What are the business models?

What are the business models? Business models include: store model, bait and hook model, hardware and software model and other models.

1. Store model. The business model of service industry is more complicated than that of manufacturing and retailing. The oldest and most basic business model is the store model. Specifically, it is to open a shop where there are potential consumers and display their products or services.

2. Bait and hook model With the progress of the times, the business model has become more and more complicated. Bait and hook mode, also known as razor and blade mode, or binding mode, appeared in the early 20th century. In this mode, the price of basic products is extremely low, usually at a loss, and the price of related consumables or services is very expensive.

3. Software and hardware mode Apple combines hardware manufacturing with software development, uses software to increase the stickiness of users in hardware use, and uses the unique iOS system to carry these softwares on mobile phones. At this time, consumers have to consider the factors of software usage habits when upgrading hardware.

4. Other models The new business model was created by McDonald's and Toyota. In 1960s, the innovators were Wal-Mart and hybrid supermarkets, which meant the combination of supermarket and warehouse sales.

What is a business model? What are the six elements of business model? You can't call it a business model, it's just a distribution channel that opens the market through the information network. As one of the elements of the business model, this way of opening the market has become very common, and there is nothing innovative or unique.

The business model is more vulgar, that is, "business"? "Business", because in the final analysis, no matter how gorgeous the packaging is, it is still business. The essence of business model is to know what business you are doing and why you make money.

The whole business plan is actually written around the business model, which is the soul of the business plan. The business plan is for investors. You should be clear about what business you are doing, why and how to do it. You have to tell the investor what elements need to be invested in this transaction, how much money you want the investor to give you, how many shares he will get and how much money he will earn in the end.

These six elements include

1, positioning

If an enterprise wants to win in the market, it must first define its own position. Positioning is what enterprises should do, which determines what special products and services enterprises should provide to realize the value of customers. Positioning is the result of enterprise strategic choice, and it is also the starting point of other organic parts in the business model system.

There are many literatures and theories about positioning, and the most representative ones are the different understandings of positioning by Porter, trout and kotler respectively. In Porter's strategic theory system, the importance of positioning is emphasized. The low cost and differentiation of competitive strategy itself is a description of the future development trend of enterprises. Porter believes that strategy is to make choices in competition, and the essence of strategy is to choose not to do anything. Without choice, there is no need to choose, and there is no need to formulate strategies. In 1990s, Porter criticized Japanese enterprises for their general lack of strategy. In fact, it means that Japanese enterprises pay too much attention to the improvement of operational efficiency, especially after reaching the productivity boundary, they still ignore the direction choice of enterprises, and a large number of enterprises converge strategically. Therefore, in Porter's strategic system, positioning is actually what enterprises choose to do, and this positioning focuses on how enterprises develop at the company level.

2. Business system

Business system refers to the business links needed by enterprises to achieve positioning, the roles played by partners and the ways and contents of cooperation and transactions between stakeholders. We can understand the structure of business system from two levels: industry value chain, enterprise internal value chain and the role of partners.

Business system is the core of business model. Efficient operation of business system is not only a necessary condition for enterprises to win competitive advantage, but also may become competitive advantage itself. An efficient business system needs to identify related activities according to the positioning of enterprises and integrate them into a system, and then determine the roles of stakeholders according to the resource capacity of enterprises.

The relationship and structure of value chain activities related to enterprises, such a business system of cooperation between internal and external stakeholders built around enterprise positioning, will form a value network and clearly define the roles played by customers, suppliers and other partners in the process of influencing enterprises to obtain value through business models.

3. Key resource capacity

Business system determines the activities to be carried out by enterprises, and to complete these activities, enterprises need to master and use a set of complex tangible and intangible assets, technologies and capabilities, which we call "key resources and capabilities".

Key resources and capabilities are important resources and capabilities needed to make business systems run. One of the key tasks of any business model construction is to make clear the resources and capabilities needed for the effective operation of the business model of an enterprise, and how to acquire and establish these resources and capabilities.

One of the key tasks of any business model construction is to understand what important resources and capabilities an enterprise needs, how they are distributed, and how to acquire and establish these resources and capabilities. Not all resources and capabilities are equally precious, and not every resource and capability is needed by an enterprise. What an enterprise really needs is only the resource capacity that is compatible with its positioning, business system, profit model and cash flow structure and can reinforce each other.

4. Profit model

Profit model refers to how an enterprise obtains income, allocates costs and earns profits. Profit model is the expression of enterprise interests in the interest distribution pattern among enterprise stakeholders under the premise that the ownership and structure of each value chain in a given business system have been determined. A good profit model can not only bring benefits to enterprises, but also compile a stable win-win value network for enterprises.

How to pay by customers, how much to pay, and how to distribute the created value among enterprises, customers, suppliers and partners are all questions to be answered by the income structure of enterprises.

5. Free cash flow structure

The structure of free cash flow is the situation that cash income generated in the course of enterprise operation is deducted from cash investment, and its discounted value reflects the investment value of enterprises adopting this business model. Different cash flow structures reflect the differences in enterprise positioning, business system, key resource capacity and profit model, reflect the different characteristics of enterprise business model, and affect the growth rate of enterprises.

