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Mis Group Assignment
Mis Group Assignment
GROUP MEMEBERS
NAME ID NO
1. MAHLET TEFERA M/E/WE/MBA/278/15
2.DEGIF SIFFIR M/E/WE/MBA/350/15
3. NETSANET MENGISTE M/E/WE/MBA/282/15
4. HABTIE SETEGN M/E/WE/MBA/263/15
5. ABEBA DEBASSU M/E/WE/MBA/245/15
6. HENOK TESFAYE M/E/WE/MBA/272/15
7. MEDHANIT ALAMIR M/E/WE/MBA/349/15
8. BEREKET YENACHEW M/E/WE/MBA/169/15
9.MESERET YERGA M/E/WE/MBA/365/15
10. SOSINA ALEMU M/E/WE/MBA/364/15
Submitted to:
June, 2023
Addis Ababa
Part I
1. Samsung, Apple, and SMADL:
Samsung: Business Type: Conglomerate, Founded: 1938 by Lee Byung-chul, Number of
Employees: ~320,000, Revenue (2020): KRW 236.8 trillion (approx. USD 208.5 billion),
Net Income (2020): KRW 26.4 trillion (approx. USD 23.2 billion), Total Assets (2020):
KRW 352.7 trillion (approx. USD 310.4 billion).
Apple: Business Type: Technology, Founded: 1976 by Steve Jobs, Steve Wozniak, and
Ronald Wayne, Number of Employees: ~147,000, Revenue (2020): USD 274.5 billion, Net
Income (2020): USD 57.4 billion, Total Assets (2020): USD 323.9 billion.
SMADL: Business Type: Startup, founded: 2021 by John Doe, Number of Employees:
~50, Revenue (2022): USD 2 million (estimated), Net Income (2022): USD 0 (estimated),
Total Assets (2022): USD 1 million (estimated).
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5. Number of Employees: The number of employees for each company is not publicly
disclosed.
6. Revenue and Total Assets: The revenue and total assets for each company are not publicly
disclosed.
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(2020): USD 56.6 billion, Net Income (2020): USD 3.3 billion, Total Assets (2020): USD
35.7 billion.
Dell: Business Model: Technology hardware and software, Founded: 1984 by Michael
Dell, Business Type: Public, Number of Employees: ~165,000, Revenue (2020): USD 92.2
billion, Net Income (2020): USD 5.5 billion, Total Assets (2020): USD 63.7 billion.
Sony: Business Model: Technology hardware and software, Founded: 1946 by Masaru
Ibuka and Akio Morita, Business Type: Public, Number of Employees: ~110,000, Revenue
(2020): JPY 8.3 trillion (approx. USD 75.8 billion), Net Income (2020): JPY 582 billion
(approx. USD 5.3 billion), Total Assets (2020): JPY 21.1 trillion (approx. USD 193.1
billion).
6. Commercial Bank of Ethiopia and Zemen Bank:
Commercial Bank of Ethiopia: Business Model: Commercial banking services, Founded:
1942, Business Type: State-owned, Number of Employees: ~40,000, Revenue (2019/20):
ETB 71.4 billion (approx. USD 1.6 billion), Net Income (2019/20): ETB 17.8 billion
(approx. USD 395 million), Total Assets (2019/20): ETB 794.5 billion (approx. USD 17.6
billion).
Zemen Bank: Business Model: Commercial banking services, Founded: 2007, Business
Type: Private, Number of Employees: ~2,000, Revenue (2019/20): ETB 2.6 billion
(approx. USD 58 million), Net Income (2019/20): ETB 427 million (approx. USD 9.5
million), Total Assets (2019/20): ETB 20.3 billion (approx. USD 450 million)..
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Part II
Subscription model
A subscription business model is a sales strategy where a customer pays a recurring fee at
regular intervals to access a product or service. This model has become increasingly
popular in recent years, as more companies have turned to a subscription-based approach
to generate revenue. The subscription model is used across various industries, including
software, media, entertainment, meal delivery, and more.
The subscription model offers several benefits to customers and businesses. For customers,
it provides a convenient way to access products or services without the hassle of purchasing
them individually. For businesses, it provides a steady stream of revenue and helps to
establish a loyal customer base. Additionally, the subscription model allows businesses to
forecast revenue more accurately, which can be helpful for budgeting and financial
planning.
