Top 3 Business Models To Watch Out For

Have you ever wondered how big giants like Google, Facebook, etc. make profits, deliver valuable solutions, and maintain their position in the market? What is the secret behind their financially solid cores? Well, it all revolves around a thriving business model! 

Simply put, a business model is a method of implementing a profitable business. Industries of all sizes must have a model, whether new or seasoned. Successful companies are constantly evolving to remain competitive. It requires a strong grasp of models and a thorough understanding of various aspects of business operations.

What is a business model?

The business model represents a structure of fundamental elements in a company or an organization. It covers a wide range of topics including processes, products, vision, mission, customers, strategies, policies, infrastructure, innovation, and many more. All these segments constitute a standard representation of the business. 

The main objective of such a model is to grow the business, provide value to potential customers, and remain in a long-term business by implementing innovative practices. This will involve various fields such as marketing, financial management, customization, sourcing, supply chain management (SCM), etc.

Common types of models

Many business models are available on the internet. A few are mentioned below with relevant examples:

1. Franchise: McDonald’s, Starbucks, Domino’s, etc.
2. Manufacturer: LG Electronics, Intel, etc.
3. Crowdsourcing: YouTube, Encyclopedia, Wikipedia, etc.
4. Freemium: LinkedIn, Skype, etc.
5. Subscription: Netflix, Hotstar, etc.

Top business representations

As we move forward, we will examine the most promising models that will thrive through the internet’s lifespan.

Facebook

Meta, formerly known as Facebook, is a giant monopoly. Interestingly, the $120,18 B company is structured around three customer segments: users, advertisers, and developers. Let us categorize the key factors included in the business model canvas. 

Activities

• Data retention and privacy.
• An acquisition like WhatsApp, Instagram, etc.
• Compliance with government regulations according to different countries.
• Building partnerships and expanding other operations including marketing, software development, etc.
• Maintenance, development, and sustainability of the platform.

Resources

• A network that provides infinite communication opportunities to various users.
• Technologies and efficient employees.
• The platform connects advertisers and users every day.

Partners

• Content contributors including content writers, audio and video creators, etc. This scope even covers movies, gaming, news, TV, and all other forms of content.
• Third-party allies such as Android, Visa, Apple, and many more.

USP (Unique selling point)

• Connectivity across the globe
• Smooth functioning

• Chatting, brainstorming, and all forms of healthy communication
• Business expansion
• Live telecast

Channels

• Internet
• Applications and websites

Revenue

• Advertisement revenue consists of Self campaign advertising and Engagement advertisements for brands.
• Payment revenue includes sales of digital products and apps, featured ads, as well as transaction fees. 
• In 2020, approximately 97.9 % of Facebook’s global revenue came through advertising, whereas only 2% was generated by payments and other fees.

Cost structure

• Marketing and advertising
• Research and development
• Customer service
• Content acquisition

Google

According to a statistics report, Google’s revenue amounted to $256.7 billion. Behind such enormous profits lies a strong model. Here is a picture of various apps and services offered by Google.

For a better understanding, we have tabulated important attributes with their corresponding elements.