What is a business model?

1. Business model is one of the important research objects of management, and mainstream business administration courses such as MBA and EMBA have paid different degrees of attention to "business model".

In the process of analyzing the business model, we mainly pay attention to the relationship between a class of enterprises and partners such as users and suppliers in the market, especially the logistics, information flow and capital flow between them.

Business model: There are all kinds of trading relationships and connection modes between enterprises, between departments of enterprises, and even between customers and channels, which are called business models.

2. Profit model is one of the important research objects of management. Profit model refers to the income structure, cost structure and corresponding profit target of enterprises divided by stakeholders.

Profit model is a systematic method to identify and manage the value of operating factors and find profit opportunities in operating factors, that is, to explore the profit source, production process and output mode of enterprises.

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Extended data:

Business model:

It forms products and services (output variables) that consumers can't buy independently, so it has the characteristics that it can be copied by itself and others can't, or it occupies a dominant position in the market.

Any business model is a three-dimensional model composed of customer value, enterprise resources and capabilities, and profit model.

The White Paper on Business Model Innovation written by Harvard University professors mark johnson, Christensen and SAP CEO Henning Kagermann summarizes these three elements as follows:

"Customer value proposition" refers to the task that an enterprise needs to complete when providing services or products to customers or consumers at a given price. "Resources and production process" is a specific business model that supports customer value proposition and profit model.

The company that has been engaged in business model research and consulting for a long time believes that a successful business model has three characteristics:

First of all, a successful business model should provide unique value. Sometimes this unique value may be a new idea; And more often, it is often a unique combination of products and services.

This combination can provide additional value for customers; Either let customers get the same income at a lower price or get more income at the same price.

Second, the business model is difficult to imitate. Enterprises can improve the entry threshold of the industry by establishing their own uniqueness, such as careful care for customers and unparalleled execution ability, so as to ensure that the source of profits is not infringed.

For example, the direct selling model (it can't be called a business model just by "direct selling"), everyone knows how it works, and Dell is the benchmark of direct selling.

But it is difficult to copy Dell's model, because behind "direct selling" is a set of resources and production processes that are extremely difficult to copy.

Third, a successful business model is down-to-earth. Enterprises should live within their means. This seemingly self-evident truth is not easy to do year after year, day after day.

In reality, many enterprises, whether traditional or new, want to know where their money comes from and why customers value their products and services.

Even how many customers actually do not bring profits to the enterprise, but are eroding the income of the enterprise, and other key issues are not well understood.

Profit model can be divided into spontaneous profit model and conscious profit model.

The profit model of the former is formed spontaneously, and enterprises lack a clear understanding of how to make profits and whether they can make profits in the future. Although the enterprise is profitable, its profit model is not clear and definite, and its profit model is characterized by concealment, fuzziness and lack of flexibility.

The latter, that is, conscious profit model, is formed by enterprises consciously adjusting and designing profit model by summing up profit practice. It has the characteristics of clarity, pertinence, relative stability, environmental adaptability and flexibility.

In the initial stage of market competition and the immature stage of enterprise growth, the profit model of enterprises is mostly spontaneous, with the intensification of market competition and the continuous maturity of enterprises.

Enterprises began to pay attention to the study of market competition and their own profit model. Even so, not all enterprises are lucky to find a profit model.

Profit analysis is mainly to improve the existing profit model through the analysis of profit model.

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