business-model

Vocabulary Word

Definition

A 'business model' is a strategic design that portrays how a company generates income. It outlines the value proposition, key partners, resources, and processes involved in delivering goods or services.

Examples in Different Contexts

In retail, a company might adopt a subscription-based business model, offering products regularly to customers for a fixed fee. A CEO could state, 'Our subscription model ensures steady revenue and strengthens customer loyalty.'

Practice Scenarios

Creative

Scenario:

This artwork is phenomenal, but we need to think about the commercial aspects too. We need to make sure artists are compensated fairly, and we keep the gallery profitable.

Response:

Why don't we explore a commission-based business model? We could take a percentage from each artwork sold, which could allow the artists to have fair earnings and keep us sustainable.

Tech

Scenario:

Our app's users are growing, but we are yet to devise a solid monetization strategy. Any ideas on how we can generate revenue without annoying our users?

Response:

Perhaps we should consider a tiered business model, with a free basic version and a paid premium version. That way, people can choose what best fits their needs.