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

A tech startup might follow a freemium business model, offering basic services for free while charging for premium features. A product manager might explain, 'Our freemium model attracts users and introduces them to our advanced features, boosting our revenue.'

Practice Scenarios

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.

Academics

Scenario:

Reading about different enterprises for my research, I've noticed how innovative companies are with their income generation strategies. It's quite fascinating how they adapt with market shifts.

Response:

Absolutely. The study of diverse business models gives us insight into how companies strategically adapt to market dynamics for survival and growth.