What is Business Model definition/concept

When a company raises the question of how to satisfy its customers’ needs, we are faced with a business model . And if an entrepreneur intends to put into practice a business project, he must clarify what he wants to do, that is, what his business model will be.

Any business model is a general approach that seeks to answer a series of questions:

1) Who will be the customer of my business?

2) What benefits will the product or service I sell bring to the customer?

3) How do I differentiate myself from my competitors?

4) How will I sell my products?

5) What services will my customers receive before, during and after purchase?

6) Where will I get money to establish the business?

7) What resources do I need to make the business work?

The specific answers to these questions or their similar forms form a business model. Consequently, a business model serves to analyze a global strategy and to anticipate possible setbacks.

Tips for putting a good business model into practice

A viable business proposal is one that provides a useful response to a consumer’s need . For this to be feasible, it is important to design a business model that includes a number of key elements:

1) differentiate from competitors and create alternative solutions to traditional ones;

2) create marketing strategies to attract customers;

3) precisely define the market segment you want to conquer.

particular scenarios

  • – The internet auction pages bid for a product and the final buyer is the one who pays the highest value for the auctioned product;
  • – Enrollment models where a user periodically pays a fee for a service (eg insurance companies are based on this system ).
  • – Platforms that unite buyers and sellers and are known as marketplace;
  • – The franchising system, from which a percentage of the benefits to the owner of a brand is paid;
  • – Internet sales known as flash self, through an internet portal, propose sales in a short period of time and with great offers;
  • – Internet comparators allow users to know the best prices on a particular sector (hotels, insurance, travel, etc.).

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