business models Flashcards
(14 cards)
what is an online business
Exist solely on the internet with a small number of offices to facilitate business operations.
what is Bricks and mortar
Businesses that have a physical location, like a store in a shopping centre.
what is bricks and clicks
businesses that have had to adapt and establish an online presence to complement their physical stores – known as bricks and clicks
what is social enterprise
aims to improve the wellbeing of others through its business activities
what is a franchise
A business structure where the buyer (the franchisee) pays a licensing fee to trade using the branding, trademarks, products, suppliers, and systems of an established business (the franchisor
what is an import
Businesses that source goods from overseas for sale in Australia due to their superior quality, cheaper cost of production or lack of viable local alternatives.
what is an export
Businesses that sell Australian-made goods and services to overseas customers.
what is direct to consumer businesses
Businesses that sell their products directly to consumers without any intermediaries, like retailers or wholesalers.
what is an advantage and disadvantage of online businesses
PRO: reach customers across the globe via the internet
avoid expenses of a physical store
CON: customers are exposed to risk of theft when making payments, risk of having unsatisfied customers
whats a pro and con of bricks and mortar
PRO:face to face customer interaction, less likely to have unsatisfied customers
CON: more expensive to establish and maintain, difficult to remain competitive on price
pro and con of direct to consumer businesses
PRO: strong customer connections to build loyalty, lower costs meaning competitive prices
CON: must master all aspects of the business production and selling
pro and con of a franchise
PRO: high success rate , supplied with start up money and labour
CON:franchisor has majority of control over operations and can’t make independent decisions
pro and con of imports
PRO:source goods that are competitively priced in the AUS market due to quality, cheaper cost of production
CON: goods produced must meet all Australian standards before being sold
pro and con of exports
PRO: opportunity for a business to grow/expand
CON: need to consider legal requirements of country being exported to
