How Many Types of Business Model Are There in The World? Make Them Clear

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LÊ THỊ TUYẾT DUY - 1922202010552

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How many types of business model are there in the world? Make
them clear.
A business model is an outline of how a company plans to make money
with its product and customer base in a specific market. At its core, a
business model explains four things:
What product or service a company will sell.
How it intends to market that product or service.
What kind of expenses it will face.
How it expects to turn a profit.
Because there are so many types of businesses out there, business models
are constantly changing — and although we'll discuss some of the most
common types below — there is no one-size-fits-all model that can be
applied to every business.
Types of business model:
1. Subscription model
The subscription business model is a business model in which a customer
must pay a recurring price at regular intervals for access to a product.
2. Bundling model
A bundling business model focuses on packaging together
complementary goods and/or services into a single offering.
3. Freemium model
The basic framework goes like this: a software company hosts and
provides a proprietary tool for their users to freely access, such as an app
or tool suite. However, the company withholds or limits the use of certain
key features that, over time, their users will likely want to use more
regularly. To gain access to those key features, users must pay for a
subscription.
4. Razor blades model
The razor and blades business model is a business model in which one
item is sold at a low price (or given away for free) in order to increase
sales of a complementary good, such as consumable supplies. For
example, inkjet printers require ink cartridges, and game consoles require
accessories and software.
5. Product to service model
Product to service model is a business model that allows customers to
purchase a desired result rather than the equipment that delivers that
result. For example, imagine that you are the owner of a company that
makes scooters. Let’s say you need two pieces of metal welded together.
You might ask another company to weld the pieces of metal together
instead of purchasing a welding machine yourself. In essence, this
example shows how the product to service business model works.
Companies that follow this type of business model allow customers to
purchase a result rather than the equipment that delivers that result.
6. Leasing model
Under a leasing business model, a company buys a product from a seller.
That company then allows another company to use the product they
purchased for a periodic fee. Leasing agreements work best with big-
ticket items like manufacturing and medical equipment.
7. 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.
8. One-for-one model
As the name suggests, the one-for-one business model means that a
company donates one item to a charitable cause for every item that is
purchased. This model appeals to the charitable nature and social
consciousness of customers to encourage them to purchase a product or
service, while also allowing both the business and the customer to
actually engage in philanthropic efforts.
9. Franchise model
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.
10. Distribution model
A company operating as a distributor is responsible for taking
manufactured goods to the market.
Distribution business model is a business model that facilitates that
distribution of goods and services from the producers / manufacturers to
the end users / consumers; it is a business model that ensures that
products and services reach target customers in the most direct and cost-
efficient manner.
11. Manufacturer model
The manufacturer business model utilizes raw materials to create a
product to sell. This type of business model might also involve the
assembly of prefabricated components to make a new product, such as
automobile manufacturing.
12. Retailer model
A retailer is the last link in the supply chain. These businesses purchase
goods from distributors and then sell them to customers for a price that
will both cover expenses and turn a profit. Retailers may specialize in a
particular niche, such as kitchenware, or carry a range of products.

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