What is a business model?

A business model is a conceptual tool, which contains a series of elements and their relationships to clarify the business logic of a specific entity.

Business model is one of the important research objects of management, and mainstream business administration courses such as MBA and EMBA have paid attention to it to varying degrees. In the process of analyzing the business model, we mainly pay attention to the relationship between a class of enterprises and partners such as users and suppliers (that is, the main body of the marketing task environment), especially the logistics, information flow and capital flow between them.

A business model is a conceptual tool, which contains a series of elements and their relationships to clarify the business logic of a specific entity. It describes the value that a company can provide to its customers, and the internal structure, partner network, relationship capital and other factors used to realize (create, sell and deliver) this value and generate sustainable profit income.

Characteristics of a successful business model:

A successful business model should provide unique value. Sometimes this unique value may be a new idea; And more often, it is often a unique combination of products and services. This combination can provide additional value for customers; Either let customers get the same income at a lower price or get more income at the same price.

This business model is difficult to imitate. Enterprises can improve the entry threshold of the industry by establishing their own uniqueness, such as careful care for customers and unparalleled execution ability, so as to ensure that the source of profits is not infringed.