness. I was right.Gahan Wilson, cartoonist.

Design content emphasis of business model

Business model design includes the modeling and description of a company's:Value Propositions- What do we offer to our customers? WHATTarget customer segments- Who are our customers?-WDistribution channels- How do we reach them?-WCustomer relationships- How do we get and keep them?-WValue configurations- How do we create and deliver?-HCore capabilities- what are our key competencies?- HPartner network- How do we collaborate?-HCost structure- What are our cost?- HMRevenue model- what are our revenue and pricing?-HM

Types OF Business models The bait and hook business model also referred as razor and blades business modelBricks and clicks business models- offline and onlineCollective Business model-A university research park, science parkCutting out middlemen model- internetDirect sales model- tupperwareDistribution sales modelTypes OF Business models 6. Value added resale model- soft ware, electronics7. Franchise model- Macdonald8. Freemium business model- social networks9. low- cost carrier business model10. Subscription business model- Newspapers, EntertainmentsEnd