Business model

Example business models over the years

• The subscription business model
• The razor and blades business model (bait and hook)
• The pyramid scheme business model
• The multi-level marketing business model
• The network effects business model
• The monopolistic business model
• The cutting out the middleman model
• The auction business model
• The online auction business model
• The bricks and clicks business model
• The loyalty business models
• The collective business models
• The industrialization of services business model
• The servitization of products business model
• The low-cost carrier business model
• The online content business model
• The freemium business model
• The premium business model
• The direct sales model
• The professional open-source model
• Various distribution business models

Do Business Models Matter?

Malone et al.^[11] at MIT find that some business models, as defined by them, indeed performed better than others in a dataset consisting of the largest U.S. firms, in the period 1998 through 2002, while they did not prove whether or not the existence of a business model mattered or not.

Related Concepts

The process of business model design is part of business strategy. The implementation of a company's business model into organizational structures (e.g. organigrams, workflows, human resources) and systems (e.g. information technology architecture, production lines) is part of a company's business operations. It is important to understand that business modeling commonly refers to business process design at the operational level, whereas business models and business model design refer to defining the business logic of a company at the strategic level.

See also

• Business model design
• Business process modeling
• Business plan
• Business rule
• Growth Platforms
• Market forms
• Marketing
• Marketing plan
• Monopoly
• Strategic management
• Strategic planning
• Value migration

Notes

1. ^ Not to be confused with the term business architecture that structures the accountability over business activities
2. ^ The Role of the Business Model in capturing value from Innovation: Evidence from XEROX Corporation’s Technology Spinoff Companies., H. Chesbrough and R. S. Rosenbloom , Boston, Massachusetts, Harvard Business School, 2000.
3. ^ Leading the revolution., G. Hamel, Boston, Harvard Business School Press, 2000.
4. ^ Changing Business Models: Surveying the Landscape, J. Linder and S. Cantrell, Accenture Institute for Strategic Change, 2000.
5. ^ Developing Business Models for eBusiness., O. Peterovic and C. Kittl et al., International Conference on Electronic Commerce 2001, 2001.
6. ^ Place to space: Migrating to eBusiness Models., P. Weill and M. R. Vitale, Boston,Harvard Business School Press, 2001.
7. ^ Value-based Requirements Engineering - Exploring Innovative e-Commerce Ideas, J. Gordijn, Amsterdam, Vrije Universiteit, 2002.
8. ^ Internet Business Models and Strategies, A. Afuah and C. Tucci, Boston, McGraw Hill, 2003.
9. ^ Focus Theme Articles: Business Models for Content Delivery: An Empirical Analysis of the Newspaper and Magazine Industry, Marc Fetscherin and Gerhard Knolmayer, International Journal on Media Management, Volume 6, Issue 1 & 2 September 2004 , pages 4 - 11, September 2004.
10. ^ ^{a b} The Business Model Ontology - A Proposition In A Design Science Approach, Thesis by Alexander Osterwalder, 2004
11. ^ Do Some Business Models Perform Better than Others?, Malone et al., May 2006

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