Scribd
Upload
165 views2 pages

Five Types of Business Model

The document discusses five common types of business models: subscription, bundling, crowdsourcing, franchise, and manufacturer. It provides examples of companies that use each model and briefly explains the key aspects of each. The subscription model involves recurring payments for access to services or products. The bundling model sells multiple products together at a discounted price. Crowdsourcing taps online users for information or work. Franchising allows businesses to be reproduced through purchased blueprints. Manufacturing converts raw materials into finished products.

Uploaded by

Eloisa Faye Dacanay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
165 views2 pages

Five Types of Business Model

The document discusses five common types of business models: subscription, bundling, crowdsourcing, franchise, and manufacturer. It provides examples of companies that use each model and briefly explains the key aspects of each. The subscription model involves recurring payments for access to services or products. The bundling model sells multiple products together at a discounted price. Crowdsourcing taps online users for information or work. Franchising allows businesses to be reproduced through purchased blueprints. Manufacturing converts raw materials into finished products.

Uploaded by

Eloisa Faye Dacanay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

FIVE TYPES OF BUSINESS MODEL & COMPANIES USING THE MODEL

● Subscription Model
A subscription business model can be applied to both traditional brick-and-mortar
businesses and online businesses alike. Essentially, as we explained above in reference
to Netflix, the customer pays a recurring payment on a monthly basis (or another
specified timeframe) for access to a service or product. A company may directly ship you
their product in the mail, or you may pay a fee to use an app.

Examples: In addition to Netflix, other businesses using the subscription model include
HelloFresh, Beer Cartel, StitchFix, as well as other streaming services like Hulu, HBO
Go, and Disney+.

● Bundling Model
Exactly like it sounds, the bundling business model involves companies selling
two or more products together as a single unit, often for a lower price than they would
charge selling the products separately.

This type of business model allows companies to generate a greater volume of


sales and perhaps market products or services that are more difficult to sell. However,
profit margins often shrink since businesses sell the products for less.

Examples: Businesses that use the bundling model include AT&T, Adobe Creative Suite,
and Burger King, as well as other fast-food companies that offer value meals or deals.

● Crowdsourcing Model
Crowdsourcing involves receiving opinions, information, or work from many
different people using the internet or social media. These types of business models allow
companies to tap into a vast network of talent without having to hire in-house
employees. Some traffic apps, for example, encourage drivers to report accidents in
real-time for the benefit of other app users.

Examples: Wikipedia, YouTube, IMDB, and Indiegogo, are all examples of businesses
using the crowdsourcing model.

● Franchise Model
Of all the different types of business models, the franchise model is perhaps the
one that people are most familiar with—after all, we each see and likely visit franchise
businesses often in our daily lives.

In short, a franchise works like this: A franchise is an established business


blueprint that is simply purchased and reproduced by the buyer, the franchisee. The
franchiser, or original owner, works with the franchisee to help them with financing,
marketing, and other business operations to ensure the business functions as it should.
In return, the franchisee pays the franchiser a percentage of the profits.

Examples: Starbucks, Domino’s, Subway, McDonald’s, and the UPS Store, are all
common examples of the franchise model.

● Manufacturer Model
One of the most traditional business models, the manufacturer model refers to
when a manufacturer converts raw materials into a product.

Companies like Dell Computers or Hewlett-Packard, both of which assemble


computers with parts manufactured by other companies, would still be considered
manufacturers.

Examples: Additional examples of this type of business model include Intel, Magic Bullet,
Black + Decker, and LG Electronics.

Reference: https://www.justbusiness.com/operations/what-is-a-business-model

You might also like