The speed of investment determines the level of enterprise investment value, the growth rate of enterprise investment value and the degree favored by the capital market.

6. Enterprise value

The enterprise value, that is, the investment value of the enterprise, is the discounted value of the free cash flow that the enterprise expects to generate in the future.

If positioning is the starting point of business model, then the investment value of enterprises is the destination of business model and the standard to judge the quality of business model. The investment value of an enterprise is determined by its growth space, growth ability, growth efficiency and growth speed. A good business model can get twice the result with half the effort, that is, the input generation efficiency is high and the effect is good, including less input, low operating cost and strong ability of sustainable income growth.

How many modules does the business model contain? The business model includes the following modules.

Value proposition: the value that a company can provide to consumers through its products and services. The value proposition confirms the practical significance of the company to consumers. Consumer target group: the consumer group targeted by the company. These groups have certain characteristics, so that the company can create value (for these * * *). The process of defining consumer groups is also called market segmentation. Distribution channels: various channels used by companies to reach consumers. This paper expounds how the company develops the market. It involves the company's marketing and distribution strategy. Customer relationship: the relationship between a company and its consumer groups. What we call customer relationship management is related to this. Value distribution: the distribution of resources and activities. Core competence: that is, a company's ability and qualification to implement its business model. Value chain: related support activities to enhance the value of goods and services for customers. Cost structure: monetary description of tools and methods used. Income model: that is, the way a company creates wealth through various income streams.

What are the business models of direct selling? 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 the company can provide to customers, and the internal structure, partner network and relationship capital of the company to realize (create, promote and deliver) this value and generate sustainable profitable income.

There are several business models.

First, the traditional business model: online shop model

Generally speaking, the business model of service industry is more complicated than that of manufacturing and retail industry. The oldest and most basic business model is "ShopkeeperModel", specifically, it is to open a shop where there are potential consumers and display their products or services.

A business model is a description of how an organization performs its functions and a summary of its main activities. It defines the company's customers, products and services. It also provides information about how companies are organized and how they generate revenue and profits. The business model, together with the strategy, dominates the company's main decisions. The business model also describes the company's products, services, customer markets and business processes.

Most business models rely on technology. Entrepreneurs on the Internet have invented many brand-new business models, relying entirely on existing and emerging technologies. Using technology, enterprises can reach more consumers with the least cost.

Second, the "bait and hook" mode.

With the progress of the times, the business model has become more and more complicated. "BaitandHook" mode-also known as "RazorandBlades" mode or "TiedProducts" mode-appeared in the early 20th century.

In this mode, the price of basic products is extremely low, usually at a loss; Related consumables or services are very expensive. Such as razor (bait) and blade (hook), mobile phone (bait) and talk time (hook), printer (bait) and ink cartridge (hook), camera (bait) and photos (hook), and so on.

Another interesting change of this model is that software developers distribute their text readers for free, but their text editors cost hundreds of dollars.

Third, other modes.

In 1950s, McDonald's and Toyota created new business models.

In the 1960s, the innovators were Wal-Mart and supermarkets.

In 1970s, a new business model appeared in the operation of FedEx and Toys R Us toy stores.

In the 1980s, it was Blockbuster, Home Depot, Intel and Dell.

In the 1990s, it was Southwest Airlines, Netflix, Yi Bei, Amazon and Starbucks.

The business model without careful consideration is a serious problem for many internet companies.

Every innovation of business model can give the company a competitive advantage in a certain period of time. But with the change of time, the company must constantly reflect on its business design. As the value orientation (of consumers) shifts from one industry to another, enterprises must constantly change their business models. The success or failure of a company ultimately depends on whether its business design meets the priority needs of consumers.

Fourth, e-commerce business model.

Changing the model is the most effective business model at present and even in the future.

E-commerce usually refers to a new business operation mode in which buyers and sellers conduct various business activities without meeting each other in a wide range of business and trade activities around the world under the open network environment of the Internet, and realize online shopping for consumers, online trading for merchants and online electronic payment, as well as various business activities, trading activities, financial activities and related comprehensive service activities.

Countries, scholars and business people have given many different definitions according to their respective positions in e-commerce and different angles and degrees of participation in e-commerce.

E-commerce is divided into ABC, B2B, B2C, C2C, B2M, M2C, B2A (namely B2G), C2A (namely C2G), O2O, etc.

What business content (service, commodity, production) does the business model design include?

Supply side and demand side

Specific operation flow

When designing, you need to understand that the core operational advantage is the feasibility of this business model.

The design of business model will involve many aspects, such as the providers of product content (services, commodities, production) and the needs of customers. When designing the specific operation process, we need to understand the core operation advantages, but I think it is better to leave the business model design to professionals. A business model expert like Chen.

Which business model is better? Teacher Wang Shunjie's free model involves various industries and fields. In addition to diverting customers, locking customers, referring customers, clearing inventory quickly, financing quickly and splitting branches quickly, he also has high attainments in establishing his own brand, and Mr. Wang often gives entrepreneurial guidance to college students, so for entrepreneurs, Mr. Wang Shunjie can save you a lot of detours.