Blending model
The blending business model refers to a strategy in which a company merges or combines
different business models to create a unique and successful approach. This approach is
often used when a company wants to expand its offerings, enter new markets, or increase
profitability. Blending business models allows a company to benefit from the advantages
of different models while mitigating the risks associated with a single model. Examples of
blended business models include subscription-based services that also offer one-time
purchases, and retail stores that also offer online sales.
Freemium model
The freemium business model is a marketing strategy that involves offering a basic level
of a product or service for free, while charging for additional features or advanced
functionality. The term "freemium" is a combination of "free" and "premium."
In a freemium business model, the free version of a product or service is often limited in
terms of functionality, storage space, or other features. This basic version is intended to
provide customers with a taste of what the product or service can offer, and to encourage
them to upgrade to a paid version that offers more features or functionality.
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Razor blade model
The razor blade business model is a pricing strategy where a company sells a product, such
as a razor handle, at a low or even a loss-making price, and then generates profits through
the ongoing sale of related consumable products, such as razor blades.
The concept of the razor blade business model was first introduced by King C. Gillette,
who founded the Gillette Safety Razor Company in the early 1900s. Gillette's innovation
was to create a razor with a disposable blade, allowing for a more convenient and hygienic
shaving experience. Gillette sold the razor handle at a low price, and then made a profit
through the ongoing sale of replacement razor blades.
The razor blade business model has since been adopted by other companies in various
industries, including printers, gaming consoles, and even mobile phones. For example,
printer companies often sell printers at a low price and make their profits through the
ongoing sale of ink cartridges. Gaming console manufacturers often sell consoles at a low
price and generate profits through the sale of games and accessories.
Product to service model
A product to service business model is a strategy in which a company transforms its
traditional product offerings into a service-based business model. This shift allows
companies to provide not only the product itself but also a range of supplementary services
to enhance the customer experience. For example, instead of simply selling a car, a
company could offer a subscription service that includes regular maintenance, repairs, and
upgrades.
The advantages of this model include increased customer loyalty and recurring revenue
streams, as well as opportunities for upselling and cross-selling. It also allows companies
to better understand their customers' needs and preferences, which can inform product
development and marketing strategies.
However, implementing a product to service business model requires significant
investment in infrastructure and technology to enable the delivery of services. It also
requires a shift in mindset and culture within the organization, as well as a deep
understanding of the target market and their preferences.
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Leasing model
The leasing business model is a financial strategy that involves renting or leasing a product
or asset to a customer for a set period of time, in exchange for regular payments. The
customer does not own the asset at the end of the lease period, but instead has the option
to renew the lease, return the asset, or purchase it at a predetermined price.
Leasing can be used for a wide range of products and assets, including real estate, vehicles,
equipment, and technology. The leasing business model can offer several benefits to both
the lessor and the lessee. For the lessor, leasing can generate a steady stream of income
and provide a way to retain ownership of the asset while still generating revenue. For the
lessee, leasing can provide access to expensive or specialized equipment without the need
for a large upfront investment, and can also offer tax benefits.
Crowdsourcing model
Crowdsourcing is a business model in which a company outsources tasks or projects to a
large, undefined group of people or community, typically via the internet. The purpose of
crowdsourcing is to tap into the collective intelligence, skills, and creativity of the crowd
to generate new ideas, solve problems, or complete tasks more efficiently.
There are different types of crowdsourcing, such as crowdfunding, which involves raising
funds from a large group of people to finance a project, and crowd voting, which involves
soliciting feedback and ideas from a community to inform decision-making.
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Franchise model
A franchise business model is a type of business arrangement in which one company, the
franchisor, grants another company, the franchisee, the right to use its trademark, products,
services, and business model in exchange for a fee or royalty. The franchisee is typically
required to follow a set of guidelines and procedures established by the franchisor,
including product and service standards, marketing strategies, and operating procedures.
The franchise business model allows companies to expand their operations and market
reach without the cost and risk associated with opening new locations themselves. It also
provides entrepreneurs with a proven business model and established brand recognition, as
well as training and support from the franchisor.
Distribution model
A distribution business model is a type of business model that involves the distribution or
sale of goods or services from a manufacturer or supplier to a retailer or end-user. The
distribution model typically involves a network of intermediaries, such as wholesalers,
distributors, and retailers, who facilitate the movement of products from the manufacturer
to the end-user.
