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What is a Business Model?

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A business model is a way of capturing value. It can be considered the root strategy of a business that includes the basics of creating valuable products and services and selling them for a profit. Business models are rare as it is common for thousands of unique businesses to have the same business model. For example, thousands of businesses are manufacturers, service providers, financial intermediaries, value added resellers, wholesalers or retailers.
Overview: Business Model
Type
Definition (1)
How a business captures value.
Definition (2)
The basic structure of a firm's strategy that explains how a firm creates value and makes a profit.
Related Concepts

Business Models

This is the complete list of articles we have written about business models.
Added Value
Aftermarket
Agent
Arbitrage
Auctioneering
Barter
Augmented Product
Bespoke
Bricks And Clicks
Business Markets
Business Products
Business Services
C2B
Club Goods
Coercive Monopoly
Collective Business
Concession
Complement Good
Consumer Business
Consumer Goods
Collectives
Consumer Services
Cottage Industry
Creative Services
Digital Business
C-to-C
Digital Services
Convenience Good
Ebusiness
FMCG
Gig Economy
Middleman Cutting
Global Business
Designer Label
Haute Couture
Digital Goods
Intermediary
Long Tail
Fast Fashion
Market Maker
Financial
Middleman
Niche
One Stop Shop
Productization
Recommerce
Retail
Managed Services
Services
Used Goods
Markets
White Label
Micropayments
Microtransactions
Modular Products
Original Equipment Manufacturer
Product-as-a-Service
Razor And Blades
Store Within A Store
Two Sided Market
Utility Computing
VAR
More ...
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Business Models

A list of common business models.

Bricks And Clicks

A retailing strategy that combines physical locations with a strong ecommerce presence.

Complementary Goods

A definition of complementary goods with several examples.

Collective Business System

An organization that represents businesses or professionals that have something in common.

Product vs Service

The business difference between products and services.

Business Model Examples

A few examples of common business models.

Scalable Business Model

A definition of scalable business model with several examples.

Two-sided Market

A definition of two-sided market with examples.

Business Strategy

An extensive list of business strategies.

Strategy

A reasonably comprehensive guide to strategy.

Baseline vs Benchmark

The difference between a baseline and a benchmark.

Strategy vs Tactics

A definition of strategy vs tactics with two examples.

Competitive Advantage

A few sources of competitive advantage for businesses.

Macro Environment

A list of macro environment components.

Competitive Advantage vs Distinctive Capability

The difference between competitive advantage and distinctive capability.

Do Nothing Strategy

An overview of a common business strategy.

Restructuring

A definition of restructuring with examples.
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