BUSINESS MODELS Flashcards
(28 cards)
A strategic plan on how the
company will make money.
It contains information
about services, products,
markets and expenses.
BUSINESS MODEL
COMPONENTS OF A BUSINESS MODEL
- VISION AND MISSION
- OBJECTIVES
- CUSTOMER TARGET AND CHALLENGE
- SOLUTION
- DIFFERENTIATORS
- PRICING
- POSITIONING AND MESSAGING
- GO-TO-MARKET
- INVESTMENT
- GROWTH OPPORTUNITY
Describes the overall purpose
and direction of the company,
as well as its long-term goals and aspirations.
Vision and Mission
Outlines the specific, measurable goals that the company aims to achieve in order to fulfill its mission and vision.
OBJECTIVES
identifies the specific pain points and challenges faced by the company’s target customers, and how the company’s solution addresses these issues.
CUSTOMER TARGET AND CHALLENGE
Describes the product or service that the company offers to solve the problems faced by its target customers, and how it provides unique value compared to other solutions on the market.
SOLUTION
Highlights the factors that set the company’s solution apart from competitors, such as technology, features, pricing, or customer service.
DIFFERENTIATORS
Outlines the pricing strategy for the company’s product or service, including any discounts or promotions that may be offered.
PRICING
Describes how the company positions its product or service in the market, and how it communicates its unique value to customers through messaging and branding.
POSITIONING AND MESSAGING
Outlines the specific tactics and strategies that the company will use to bring its product or service to market, such as through advertising, social media, or partnerships.
GO-TO-MARKET
Describes the funding sources and capital structure for the company, including any investments or loans that are required to launch or grow the business.
INVESTMENT
Identifies potential opportunities for the company to expand its customer base, develop new products or services, or enter new markets in the future.
GROWTH OPPORTUNITY
Difference between BUSINESS MODEL and BUSINESS PLAN
A business model captures your hypothesis for how your business will generate revenue and reach profitability, charging a price for an offering you create at a sustainable cost. while
A business plan drops down one
level to show how you will implement
the business model.
TYPES OF BUSINESS MODEL
- RETAILER
- MANUFACTURER
- FEE-FOR-SERVICE
- SUBSCRIPTION
- BUNDLING
- PRODUCT AS A SERVICE
- RAZOR BLADES
8.ADVERTISING/AFFILIATE - FREEMIUM
- DISTRIBUTION
- FRANCHISE
- LEASING
Purchase and sells products manufactured by others and distributed to them — the last step of a supply chain.
Retailer Model
Converts raw materials into products that are sold
to distributors, retailers, or directly to consumers.
MANUFACTURER MODEL
Sells labor (intellectual or physical) for a set fee (hourly or by project).
FEE FOR SERVICES MODEL
Offers a product that requires ongoing payment for a fixed time period. A company may directly ship its product in the mail, or you may pay a fee to use its services. Ex. netflix
SUBSCRIPTION MODEL
Companies selling two or more products together as a
single unit, often for a lower price than they would
charge selling the products separately.
BUNDLING MODEL
Businesses charge customers to use physical products
PRODUCT AS A SERVICE MODEL
A company buys a product from a seller then allows
another company to use the product they purchased
for a recurring fee
LEASING MODEL
A franchise is an established business blueprint that a
franchisee purchases and reproduces.
FRANCHISE MODEL
In this model, customers can use parts of a
product or service for free but must pay for access to
more advanced features.
FREEMIUM MODEL
a business earns a commission
when a member of its audience buys a product or
service it recommends.
AFFILIATE MARKETING
