Post by account_disabled on Mar 7, 2024 1:03:22 GMT -5
The roots of the concept of a business model date back to 1954, when Peter Drucker defined it as one that answers the following questions: Who is the client? What does your client understand by value? How do we make money? What is the logic that explains how we can offer value to the customer at an appropriate cost? Since then, many people have tried to define this concept. Michael Lewis in his book The New New Thing: A Silicon Valley Story , simply says it's how you plan to make money. Joan Magretta describes it as a story to understand what a company does and how it does it. But it was Alex Osterwalder and Yves Pigneur, who developed the most complete template on which to build hypotheses using their business model canvas . The Internet was a great catalyst for business model innovation, although we have already seen that the term was born much earlier. However, many companies born in the dotcom era simply used the Internet as a new distribution channel, maintaining a traditional business model.
It was when the dotcom bubble burst that some companies, which were commercially viable, would become the technological giants that dominate the web. Companies such as Amazon, Google or eBay created, modified and Paraguay Mobile Number List consolidated their business models during this time. What is a business model? At its core, your business model is a description of how you make money, explaining how to deliver value to your customers at an appropriate cost. It is a framework for understanding, designing and testing the business idea, identifying how it can profitably generate revenue while creating value for customers. It's about experimenting, testing and modeling different ways of structuring revenue and cost streams. A successful business only needs to generate more money than it costs to make or market the product or service. It's that easy. There is no single definition of what a business model is, however, in practice it is used to shape ideas and create thriving businesses or rethink the changes necessary to meet customer needs.
What is not a business model? We should not confuse the business model with the business plan , while the business plan is a document with a specific objective that contains a series of assumptions about the business that are not proven, the business model is about experimentation. A business model is not an income generation strategy either, although monetization is an essential piece in the business model, it is only one of the components of a successful business model. The business model involves understanding operations, customer acquisition and retention or supply chain management in addition to monetization. In a business model there is usually one piece that plays a more important role compared to others, for example, in Coca-Cola's business model its distribution strategy is crucial, while for McDonald's, the key to the success of Its business model is to franchise its restaurants, which helped the company expand throughout the world.
It was when the dotcom bubble burst that some companies, which were commercially viable, would become the technological giants that dominate the web. Companies such as Amazon, Google or eBay created, modified and Paraguay Mobile Number List consolidated their business models during this time. What is a business model? At its core, your business model is a description of how you make money, explaining how to deliver value to your customers at an appropriate cost. It is a framework for understanding, designing and testing the business idea, identifying how it can profitably generate revenue while creating value for customers. It's about experimenting, testing and modeling different ways of structuring revenue and cost streams. A successful business only needs to generate more money than it costs to make or market the product or service. It's that easy. There is no single definition of what a business model is, however, in practice it is used to shape ideas and create thriving businesses or rethink the changes necessary to meet customer needs.
What is not a business model? We should not confuse the business model with the business plan , while the business plan is a document with a specific objective that contains a series of assumptions about the business that are not proven, the business model is about experimentation. A business model is not an income generation strategy either, although monetization is an essential piece in the business model, it is only one of the components of a successful business model. The business model involves understanding operations, customer acquisition and retention or supply chain management in addition to monetization. In a business model there is usually one piece that plays a more important role compared to others, for example, in Coca-Cola's business model its distribution strategy is crucial, while for McDonald's, the key to the success of Its business model is to franchise its restaurants, which helped the company expand throughout the world.