What are the shortcomings of the traditional business model?

The disadvantages of the traditional business model are as follows:

First, the disadvantages of manufacturing.

Because in the traditional business model, manufacturers do not directly face consumers, but face middlemen and retailers, so manufacturers can't know consumers' evaluation, suggestions and requirements for products at first hand; Therefore, it has a certain lag.

Second, the disadvantages in transportation links.

The sales mode of goods from manufacturers to middlemen, to retailers and finally to consumers can obviously not meet the needs of modern life, because this traditional mode has caused a lot of waste of manpower, material resources and financial resources compared with the no-store mode in which manufacturers directly face consumers.

Third, the defects of the traditional business model in cost.

Because of its shortage in production and transportation, its transaction cost increases, and finally its competitiveness decreases because of the high product price, which is not conducive to the development of enterprises.

Fourth, the sales volume is insufficient

With the enhancement of people's concept of time and the trend of aging society, more and more people are reluctant to use traditional shopping methods to buy things, because traditional shopping methods take time and energy, and they may not be able to buy their favorite goods. Traditional sales are not only flattering to consumers, but also sellers have to hire a large number of salespeople, which undoubtedly increases the cost of sales.