Business model

See also: Economic model

A business model or model of company is " the whole of the mechanisms allowing a company to create value through the proposal for a value made with its customers, his architecture of value (including/understanding its chain of internal and external value) and to collect this value to transform it into profits" (Lehmann-Ortega and Schoettl, 2005). The way in which the company intends to generate Turnover and profits is called “returned model”.

This model summarizes the way in which the company envisages to serve its customers. It implies as well the development of the Stratégie of company as its implementation (Plan of company).

The quality of a model of company is one of the key factors of improvement of the valorization of the immaterial Capital of a company, and particularly of its relational capital.

Characterization

Chesbrough and Rosenbloom describe 6 functions of the Business model:

  • To articulate the proposal for a value
  • To identify a market segment
  • To define the structure of the chain of value in the company
  • To specify the mechanisms of generation of incomes
  • To define the position of the company in the external chain of value
  • To formulate a competing strategy

A Model Business answers the following questions:

  • Comment the customers are selected?
  • Comment the offer of products is elaborate?
  • Comment can one make himself useful for the customer?
  • Comment the customers are conquered and fidélisés?
  • Comment the market is covered (Which are the strategies of publicity and distribution)?
  • How the tasks to be realized are defined?
  • Comment the resources are allocated?
  • Comment the profit is generated?

One speaks sometimes about “economic model” or “economic French equation”, but that gums the functional aspect of microeconomy and can induce a confusion with the macroeconomics which employs the theoretical concept of model.

Types of models of company

In general, the models of service company are more elaborate than those of the industrial companies and distribution. The oldest model is that du' store of détail' . It implies the establishment of a store on a site where potential customers are likely to be and to post a product or a service.

With time the models became more sophisticated. The model of company known as of the soft food and the hook (or the product dependant or of the razor and the blades) made its appearance at the beginning of the 20th century. It consists in selling a product at a very moderate price, sometimes even by losing money (from where the name soft food) then to invoice very high sums for the purchase of the refills or all the products or related services (with the hook). Many examples exist such as the razors and the blades of refills, the cellphones and the fixed prices, the cameras and pullings. An alternative of this model is the company which offers free the software to read the files of a certain format and invoice a tidy sum of money for the software which makes it possible to create the files of this format.

In years 1950 of new models of company appeared with companies like McDonald's and Toyota. In the years 1970 the innovation came from large distribution (Wal-Mart in the United States and Carrefour or Auchan in France). In the years 1980 it was Blockbuster, Home Deposit, Intel and Dell, in the years 1990 the airline company Southwest Airlines, Amazon.com, and Starbucks. However of many companies Internet encountered difficulties because of their badly thought models of company.

All the innovations concerning the models of company can bring to the companies substantial competitive advantages. But times change and the companies must continue to make evolve/move their model of company. The value moves of a sector with another and that makes necessary to make evolve/move the models employed. Ultimately the success of a company depends initially on the adequacy between the model and the priorities of its customers.

See too

References

  • Xavier Lecocq, Benoit Demil, Vanessa Warnier (2006), “the business model, a strategic model of analysis”, the Expansion Review Management, n°123, winter.
  • Vanessa Warnier, Xavier Lecocq, Benoit Demil (2004), " The business model, forgotten stratégie" , Conference AIMS 2004 *Bernard Main, Gregoire Aladjidi, the Models Businesses of the new economy , Dunod 1999
  • Laurence Lehmann-Ortega, Jean Marc Schoettl, '' Rupture and disturbance: two forms of the strategic innovation '' AIMS 2005
  • Estelle JOUISON, theoretical Delimitation of the Business Model AIMS 2005
  • Henry Chesbrough and Richard S. Rosenbloom The Role off the Model Business in Capturing Been worth from Innovation: Obviousness from Xerox Corporation' S Technology Spinoff Companies, Industrial and Corporate Changes 2002, flight 11, Nb 3, p529-555

Internal bonds

External bonds

  • Specificities of the Business Model Open-Source (Fr) by Ludovic Dubost

  • the model “associated services” privileged for the open editors source by Philippe Nieuwbourg.
  • What has business model? (In)
  • New business models (In)
  • Business models one the Web Typology of the businesses models on Internet (Brokerage, Advertizing, Infomediary, Merchant, To manufacture, Affiliate, Community, Subscription, Utility)

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