What Is a Free Business Model?

The business model analysis method is one of the most important analysis methods in the business society. Mastering a good business model analysis method has the most direct meaning to the pricing of business assets, business negotiations, and customer service. In general, the business model of a company must be smooth and empirical. In the practical application of business model analysis method, it is often almost instantaneous in the mind. Ask yourself why, why, and whether it is readily available; investigating every business detail is the only way to analyze business models.

Business model analysis

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Analysis of Taxi Business Model

The concept of Business Model, which has been popular since the late 1990s, has always been hung up on the lips of entrepreneurs and venture capitalists. Needless to say, a company has a good business model, and half of its success is guaranteed. For modern enterprises in a rapidly changing business environment, it is important to rely on the introduction of new business models to maintain continuous change and innovation capabilities.

Economists define the business model as a mouthpiece: it is a conceptual tool that contains a series of elements and their relationships to clarify the business logic of a particular entity. It describes the value that the company can provide to customers, as well as the elements of the company's internal structure, partner network, and Relationship Capital to realize (create, sell, and deliver) this value and generate sustainable profitable income. In short, companies are required to do their best in terms of value proposition, consumer target groups, distribution channels, and core capabilities.

In layman's terms, the business model is what means or methods the company uses to make money. This annoying problem has always plagued entrepreneurs from all walks of life.

Especially in the context of the global financial crisis, many companies are actively exploring new business models in order to protect their place of survival. Beijing Deshifeng Clothing Tie Co., Ltd. (hereinafter referred to as Deshifeng Company) took the lead in making a beneficial attempt to launch a set of business models with Chinese characteristics, which not only stabilized one acre of three points in the industry, but also seized In order to seize the opportunity in the crisis-an opportunity, seize the market in front of other companies, expand channels, and enhance the brand, step by step, and dig for the image of "DESFONE" the first brand of professional Chinese tie operator.

"DESFONE" ambition is located in Beijing's Asian Games Village Theo Center, Taxi Co., Ltd. is a professional clothing company that integrates necktie design, production and sales. Taxi regards "building the first brand of Chinese tie" as the company's vision. At present, the company's specific operations are: unify the product brand, company brand and channel store name brand into the "DESFONE" brand, that is to say, Taxi The company's channel terminals uniformly promote the "DESFONE" channel store name brand. Under the name of this unified terminal image store, the brand structure, category structure, and variety structure of each terminal store are determined according to factors such as regional economic level, mall positioning, mall location, and counter area of the mall to meet the requirements of rapid channel expansion.

In China's tie industry, Texaco took the lead in launching this business model. No matter from brand or channel expansion, it is at the forefront of other companies. Starting from the industry development status, the company's overall strategy, and the company's business portfolio analysis, it proposes to take long-term brand training and rapid expansion of channels as basic measures to achieve the company's strategic goals, and analyze the advanced and superiority of this business model. Sex.

Growing necktie From the overall industry perspective, China's necktie industry is in the development and growth stage. The production equipment of China's tie enterprises has reached the international leading level, and the product design has also transformed from the original take-home approach to self-developed design. As the market capacity continues to grow, the industry scale continues to expand, but domestic tie enterprises generally lack domestic, International well-known brands have low added value.

At the same time, tie companies are facing a very complicated domestic tie market. There are large differences in sales channels, demand categories, price elasticity, and product quality. There are three main sales channels for domestic tie companies: department stores, supermarkets, and wholesale markets. The channels for floor shops have not yet been formed. The demand categories are generally based on personal consumption, group purchase and customization by enterprises, institutions, and institutions. Compared with terminal individual customers, the price elasticity of high-end consumption is not large, and the price elasticity of low- and medium-end consumption is relatively large. It is at the stage of price competition, and real brand competition has not yet formed. For distributors, due to the serious homogeneity of products, price competition is also fierce.

In this market environment, domestic tie brands have not yet formed enough influence to compete with foreign brands that have entered the domestic high-end tie market. At the same time, many companies either "borrow a boat to the sea", "hang a sheep's head to sell dog meat", or "repair the plank road and secretly store their positions", lacking a down-to-earth mentality of being a brand. In this way, due to the international trade environment and overproduction in traditional industries, a group of traditional operating companies will inevitably be eliminated in the next 5-8 years. "In this era of great and magnificent reshuffle, this is a historical opportunity to embrace cold resistance, expand and merge, and make breakthrough development." Operability and rapid expansion of channels are the key links to seize this opportunity.

The magical concentric polyhedralization has always been the business philosophy promoted by Texaco: concentric polyhedralization with a tie as the core. Bigger and stronger tie products are the foundation of this business philosophy. On this basis, the diversification of brand structure, category structure and price system is continuously extended. The ultimate goal is to expand the market and achieve breakthrough improvement in terminal sales performance.

From the perspective of brand structure, in addition to the "DESFONE" brand, the company also represents seven world-class top tie brands such as Fendi, Givenchy, Mar Zorro, and Montana, occupying a large share of the domestic high-end tie market. In 1999, the company launched the Italian Nino Ferre brand tie apparel series, entered the domestic high-end tie apparel market under the Nino Ferre brand, and competed with the major international brand chambers. In addition, Texon brand products focus on the mid-range consumer market with stable income groups. The Deanchi brand is mainly targeted at mass and fashion consumers. The brand of Taxi Group has a pyramid structure according to the market positioning combination. Such a rich brand structure not only meets the different needs of different types of consumer groups in the Chinese market, but also lays the foundation for Taxonomy to occupy different markets.

