Business model is one of the important research objects of management, and mainstream business administration courses such as MBA and EMBA all pay attention to "business model" to varying degrees. 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.

Extended data

The history of business model

Shop model

Generally speaking, the business model of service industry is more complicated than that of manufacturing and retail industry. The oldest and most basic business model is the "shopkeeper model", specifically, it is to open a shop where there are potential consumers and display their products or services.

A business model is a description of how an organization performs its functions and a summary of its main activities. It defines the company's customers, products and services. It also provides information about how companies are organized and how they generate revenue and profits. The business model, together with the strategy, dominates the company's main decisions. The business model also describes the company's products, services, customer markets and business processes.

Most business models rely on technology. Entrepreneurs on the Internet have invented many brand-new business models, relying entirely on existing and emerging technologies. Using technology, enterprises can reach more consumers with the least cost.

"bait and hook" mode

With the progress of the times, the business model has become more and more complicated. The "bait and hook" model-also known as the "razor and blade" model or the "bundled product" model-appeared in the early 20th century. In this mode, the price of basic products is extremely low, usually at a loss;

Related consumables or services are very expensive. Such as razor (bait) and blade (hook), mobile phone (bait) and talk time (hook), printer (bait) and ink cartridge (hook), camera (bait) and photos (hook), and so on. There is another interesting variation of this model: software developers distribute their text readers for free, but their text editors cost hundreds of dollars.

Reference source Baidu Encyclopedia-Business Model

Baidu Encyclopedia-Business Model Analysis