Compare and contrast the business models


As you compare and contrast the business models listed in this week's reading, my question for you is to state whether you agree or disagree and why?

A business model defines how an enterprise interacts with its environment to define a unique strategy, attract resources, build the capabilities to execute it, and create value for all stakeholders. A well-aligned model promotes innovation, productivity, and increasing returns. A poorly aligned business model can cause a business to spin out of control and destroy value.

The most common types of business models are:

Subscription model - Customers pay a periodic fee for access to a specified good, service, or experience. Examples of this model might include book clubs or cable providers.

Razor- and- blades model - Customers repeat purchases for a relatively small price, producing significant income for the company for many years. Examples of this model might include video games or ink cartridges.

Broker, advertising, and community - These companies bring buyers and sellers together to facilitate exchanges. Examples could include PayPal or eBay.

First mover - These companies reap the benefits of early entry into an emerging market. IKEA is an example.

Second mover - These companies improve on the business models of first movers, while avoiding the dead ends they encountered.

An example of a second mover would be Xbox, which was a latecomer to the video game market.

Reinventor - These companies provide an offering that is so attractive it not only captures a current market, it generates a new market.

Examples include the iPhone or iPod.

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Business Law and Ethics: Compare and contrast the business models
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