What Is a Business Model?
A business model is rationale that describes an organisation; its creation of products, networking to deliver and capture value. It also describes the economic, online Essay writer social and cultural contexts that the company or organisation follows. Both in theoretical and practical terms the business model comprehensively describes the core aspects of the business, its purpose, goals, target consumers, strategies, infrastructure, Dissertation Editors. organisational structure, operations and trading processes. According to a systematic review and analysis of manager responses obtained by a survey defines business model as a design and stepwise actions being taken by the organisation to a commercial opportunity. Extensions into this framework or design of actions it also emphasizes the use of narrative or coherence in these model to implement a growth strategy by the managers. They are used to describe and classify business in the entrepreneurial setting to Perfect Dissertation Layout help develop the company and explore areas of possible growth. They are basically recipes to creative business managers to have a long run growth without stagnation of products or services.
Types of Business Models
There are various types of business models:
- Subscription model is a types of business model where a consumer pays a monthly fee to get the products or the service.
- Bundling Model is the business model where the company is focused on selling by bundling two products into a single unit. This bundle may have a lower price than the products have separately. allowing the company have larger volume of sales, or even an opportunity to promote a new product. Bundling will be successful only if the products are College homework Help complements to each other. And both separately have a higher market price. For example nowadays many food chains have introduced the concept of combos, where a whole meal is provided at a lower cost. The benefit is that the combo will have the adequate amount of several meals that a single individual might like to have together but at a lower price.
- Freemium model is the business model popular in the online business and based in the software as a English Dissertation help service business. The business works like this, it provides a software (application or apps) to its customers freely. But some certain features are locked or are available after exchange of some fee.
- Razor Blade Model: this business model is based on the razor blade replacement theory. In drugstores it is seen that replacing old razor blades cost more than the new razor blades. So in this business model the companies provide products which are cheaper at the first but in future the same consumers are bound to buy expensive things.
- Product to service model: the model is based on the fact that one single comaony might not be able to provide all. The company suppose makes scooters but they cant have the raw materials being built all alone. Rather they will take the raw materials from another company. This model is typical to the sharing economy just Uber, where Uber mainly uses the cars which are owned by someone else and provide transport service.