From the perspective of category structure, tie products are still the company's core products. Prior to 2008, the proportion of necktie products had been above 60%. From 2009, the company will gradually adjust the proportion of each product category. Tie products adjusted to 50% are still core products, which is beyond doubt; other accessories such as scarves and leather goods rose to 20% while shirts and suits made up 30%. Taken as a whole, jewelry with a core as the core accounted for 70% of the advantage, which is also a direction for the future development of Texaco-bigger and stronger men's personal accessories mainly based on tie, such as belts, wallets, purses , Tie clips, cufflinks and other accessories, becoming the leading brand of high-end jewelry.

From the perspective of the price system, the pyramid-shaped brand structure, foreign brands are at the top of the pyramid, is the highest-end price positioning, Nino Ferre brand is a mid-to-high-end price positioning, Texaco brand is a mid-range price positioning, Dianqi brand It is a popular price positioning that comprehensively covers consumer groups of different classes.

How to integrate such a large and complicated concentric and diversified management system and turn it into an advantageous force to promote the development of the company? In 2008, Taxi Company began to implement a set of the most essential, most effective and most aggressive business model. Grab an industry advantage in front of other companies.

The expansion of the unified channel is based on a concentric and diversified operating system. Texaco has begun to abandon complexity and simplicity. As mentioned in the opening paragraph, the product brand, company brand, and channel store brand are unified under the name "DESFONE" and implemented in sales. It was decided that its channel terminal store name "DESFONE" would bloom everywhere. In different "DESFONE" tie and apparel franchise stores, according to different regions, different shopping malls, different locations of shopping mall counters, and other factors, multi-level brand structure, category structure, variety structure can be organically organized. Permutations and combinations to adapt to China's most complex and diverse channel structure in the world and achieve unlimited channel expansion.

From 2009, Texaco will promote the strategy of coexistence of multiple channels. Top shopping malls, shopping malls, traditional department stores, supermarkets, hypermarkets, and even monopoly stores, high-end hotels, airports, and gift channels can see "DESFONE" "The shadow of the tie-apparel specialty store.

For example, according to the multi-level brand structure, brand ties such as Fendi, Givenchy and Nino Ferre will appear in "DESFONE" stores in top shopping malls, while Deanie brand ties may appear more In supermarkets and hypermarkets. In this way, through the combination of different levels of the brand, the DESFONE tie and apparel specialty store can occupy different channels to the greatest extent.

In addition, from the perspective of the diversity of the category structure, this arrangement and combination is more free.

Such a free combination of category structure determines that the form of the "DESFONE" terminal store is ever-changing and diverse, and can be large or small. For example, if the tie is monopoly, only the jewelry counter in the mall is sufficient, because the current style and design capabilities of taxi tie have the strength of the first brand in China; if there is a main counter in the mall suitable for the location area, taxi Feng company also has the ability to display all categories of various brands (such as: tie, leather accessories, shirts, suits, etc.). To put it another way, no matter what channel is used, Texaco can find the best DESFONE terminal store form that matches it. This kind of channel expansion is almost infinite.

Figure 2 is the final form of the channel terminal store we describeDESFONE Living Hall, which is also the direction of the company's efforts, namely to become the first brand of professional Chinese tie operators, wherever there is a man who wants to buy a tie, or other Men's jewelry must first think of going to the "DESFONE" store, because there are a variety of brands and products at different price points for them to choose from, which has virtually changed their life philosophy and consumption habits.

They believe that for companies to survive and develop, market expansion has become inevitable, and an effective method for market expansion is channel expansion. This business model promoted by Taxi can expand channels infinitely and is suitable for any channel in China. This is the core competitiveness of this model.

This core business model promoted by GAP in China's tie industry has actually had many successful examples abroad. GAP is a typical example of this. Of course, there are still some differences between the two. GAP's positioning is relatively narrow, advocating a casual lifestyle or lifestyle, and the GAP series of brands are owned by GAP companies. The "DESFONE" brand brings together foreign agency brands, acquired designer brands, private labels, etc., with a richer brand hierarchy and a more diverse and free product portfolio.

However, Taxi is not a simple copy of the GAP business model, but an innovation based on China's national conditions. The advantages of this business model are very obvious. Not only is it suitable for the complex and diverse structure of China's channels, but it also unifies the dispersed brands and the market positioning role of Dexon's market strategy products under the name "DESFONE", which is more competitive and Can spread the "DESFONE" brand to the maximum.

Winning in the future, it is not difficult to see from the chart that this business model promoted by Taxi is inseparable from two major elements, one is the brand and the other is the channel. In Texaco's offensive strategy of channel expansion, the brand played a key role in the charge. Please see the combined matrix chart of the various brands of Texaco.

According to the above brand portfolio matrix chart, in order to make the product variety and its structure suitable for the changes in market demand, Taxi Co. plans four levels of brands to the four quadrants in the figure. According to the market growth rate and the level of the relevant market share, determine the allocation of input resources. They believe that such a brand positioning and brand distribution will not only help Defeng build an industry leader, but also help brand incubation and brand collaboration, and ultimately increase sales. The terminal manifestation is the DESFONE tie apparel franchise store. In realizing this business model, brands and channels complement each other and go hand in hand.

Phoenix Geographic's well-known host Xu Gehui once said during the positioning of the "Celebrities Face to Face" program: "It is celebrities who enter the celebrity face to face program." Similarly, the purpose of this business model promoted by Texaco Company is to create "the brands that enter the DESFONE store are all famous brands." Texaco has positioned its market strategic role as the leader of the tie market, and the dream of creating the first brand of "DESFONE" Chinese professional tie operator will become a reality in the near future.