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Contemporary businesses are definitely different from those we knew only a few years ago. Today you don’t need a taxi fleet to provide transport services. You also don’t have to open a hotel to welcome customers under your roof. Various companies use this type of innovative business models, including Uber and Airbnb, as you guessed. A similar situation occurs in the field of sales. Today, if you want to sell online, you don’t even need to have your own goods in stock, all you have to do is use the dropshipping method, such as the Alibaba website.
These types of business models were created to facilitate the conduct of many activities. They provide a variety of values, hence a lot of people use their solutions. Discover 10 inspiring business models and see if one of them is right for you!
Have you heard of Airbnb? If you travel a lot, you have certainly come across its services. This is a very popular way to find accommodation, especially abroad. Airbnb is a website that allows private individuals to list, search and rent accommodation – single rooms, apartments, houses and other options, upon payment of a handling fee.
What is unusual about this model? That the company itself, as the largest accommodation provider in the world, doesn’t have a single room! Airbnb does not rent an apartment from the host. It is only an intermediary between its and the client. It provides demand and, in the other way, guarantees supply. Therefore, the business model of this enterprise is based on the economy of shares and the strong belief that owners of houses or apartments will be willing to make money by renting a free space to strangers looking for accommodation. In practice, this assumption is very accurate!
The Alibaba Group is the largest retail company in the world. Through its platform you gain access to a variety of goods offered by sellers from many countries, often tens of thousands of kilometers away from you.
What is the phenomenon of the Alibaba Group business model? This company does not have any of its own goods. It does not purchase their articles from sellers, and like Airbnb, it is only an intermediary between the seller and the buyer. So their goal is to connect sellers and customers. Currently, the company pays the greatest attention to sellers from China. The value of the Alibaba website itself lies in the software interface, not in the products themselves offered on the platform.
Hilti is an international company located in Liechtenstein. What does it do? Develops, produces and sells products for the construction, maintenance and mining industries. Professional end users are their main clients.
The secret of the Hilti business model is that their activity has disturbed the current market for this type of goods. Moving from sales to a business model based on rental transactions. The company owners realized that their customers do not need to have a reliable tool, but only the right tool at the right time! Hilti therefore offers tool maintenance, and its customers rent them when they need them. As a result, customers do not need to have in their warehouse all the tools that may be useful to them, but only those that they currently desire.
We all know the Swedish brand IKEA, which has made its home in our country for good. This is a store that often creates trends and offers many products that we want to have in our interior. Not only accessories and accessories, but above all furniture and other elements of home, garden or workplace equipment. All offered products are prepared for their own assembly.
What is the success of the IKEA business model? It includes global sourcing of components from which articles are created. The company acquires high quality products with a refined European design at a low cost. It uses factories located in various countries, including Poland. What’s more, in addition to interior design products, it also offers the possibility of using a cafe, restaurant and day care center. These are additional amenities for customers who love this brand.
Tesla Motors, Inc. is an American automotive and energy storage company. Designs, manufactures and then sells electric cars, electric vehicle propulsion components and battery products. The company’s goal is to accelerate the arrival of sustainable transport by introducing attractive electric cars to the mass market, available to all customers.
The business model is based on the fact that Tesla offers a wide range of high-quality services, making the use of an electric car simple and uncomplicated. In this way, it creates positive experiences for its clients who are willing to recommend its products to others. Moreover, to increase its further growth, Tesla invests heavily in its infrastructure.
As you probably know perfectly well, Wikipedia is a free online encyclopedia that anyone can use. It helps to improve common knowledge, and also allows users to edit almost every article available in it. This makes it the largest and most popular overall reference work on the web. It is included in the top ten most popular websites.
The strength of the Wikipedia business model is that the company can motivate a huge community to engage in a project without offering any financial benefits. Thanks to the contribution of this online community, Wikipedia itself provides high quality articles and access to free, reliable knowledge.
The Zara company is a Spanish seller of fashion clothing and accessories. Is one of the largest international companies in the world. Products bearing the Zara logo are associated with originality and prestige, which, however, is available to most people.
The great advantage of Zara’s business model is that the company manufactures its products where it sells them. So it uses a very strict supply chain – from design to final production. Thanks to this, the company can adapt to new trends and ideas in just two weeks! Short delivery times for new products and quick replenishment of sold out goods are therefore possible. This very strongly raises the company’s listings in the eyes of its customers.
Local Motors is another American company in our ranking. It manufactures motor vehicles. It focuses on small-scale production of open source motor vehicles using many micro factories.
How does Local Motors operate? The company identifies new and forward-looking problems in many industries and works out a solution for them. It happens much faster and at lower development costs than in the case of traditional companies. This is possible thanks to the large online community, which brings many benefits while developing solutions.
Easy Bank is the second largest direct bank in Austria. Therefore, it directs its services to a wide and diverse audience. How does it work?
The company’s financial product range is very rich. They are offered through online banking, and most importantly – without the bank’s branch network. Thanks to this infrastructure costs are kept to a minimum. Therefore, the bank can offer services without transaction and accounting fees, which additionally attracts customers and increases the company’s profits!
Red Bulletin is a prestigious lifestyle magazine. It contains extremely interesting sporting, cultural, music, nightlife and entrepreneurship events. The magazine focuses primarily on developing the Red Bull brand around the world and expanding its audience.
How does the warehouse work? Red Bulletin generates revenue thanks to subscription fees, even before warehouse production costs occur. In addition, the magazine creates additional value, they advertise Red Bull activities in various fields. This translates into building a positive brand image.
If you are an entrepreneur, you are certainly aware of the needs of your clients and focus on solving their problems. Of course, the key to doing this is knowing your customers well. Without it, you can’t build and run a successful business. However, if you know to whom you direct your communication, you are on the right track. The right business model will definitely help you prioritize and even predict if you will succeed. So remember to think in an unconventional way when creating your own model. Do not copy third-party solutions, but take inspiration from them and try to create your own ideas from them. Do you think that the subscription model will work in your business? Analyze it and try it out! Remember that brilliant ideas often don’t appear right away, and before you come up with the best solution, you can test several other possibilities!
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