What is Business model?
A business model is a fundamental concept that describes how an organization creates, delivers, and monetizes value.
It is used in various contexts—economic, cultural, social—and focuses on how companies operate and generate profits.
Business models are part of corporate strategy, outlining key elements like organizational goals, processes, customer segments, revenue streams, and operational methods.
Historical development and modern business models
Business models have evolved over time.
For instance, the early “Bait and Hook” model offered basic products at low costs and generated profits through supplementary goods or services.
This model emerged in the early 20th century and was adopted by companies in industries like mobile phones, printers, and Adobe software.
In the 1970s, companies like FedEx and Toys “R” Us introduced new models, and by the 1990s, internet giants like Amazon and Netflix harnessed technological innovations to achieve global success.
Especially through the internet, businesses could reach large customer bases at low costs, and as outsourcing and globalization advanced, supply chain complexity and strategic sourcing became key factors.
Theoretical and empirical insights on modern business models
Business models are closely tied to organizational structure and storytelling, playing a crucial role in how entrepreneurs and executives identify opportunities and achieve sustainable growth.
Successful companies often share common traits, such as a strong narrative and design logic behind their business models.
Conversely, companies without consistent stories tend to fail.
In collaborations with other companies, it is essential that their business models complement each other.
Understanding each other’s models and identifying shared value drivers is key to building successful partnerships.
Classification and transformation of business models
In recent years, business models have shifted from “pipe” models to “platform” models.
Traditional pipe models were linear, with companies creating products or services and delivering them to customers.
In contrast, platform business models facilitate user interactions and co-create value.
In platform businesses, the “matchmaker” role, connecting providers and consumers, is crucial, and the success of platforms often hinges on data utilization.
Impact of platform business models
Platform business models are distinct from traditional ones, strongly influenced by digital transformation.
They foster interdependent relationships between consumers and producers, disrupting many industries.
Companies like Amazon, Uber, and Airbnb exemplify successful platform business models.
Application of business models in marketing strategies
To effectively leverage business models in marketing strategies, several key points must be considered:
Clarification of customer value proposition
Defining how the business model delivers value to customers is the foundation of a marketing strategy.
It requires identifying customer segments and tailoring delivery methods to meet their needs.
Optimization of revenue strategies
Revenue generation is at the core of a business model.
Subscription models, freemium models, and other modern platform business monetization methods are diverse.
Tying these to marketing campaigns and offering attractive propositions ensures long-term profitability.
Utilization of digital technology and data
In modern business models, digital technology is essential.
Marketing strategies also benefit from utilizing platforms to collect customer behavior data and offer targeted advertising or personalized experiences, strengthening a company’s competitive edge.
Continuous innovation
Business models are not static and must evolve.
In competitive markets, continuous innovation is necessary to provide new value to customers.
Marketing strategies should reflect this by promoting new products or services to customers.
Collaboration and partnerships
If a business model relies on partnerships, these collaborations can also be leveraged in marketing.
Incorporating common goals and values into marketing messages with partner companies ensures a consistent value proposition for customers and strengthens brand image.
Conclusion
Business models are vital elements for a company’s success.
Effective design and application can create sustainable competitive advantages.
Especially in the modern digital society, platform business models are rapidly gaining prominence, making marketing strategies centered on these models increasingly important.
Meeting customer needs with clear value propositions, data-driven personalization, and continuous innovation will be key to future marketing success.
This article uses material from the Wikipedia article “Business model” which is released under the Creative Commons Attribution-Share-Alike License 4.0. Additionally, the texts and images were generated using ChatGPT.