In this article, we give you information about business models. We examine the business models, which are the determinants of the visions of businesses, and discuss the inspiring methods of successful companies in order to give more solid examples.
What are Business Plans?
Business plans are concepts that describe how an enterprise creates and delivers value. In other words, it is the profit making plan of a business. It is an element that serves to define the products and services that the business will offer along with the anticipated expenses and the targeted market that comes with it. Therefore, the question “What is your business model?” includes a number of other questions:
- How will you generate income?
- Who are your target audience?
- How do you reach people and keep your customers?
- How is your cost structure?
- What is your profit margin?
Examples of Business Plans
Each company has its own unique business models to meet its own needs. The concept of a business model is a concept that serves needs and varies according to purpose, rather than absolute truths. In order to make this concept more solid, in this part of our article, are you ready to examine some of the companies that adopt innovative business models by keeping up with the changing world as soon as possible and these business plan examples that make them successful?
1- The Meeting of Supplier and Customer Model – Airbnb
The main purpose of this business model can be summarized as gathering demand and supply under the same roof. Undoubtedly, one of its most successful practitioners has been Airbnb. Although millions of homes can be rented through Airbnb today, Airbnb does not even have a single room of its own. This is a very advantageous application that provides profit by establishing a bond between the supplier and the customer without incurring costs such as stock and market place.
2- The “Tailormade” Model – Coca Cola
In this model, the focus is the requests of the customers. It is aimed to attract attention and increase sales by providing more personal services in line with the demands of the customers. As many of us know, Coca Cola is among the organizations that use this method. It has achieved serious sales figures by writing information that makes its customers feel special, such as names and cities on the bottles.
3- The “On Demand” Model – Uber
This method, which is among the most popular business models of recent times, works on responding to instant demands of customers. Uber enterprise, which provides the opportunity to access a taxi whenever you want, is one of the main examples of companies using this model. It is a successful method as it responds quickly to the needs of customers and is easy to reach with smartphones.
4- The “Unassembled Sales” Model -Ikea
The aspect that distinguishes the world-famous furniture and home products company Ikea from its competitors is that it leaves the assembly of the products sold to its customers. Thanks to this method, which is one of the most effective among business model examples, Ikea succeeds in saving labor and cost. On the other hand, customers who put effort into the product and install it themselves establish a special bond with the products.
5- The “Monthly Subscription” Model – Netflix
Among the business model examples, the monthly subscription model, which is one of the popular methods of recent times, is a model that saves people from the hassle of paying bills every month. Instead of paying bills every month by making an effort again, nowadays people prefer to subscribe once and not think about it again. With this method, the company determines the number of guaranteed sales. Thus, profit is achieved by maintaining an optimal balance of benefits between the company and the customer.
Upgrading Business Models
Although the business model examples we mentioned in the previous part of our article are successful in the period in which they are used, it should not be thought that they should always remain constant. Business models are dynamic structures and should be reviewed according to changing conditions and updated as needed.
It is very valuable to make the right updates at the right time to ensure continued success. In order to better understand this issue, we would like to give an example through the business models of two rival airline companies.
A of the major airline companies, Company A, has adopted the “central flight network” system, where all flights are routed only over major airports for many years. With this business model, it has succeeded in making huge profits.
Later, a new competitor model emerged. Using the competitor model, Company B operated flights between small airports at much lower costs. In this way, it managed to increase the number of customers by reducing ticket prices with the profits it made from labor costs.
Since the new model managed to attract a lot of customers, after a while, Company A had to go to big discounts just to fill its seats and suffered a loss. In other words, the “central flight network” system has lost its functionality and needs updating. At this point, change is inevitable.
As you can see, creating a business model requires extensive and continuous work. Firms with a dynamic business model that succeed in catching up with the changing world become the winners of the race to gain value.