Business Models: Putting Strategy into Action

8 important questions on Business Models: Putting Strategy into Action

What is a Business Model?

It details the firm's competitive tactics and initiatives.
It stipulates how the firm conducts its business with its buyers, suppliers and partners.


--> explains how the firm intends to make money

What are Popular Business Models? (7)

1) Razor-razorblades
2) Subscription
3) Pay as you go
4) Freemium
5) Wholesale
6) Agency
7) Bundling

Popular Business Models: Razor-razorblades

The initial product is often sold at a loss or given a way for free in order to drive demand for complementary goods.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Popular Business Models: Subscription

Users pay for access to a product/service whether they use the product/service during the payment term or not.

Popular Business Models: Freemium

Provides the basic features of a product/service of charge but charges the user for premium services such as advanced features or add-ons.

Popular Business Models: Agency

The producer relies on an agent or retailer to sell the product at a predetermined percentage commission.

Popular Business Models: Bundling

Sells products/services for which demand is negatively correlated at a discount.

What is a 'Chun Rate'

The proportion of subscribers that leave especially before the end of the contractual term.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo