What Are the Different Types of Business Discourse?

A business model is a theoretical tool that contains a large number of business elements and their relationships, and can describe the business model of a particular company. It can show the value of a company in one or more of the following: customers, company structure, and customer network for the purpose of making and selling profit, for producing, selling, delivering value and affiliating capital. Business models describe a wide range of formal or informal models that are used by companies to describe different aspects of business behavior, such as operational processes, organizational structures, and financial forecasts.

Business model

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Osterwalder, Pigneur and Tucci (2005)

Many people give different definitions of business models (Chesbrough and Rosenbloom 2000; Hamel 2000; Linder and Cantrell 2000; Petrovic, Kittl et al .; Weill and Vitale 2001; Gordijn 2002; Afuah and Tucci 2003; Osterwalder 2004; Fetscherin & Knolmayer 2005). These definitions are more or less the same and different. Given the similarities of a large number of different models, Osterwalder proposed a reference model fused with different definitions Osterwalder (2004). Osterwalder believes that the business model consists of 9 different modules. This is how he uses a business model to describe a company's business operations: Image: Business model components.png

According to the above understanding, business models can be divided into two categories

(1)

The so-called business model refers to a business operation organization designed by the company according to its strategic resources, combining market conditions and the interests of partners. This business operation organization is generally designed to suppliers, manufacturers, and distributors , Comprehensive benefits such as terminal business and consumers, therefore, the business model is a strategic idea for leading enterprises under a multi-win value system. The business model is different from a single channel strategy. The business model is more of an organizational structure design based on a profit structure-oriented approach than a simple channel distribution strategy.

Manufacturers, brands, distributors, and terminal vendors all have their own unique business models. This is mainly aimed at fast-moving consumer goods and durable consumer goods manufacturing enterprises, so the business model mentioned is mainly the business model of manufacturers (including brand owners). At present, manufacturers' business models mainly have the following six forms.

First, the direct supply business model. It is mainly used in some large international companies with a relatively small market radius, relatively low product prices, or clear processes. The direct-supply business model requires manufacturers to have strong execution power, good cash flow, a stable market foundation platform, and fast market product flow. Due to the great depth of China's market strategy, the market characteristics are very different, the channel system is complex, and the market is less standardized. It is unimaginable to choose a direct supply business model in the national market. Also began to give up such a business model of direct supply. However, some industries and industries with relatively rich profits will still choose the direct supply business model, such as the liquor industry, many companies have chosen the direct supply business model. In order to intensive cultivation of the market, Yunfeng Liquor has established sales companies throughout the country to directly control market terminals. Guangzhou Yunfeng Liquor, Xi'an Yunfeng Liquor, Hefei Yunfeng Liquor, Hubei Yunfeng Liquor and other companies are locally The market has certain strength and good foundation; for example, many OTC products will also choose to supply the market directly.

Second, the general agent system business model. This business model is widely used by the vast number of SMEs in China. As the majority of small and medium-sized enterprises in China face two core difficulties in the development process, one is that the team's execution is relatively poor. It is difficult for them to build a large execution team in a short period of time, and choosing a dealer as the general agent can Eliminates many local market implementation difficulties; the second is the difficulty of capital strength. Chinese SMEs generally have weak capital strength and choose a general agent system business model. They can certainly become a part of the general agent's funds. What's more, In this way, they can complete the initial accumulation of original funds in this way and achieve rapid development of the enterprise.

Third, the joint marketing business model. With the large number of small and medium-sized enterprises choosing to adopt the general agent business model, the good dealers in the market have become a scarce strategic resource. Many dealers have developed a serious alertness to the investment of fish and fish. In this market situation, many In order to reduce business risks, more powerful distributors have chosen to cooperate with enterprises in a bundled manner, that is, manufacturers and distributors separately invest to set up joint sales agencies. This joint sales agency can control the dealer's market risk and can also guarantee Manufacturers always have a good sales platform. This way of joint sales has been welcomed by many manufacturers with ideals and long-term development plans. For example, Wahaha, a leading company in the food industry, has adopted this joint sales business model; Gree Air Conditioner, an air conditioning industry giant, has also chosen to set up joint ventures with regional agents to jointly operate the market and achieved good market performance.

Fourth, the warehouse business model. The warehouse business model is also the business model of choice for many consumer goods companies. Many strong brands based on the fact that the cost of channel grading is very good, and the competitiveness of manufacturers has fallen sharply, they have chosen a warehouse-based business model to build their core competitiveness through price strategies. For example, in the 1990s, Sichuan Changhong TV was in the midst of the Chinese mainland market. In order to reduce the cost of channel systems and improve the price competitiveness of enterprises in the market, Changhong Group chose a warehouse-based business model, where the company delivers products directly to consumers.

The biggest difference between the warehouse-based business model and direct supply is that direct supply belongs to enterprises that do not own direct stores and complete product sales through third-party platforms. Enterprises directly supply goods to third-party sales platforms. The warehousing business model is that the enterprise has its own sales platform and completes the market distribution function through its own sales platform.

Fifth, monopoly business model. With the scarcity of channel and terminal resources in the Chinese market, more and more Chinese consumer goods companies are choosing monopoly business models. For example, the TCL Xingfu Village monopoly system, Wuliangye's national plan of 2,000 stores, Mengniu Dairy's Mengniu franchise affiliate plan, and the milk specialty store and milk pool in Yunnan dairy. Selecting a store business model requires any one of three resources or all three features. One is the brand. The companies that choose the monopoly business model basically have a good brand foundation, consumers have more voluntary consumption, and the market awareness is more mature; the second is a more complete product line. In order to maintain a stable store with a stable profit, the product structure of the store should be more reasonable. Therefore, the company choosing the channel must have a rich product line; the third is consumer behavior habits. It must be seen that in the vast rural market, it may be difficult for our monopoly model to promote market sales. Therefore, the monopoly business model requires a mature market environment.

The monopoly business model is completely different from the warehouse business model. The warehouse business model is based on price strategy as the core of the business model, while the monopoly business model is based on image and high-end.

Sixth, the composite business model. Due to the extremely complicated market environment in China, many FMCG companies in China have also chosen multiple forms of marketing strategies. The hybrid business model is a strategic choice that has been made based on the stage of enterprise development. However, it is important to note that, in general, no matter how complicated the company and the market, there should be a mainstream business model, and the business model cannot be used as an excuse to change things, making the marketing system on the business model. There was a major swing. Moreover, we should understand that once we choose a business model, we often need to make corresponding adjustments in organizational construction, human resources allocation, logistics systems, and marketing strategies. Otherwise, we cannot think that this company has established its business. Mature business model.

Business model pictures (3 photos)