Resources on Business Models

This Wikipedia entry explains that:

"A business model describes a company's:

value propositions: The company's offers which bundle products and services into value for the customer. A value proposition creates utility for the customer.

target customer segments: The customer segments a company wants to offer value to. This describes the groups of people with common characteristics for which the company creates value. The process of defining customer segments is referred to as market segmentation.

distribution channels: The various means of the company to get in touch with its customers. This describes how a company goes to market. It refers to the company's marketing and distribution strategy.

customer relationships: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.

value configurations: The configuration of activities and resources.

core capabilities: The capabilities and competencies necessary to execute the company's business model.

partner network: The network of cooperative agreements with other companies necessary to efficiently offer and commercialize value. This describes the company's range of business alliances.

cost structure: The monetary consequences of the means employed in the business model.

revenue model: The way a company makes money through a variety of revenue flows.

The process of business model design is part of business strategy. The implementation of a company's business model into organizational structures (e.g. organigrams, workflows, human resources) and systems (e.g. Information Technology architecture, production lines) is part of a company's business operations."

This Particletree post provides links to additional resources on business models, including:

"the “Freemium” Plan - Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base.

Business Models on the Web - A thorough review of potential business models including brokerage, advertising, Infomediary, merchant, manufacturer, affiliate, community, subscription, and utility.

Beyond Adsense: A Business Model – A checklist of the various business models available to the developers of live web applications and services.

Business Models – This essay is dedicated to Web2.0 and has a section dedicated to business models and how they suffer from a lack of defined revenue opportunities..."

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