What is a business model? Simply put, how to achieve profitability!
In the current market competition, business models are becoming more and more important, especially new business models. In the context of the financial crisis, innovative business models have become a recognized response method.
The competition between companies is not between products, but between business models.
Among the four landing systems (business model, management model, production model, marketing model), the core is the networking of business models, that is, using the spirit of the Internet (equality, openness, collaboration, and sharing) to subvert and reconstruct the entire commercial value chain. Currently, it is mainly divided into five business models.
The first business model: tool community business model
With the development of the Internet, information exchange has become more and more convenient, and like-minded people are more likely to gather together and form communities. At the same time, the Internet will gather scattered demands scattered in various places on one platform, forming new common demands, forming scale, and solving the value of reunion.
Today, the Internet is maturing a new business model, which is a hybrid model of "tool community e-commerce/WeChat commerce". For example, WeChat was a social tool from the beginning. One is to filter a large number of target users through core functions such as its own tool attributes/social attributes/value content, add community functions such as friend praise, and then add business functions such as WeChat payment, selected products, movie tickets, and mobile phone bill recharge.
Why is this happening? To put it simply, the tool (WeChat) is like a sharp blade that can meet the painful needs of users and can be used as an entrance to traffic, but it cannot effectively precipitate fans. The community is the relationship attribute used to precipitate traffic; the business (applet) is a transaction attribute used to realize the value of traffic. The three look like three skins, but the logic of internal integration is integrated.
The second business model: cross-border business model
No matter which industry you are in, the competitors that pose the greatest threat to you must not be the competitors in the current industry, but those you cannot see outside the industry. ——Internet prophecy emperor Kevin Kelly
Ma Yun once said that if the bank does not change, then we will change the bank, so Yu'e Bao was born, and the scale of Yu'e Bao is close to 300 billion in half a year. Grandpa Sculptor not only made burdock, but also made skewers, afternoon tea, pancakes, and also entered nail art; Xiaomi made mobile phones, TVs, agriculture, cars, and smart homes, and immediately entered the smart hotel.
Why can the Internet disrupt traditional industries so quickly? Internet subversion essentially uses high efficiency to integrate low efficiency, redistribute the core elements of traditional industries, reconstruct production relations, and thereby improve overall system efficiency. Internet companies can improve efficiency and reduce costs by reducing intermediate links and reducing unnecessary losses in all channels and links that products need to pass through from production to users. Therefore, for Internet companies, as long as they seize the low-efficiency or high-profit links in the traditional industry value chain and use Internet tools and Internet thinking, they have the opportunity to successfully rebuild the business value chain.
In his internal speech, Ma Huateng said: "The crossover of the Internet into other fields is thinking about how to break the original profit distribution model of the traditional industrial chain, and kill the party that gets the most benefits before reshuffling. Anyway, this market is not of my interest. It doesn’t matter if everyone makes money.” It is based on this idea that new business and profit models and new companies were born. However, people in traditional industries are often unwilling or unwilling to give up the vested interests of monopoly or information asymmetry in the process of Internet transformation. Therefore, we tend to think more about how to improve organizational efficiency and service levels, and hope to obtain more profits, only using the Internet as a tool. Therefore, traditional enterprises are easily constrained by resources, processes and values in the process of transformation.
The third business model: free business model
The Internet industry has never fought a price war, it is free as soon as it comes up. When traditional enterprises transform to the Internet, they must deeply understand the nature of the business logic behind this "free". ——Lei Jun, Chairman of Xiaomi Technology
The "Internet" era is an era of "excess information" and "scarce attention". How to get "limited attention" from "unlimited information" has become the core proposition of the "Internet" era. Insufficient attention has caused many Internet entrepreneurs to try their best to compete for attention resources. The most important thing for Internet products is traffic, and traffic can build their own business models on this basis. Therefore, the Internet economy is based on attracting public attention, creating value, and then turning it into profit. Many Internet companies attract many users with free and good products, and then provide new products or services to different users, and then establish business models on this basis. Such as 360 security and QQ users. The common way for the Internet to subvert traditional enterprises is to make money for free in the fields used by traditional enterprises, thus completely taking away the customers of traditional enterprises, and then converting them into traffic, and then using the extended value chain or value-added services to achieve profit.
If there is a business model that can both dominate the future market and crush the current market, it is the free model. In "Free: The Future of Business", Chris Anderson, the spiritual leader of the information age, summarized a completely free business model based on core services, namely direct cross-subsidy, third-party markets, free, and pure free.
The fourth business model: o2o business model
In his speech at the Internet conference, Tencent CEO Ma Huateng mentioned that the geographic location information of the mobile Internet has brought a new opportunity, that is, o2o. QR codes are the key online and offline entry points, bringing the rich resources of the back end to the front end. O2o and QR codes are the basic functions that mobile developers should have.
O2o is the English abbreviation for online to offline. O2o in the narrow sense refers to the business model of online transactions and offline experience consumption, which mainly includes two scenarios: one is online to offline, where users purchase or book services online, and then go to offline merchants to enjoy services on site. Currently, there are many types of o2o; the other is offline to online, where users experience and select products through offline physical stores, and then purchase products through online and offline orders. It is based on the integration of online and offline technologies such as o205 and o2o, and is based on the integration of traditional online and offline technologies and the integration of online and offline technologies.
Yu Gang, co-chairman of Yihaodian, believes that the core value of o2o is to make full use of the advantages of online and offline channels to enable customers to achieve omni-channel shopping. Online value is convenience, anytime, anywhere, rich in variety, not limited by time, space and shelves. The value of offline products is that they can be seen, touched and immediately available. From this perspective, o2o should seamlessly connect the value and advantages of the two channels, so that customers feel that each channel has value.
The fifth business model: platform business model
The world of the Internet is boundless, and the market is national or even global. The core of the platform-based business model is to create a large enough platform, product diversification and diversification, and pay more attention to user experience and product closed-loop design.
Zhang Ruimin's understanding of platform-based enterprises is that enterprises can use Internet platforms to expand their scale. The reason is that one is that the platform is open, which can integrate various resources around the world; the other is that the platform can allow all users to participate in it, and realize zero distance between enterprises and users. In the Internet age, user needs change faster and more unpredictable. Relying on users' own resources, talents and abilities, it is difficult to quickly meet users' individual needs. This requires opening up the boundaries of enterprises and establishing a larger business ecological network to meet the individual needs of users. Gather resources at the fastest speed through the platform to meet the diverse and personalized needs of users. Therefore, the essence of the platform model is to create a win-win and mutually beneficial ecosystem.
However, for traditional enterprises, especially small and medium-sized enterprises, they must concentrate their superior resources, introduce smart products, combine them with the platform (WeChat applet platform), discover the uniqueness of their products or services, target precise target users, and discover their pain points. Designing final products based on user pain points and building core user groups around products are the basis for rapid brand building.
This article is reproduced from snow beast software
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