Published by: krisha Silwal
Published date: 23 Jul 2024
A business model outlines how a company creates, delivers, and captures value. Here are the key elements:
Value Proposition: What unique value does the company offer to its customers? This can include products, services, or unique features.
Customer Segments: Who are the target customers? This can be defined by demographics, psychographics, behavior, or needs.
Channels: How does the company deliver its value proposition to customers? This includes distribution channels, sales channels, and communication channels.
Customer Relationships: How does the company interact with its customers? This can include personal assistance, self-service, automated services, or communities.
Revenue Streams: How does the company make money? This can include sales, subscription fees, leasing, advertising, licensing, or other revenue models.
Key Resources: What resources are necessary to deliver the value proposition? This includes physical, intellectual, human, and financial resources.
Key Activities: What activities are crucial to deliver the value proposition? This includes production, problem-solving, platform management, and marketing.
Key Partnerships: Who are the company’s partners and suppliers? This includes alliances, joint ventures, and other types of partnerships.
Cost Structure: What are the major costs involved in the business model? This includes fixed and variable costs, economies of scale, and cost allocation.
1. Wholesale:
2. Distribution:
3. Procurement:
4. SaaS (Software as a Service):
5. Consulting and Professional Services:
1. Online Retail:
2. Subscription:
3. Freemium:
4. E-Tailing:
5. Direct-to-Consumer (D2C):
C2C (Consumer-to-Consumer):
Description: Consumers sell products or services to other consumers, usually facilitated by a third party.
P2P (Peer-to-Peer):
Description: Individuals share access to products or services, often facilitated by a platform that connects peers.
Example:
Each of these business models uses distinct features to add value and generate revenue. Understanding these models aids in determining the most effective tactics for growth, efficiency, and consumer involvement across market segments.