Business model means a set of planned activities
designed to result in a
profit in a marketplace.
There are eight key components of business model
1.Value Proposition
It defines how a companies product or service fulfills the need of customer.
2.Revenue model
It defines how a company earn money, generate profit or produce a return on investment.
following are major revenue models
A. advertising model
ex.Yahoo.com
B. subscription model
ex. television industry
C. transaction fee model
ex.e-bay
D. sales model
ex. flipcart
E. affiliate model.
ex. mypoints.com
3.Market Opportunity
It means the companies marketspace and overall potential finantial opportunites available to the firm in that marketspace.
4.Competitive Environment
It refers to the other companies selling same products and operating in same marketspace.It concentrate on other companies similar product values and how they are profitable.
5.Competitive Advantage
Firm or business achieve competitive advantage when they can produce better product in least price than other business competitors product price.
6.Market Strategy
It is the business plan which determines how you intend in marketspace and attract more customers.
7.Organizational Development
It means the though the company started by individual person with his single vision & mission,it is hard to handle multi-million doller company so organizational development is neccesary.
Companies that hope to grow and thrive need to have a plan for organizational development that describes how the company will organize the work that needs to be accomplished.
8.Management Team
The single most important element of a business model is the management team responsible for making the model work. A strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing business plans.
A strong management team may not be able to salvage a weak business model, but they should be able to change the model and redefine the business as it becomes necessary.
There are eight key components of business model
1.Value Proposition
It defines how a companies product or service fulfills the need of customer.
2.Revenue model
It defines how a company earn money, generate profit or produce a return on investment.
following are major revenue models
A. advertising model
ex.Yahoo.com
B. subscription model
ex. television industry
C. transaction fee model
ex.e-bay
D. sales model
ex. flipcart
E. affiliate model.
ex. mypoints.com
3.Market Opportunity
It means the companies marketspace and overall potential finantial opportunites available to the firm in that marketspace.
4.Competitive Environment
It refers to the other companies selling same products and operating in same marketspace.It concentrate on other companies similar product values and how they are profitable.
5.Competitive Advantage
Firm or business achieve competitive advantage when they can produce better product in least price than other business competitors product price.
6.Market Strategy
It is the business plan which determines how you intend in marketspace and attract more customers.
7.Organizational Development
It means the though the company started by individual person with his single vision & mission,it is hard to handle multi-million doller company so organizational development is neccesary.
Companies that hope to grow and thrive need to have a plan for organizational development that describes how the company will organize the work that needs to be accomplished.
8.Management Team
The single most important element of a business model is the management team responsible for making the model work. A strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing business plans.
A strong management team may not be able to salvage a weak business model, but they should be able to change the model and redefine the business as it becomes necessary.
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