The distribution business model allows companies to focus on their core competencies,
such as product development and manufacturing, while outsourcing the logistics and sales
activities to intermediaries. The model also provides retailers and end-users with access to
a wide range of products and services, as well as the convenience of one-stop shopping.
Manufacturer model
A manufacturer business model is a type of business model in which a company produces
and sells goods or products directly to retailers or end-users. The manufacturer is
responsible for all aspects of the production process, from sourcing raw materials to
manufacturing and distribution.
The manufacturer business model allows companies to have greater control over the quality
and consistency of their products, as well as the ability to customize and adapt their
products to changing market demands. It also allows for greater economies of scale, as
manufacturers can produce large quantities of products more efficiently than smaller
businesses.
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Retailer model
A retailer business model is a type of business model in which a company buys products
or goods from manufacturers or wholesalers and sells them directly to end-users or
consumers. Retailers can sell their products through various channels, including brick-and-
mortar stores, e-commerce websites, and mobile apps, among others.
The retailer business model allows companies to generate revenue by marking up the price
of the products they sell. Retailers can also differentiate themselves from their competitors
by offering unique products, superior customer service, and convenient shopping
experiences.
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These are just a few examples of the diverse range of business models that are found or
implemented in Ethiopia. Each model has its own strengths and challenges, and can offer
opportunities for both business growth and social impact.
There are several business models that are not widely adopted or implemented in the Ethiopian
context, including:
1. Subscription Model: This involves charging customers a recurring fee for access to a
product or service.
Why: The Ethiopian market may not be ready for subscription-based models, as many consumers
may prefer to pay for products or services on a one-time basis rather than committing to a recurring
payment.
2. Sharing Economy Model: This involves the sharing of resources, such as vehicles or
accommodation, among multiple users.
Why: The sharing economy model may not be feasible in Ethiopia due to factors such as limited
access to technology and infrastructure, as well as cultural attitudes towards sharing.
3. Freemium Model: This involves offering a basic version of a product or service for free,
while charging for premium features.
Why: The freemium model may not be practical in Ethiopia, as the market may not be large enough
to support a significant number of paying customers for premium features.
4. Direct-to-Consumer Model: This involves selling products or services directly to
consumers, without the need for middlemen such as retailers or distributors.
Why: The direct-to-consumer model may not be practical in Ethiopia, as traditional retail channels
such as open-air markets and small shops are still prevalent and preferred by many consumers.
5. Circular Economy Model: This involves designing products and services with a focus on
sustainability and waste reduction, using a closed-loop approach to resource management.
Why: The circular economy model may not be feasible in Ethiopia due to limited awareness and
infrastructure around waste management and recycling.
These are just a few examples of business models that are not widely adopted or implemented in
the Ethiopian context. While some of these models may be feasible in certain industries or
contexts, they may face challenges related to market size, infrastructure, and cultural attitudes
towards business and consumption.
Adopting a business model in the Ethiopian context can offer several benefits, including:
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1. Opportunity for Growth: Adopting a successful business model can offer companies the
opportunity to expand their operations and increase their market share in Ethiopia.
2. Increased Efficiency: A well-designed business model can help companies streamline
their operations and reduce costs, leading to increased profitability.
3. Social Impact: Many business models can have a positive social impact in Ethiopia, such
as creating jobs, improving access to goods and services, and promoting economic
development.
However, there are also several challenges to adopting a business model in the Ethiopian context,
including:
1. Limited Infrastructure: Ethiopia may have limited infrastructure in certain areas, such as
transportation, energy, and telecommunications, which can pose challenges for companies looking
to adopt certain business models.
2. Limited Market Size: The Ethiopian market may be relatively small compared to other
countries, which can limit the potential for growth and profitability.
3. Cultural Attitudes: Ethiopia has a unique culture and business environment, which can pose
challenges for companies trying to adopt business models that may not be well-suited to the local
context.
4. Regulatory Environment: Ethiopia may have complex or restrictive regulations around certain
business models, such as foreign investment, which can pose challenges for companies looking to
operate in the country.
5. Limited Access to Funding: Access to funding and investment may be limited in Ethiopia,
which can make it difficult for companies to adopt certain business models that require significant
investment.
Overall, adopting a business model in the Ethiopian context can offer significant benefits, but
requires careful consideration and adaptation to the local environment and cultural context.
Companies should take into account the unique challenges and opportunities of the Ethiopian
market when developing and implementing their business models.
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