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Business Models: By: Group 5

The document discusses business models and provides examples of different types of business models. It defines a business model as the conceptual structure that supports a business's viability, including its purpose, goals, and plans. Some basic business model types include manufacturers, distributors, retailers, franchises, and "bricks and clicks" models. Examples of companies with successful business models mentioned are Airbnb, Wikipedia, Alibaba, and Zara. The document emphasizes that a business model is important for a company's success as it explains how the business will make money and aids in attracting investors and partnerships.

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678 views13 pages

Business Models: By: Group 5

The document discusses business models and provides examples of different types of business models. It defines a business model as the conceptual structure that supports a business's viability, including its purpose, goals, and plans. Some basic business model types include manufacturers, distributors, retailers, franchises, and "bricks and clicks" models. Examples of companies with successful business models mentioned are Airbnb, Wikipedia, Alibaba, and Zara. The document emphasizes that a business model is important for a company's success as it explains how the business will make money and aids in attracting investors and partnerships.

Uploaded by

Allia Tuboro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BUSINESS

MODELS

By: Group 5
What Is a business
model?
A business model is the conceptual
structure supporting the viability of a
business, including its purpose, its goals
and its ongoing plans for achieving them.
Benefits of Business Model

• Maintaining a focus in corporate goal


• Reviewing operational practices
• Ensuring that the two benefits are
congruent
BASIC TYPES OF
BUSINESS MODELA
TYPES OF MODELS
• Manufacturer
A manufacturer takes raw materials and creates a product. A
manufacturer can also assemble pre-made components into a
product.

• Distributor
A distributor purchases products directly from a manufacturer
and resell to retail outlets or to the public.
• Retailer
A retailer purchases product from a distributor or wholesaler, and then sells those products to
the public.

• Franchise
Franchising is the practice of using another organization’s business model that has already been
successfully developed.

• Bricks and clicks business model


This model allows the user to order products online, but lets them pick up their order at a local store.

• Nickel and dime


With this model, cost-sensitive item will be at charged as low as possible and then charge for
every other minor services.
• Freemium
offers a basic service to consumers for free such as 30-day free trial
while charging for premium services for instance add-ons or
advanced services to paying members.

• HIGH TOUCH
a “person-centric” model in which the relationship between a
salesperson or other individuals have a major impact on the sale
and retention of the customer.

• LOW TOUCH
“Low-touch” business requires minimal involvement or assistance
from employee in selling a product or service.
Examples of Businesses
with Business Models
• Airbnb
Online marketing place for arranging or offering
lodging ,primarily homestays or tourism experiences.
• Wikipedia
 is a free online encyclopedia, created and
edited by volunteers around the world and
hosted by the Wikimedia Foundation.

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• Alibaba
Alibaba Group Holding Limited is a Chinese multinational technology
company specializing in e-commerce, retail, Internet, and technology. 

• ZARA
The company specializes in fast fashion, and products include clothing,
accessories, shoes, swimwear, beauty, and perfumes. It is the largest
company in the Inditex group, the world's largest apparel retailer. 
Why Business Model
matters?
Importance:
• Plays a vital role in the success of any company, as it explains
how the business will earn revenue
• Aids in acquiring investors and establishing partnership
• Stories that explain the how enterprise work.
• Offerse many value to a discrete group of customers
• Creates new, incremental designs
• Are variations on the generic value chain underlying all
business.

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