What is a business model business model for business

Business model is a relatively new term. Although it first appeared in the 1950s, it was not until the 1990s that it began to be widely used and disseminated. Today, there is still no authoritative version of the definition of the term, although it appears with great frequency. The definition given after reviewing a large body of literature is that a business model is a conceptual tool that incorporates a set of elements and their relationships to articulate the business logic of a particular entity. It describes the value that a company can provide to its customers and the elements of the company's internal structure, partner networks, and relationship capital that are used to realize (create, market, and deliver) that value and generate sustainable and profitable revenues. When people use the term business model in the literature, they tend to blur two different meanings: one group of authors uses it simply to refer to the specific ways and means of how a company does business, while the other group of authors emphasizes more on the modeling aspect. The two are substantively different: the former refers generally to the way in which a firm engages in business, while the latter refers to the conceptualization of that way. Proponents of the latter view propose ReferenceModels, consisting of elements and relationships between them, to describe a company's business model. Concepts of Business Models There are many versions of the conceptualization of business models. They have varying degrees of similarity and difference. Based on a synthesis of the various conceptualizations***, a reference model with nine elements is proposed. These elements include: Value Proposition: the value that a company can offer to consumers through its products and services. The value proposition recognizes the company's relevance to consumers. Target Customer Segments: The consumer segments that the company is targeting. These segments have certain ****nesses that enable the company to create value (in response to these ****nesses). The process of defining consumer segments is also known as Market Segmentation. Customer Relationships: The links that a company establishes with its consumer base. This is related to what we call Customer Relationship Management. ValueConfigurations: The configuration of resources and activities. CoreCapabilities: The capabilities and qualifications a company needs to execute its business model. Partner Network: The network of relationships that a company forms with other companies to effectively deliver and commercialize its value. Tamos defines a business model as a complete system of products, services and information flows, including each participant and the role it plays in it, as well as each participant's potential benefits and the corresponding sources and means of revenue. In analyzing the business model, the main focus is on the relationship of a type of enterprise in the market with users, suppliers, other cooperation offices, especially the logistics, information and financial flows between them. -Business model includes at least three levels of meaning: ① Any organization's business model has an implicit assumption of the establishment of the preconditions, such as the continuity of the business environment, the relative stability of the market and demand attributes in a certain period of time, as well as the competitive situation, and so on, and these conditions constitute the existence of the business model of the reasonableness of the business model. ② business model is a structure or system, including the internal structure of the organization and the relationship between the organization and the external elements of the structure, the components of these structures are intrinsically linked, they interact to form a model of the various movements. (iii) A business model is itself a strategic innovation or change, a continuum of institutional structures that enable an organization to gain long-term advantages. According to Yuan Xinlong and Wu Qinglie (2005), a business model can be summarized as a system that consists of different parts, the links between the parts and their interaction mechanisms; it is an organic system in which an enterprise can provide value to its customers, while the enterprise and other participants share the benefits; it includes the structure of the flow of products and services, the flow of information and the flow of funds, including the description of the different business participants and their roles, and it also It includes the structure of product and service flows, information flows and financial flows, the description of the different business participants and their roles, and the division of the benefits of different business participants and their distribution. -System theory. This type of theory considers a business model as a system or collection of many factors. According to Mahadevan (2000), the business model is the only mixture of the three flows that are critical to the firm - value flow, revenue flow and logistics. According to Thomas (2001), a business model is the overall configuration of processes, customers, suppliers, channels, resources and capabilities involved in starting a profitable business. Beinhocker and Kaplan (2003) emphasize the integrative, intuitive and creative spirit of business models. Junyi Weng defines a business model as a value analysis system consisting of value proposition, value support, and value retention, providing a way of thinking about the creative conceptualization of business models and decision making. According to Luo Min, Zeng Tao and Zhou Siwei (2005), a business model is a collection of strategic innovative intentions and achievable structural systems and institutional arrangements used by an organization to integrate the organization itself, its customers, supply chain partners, employees, shareholders, or stakeholders in order to obtain excess profits under the premise of clear external assumptions, external resources, and capabilities - the theory of value creation model. This type of theory considers the business model as the mode of value creation of a firm. According to Amit and Zot (2000), the business model is the focal point of corporate innovation and the decisive source of value creation for the firm for itself, its suppliers, its partners and its customers.Petrovic et al. (2001) consider the business model as a business system that creates value through a series of business processes. According to Margery Dubosen et al. (2002), a business model is a corporate structure and its network of partners that a firm develops for value creation, value marketing, and value delivery in order to generate customer relationship capital that is profitable and sustains revenue streams. Afuyah and Tusi (2000) suggest that the business model should be viewed as the order in which the firm operates and the decisive source of value creation for itself, its suppliers, partners and customers, on the basis of which the firm utilizes its resources, outperforms its competitors, and delivers greater value to its customers. -The real meaning of the model (also known as business model), the theoretical community has not formed a unified authoritative interpretation, can be summarized roughly divided into three categories: profit model theory. This theory believes that the business model is the enterprise's mode of operation and profitability. Accenture's Wang Bo and Peng Yali (2002) believe that there can be two understandings of the business model: one is the operational business model, that is, the operating mechanism of the enterprise. The second is the strategic business model, which refers to how a company changes itself in a dynamic environment in order to achieve sustainable profitability. According to Michael Lappa (2004), "A business model, in its most basic sense, is a way of doing business, a model on which a company depends for its survival, a model that generates revenue for the organization. According to him, a business model defines a company's position in the value chain and guides how it makes money. Getting you into an area that really brings out the core competencies of your business