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Business Models

This document discusses business models and provides examples. It begins by defining a business model as a company's plan for generating profit by delivering value to customers. It then notes that business models are important for startups to attract investment and guide the company, and for established businesses to adapt over time. The document outlines 8 common business model types and introduces the business model triangle of value proposition, revenue model, and operating model. It uses Uber as a case study, explaining its business model triangle of riders, drivers, and Uber itself. The document concludes by comparing Uber to traditional taxis and how taxis can adapt.

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lopezmayne45
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49 views15 pages

Business Models

This document discusses business models and provides examples. It begins by defining a business model as a company's plan for generating profit by delivering value to customers. It then notes that business models are important for startups to attract investment and guide the company, and for established businesses to adapt over time. The document outlines 8 common business model types and introduces the business model triangle of value proposition, revenue model, and operating model. It uses Uber as a case study, explaining its business model triangle of riders, drivers, and Uber itself. The document concludes by comparing Uber to traditional taxis and how taxis can adapt.

Uploaded by

lopezmayne45
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Research and

Market Strategy

BUSINESS
MODELS
Isabella Moncayo, Mayné Lopez,
WHAT IS A
BUSINESS MODEL?
A company's plan for making a profit.
A business model is a fundamental strategy
employed by a company to generate profit by
creating and delivering value to its customers. It
outlines the specific products or services a
business intends to offer, defines the target
market it aims to serve, and estimates associated
expenses.
BUSINESS MODELS
Business models are crucial for both new and established
enterprises.
For startups, they help attract investment, recruit talent,
and guide management and staff.
Established businesses should periodically update their
business models to adapt to evolving trends and
challenges in the market.

Business models also serve as a tool for investors to assess


potential opportunities and enable employees to
understand the future direction of a company they aspire to
be a part of.
8 TYPES OF BUSINESS MODELS

1 PRODUCT: Create and sell tangible items

2 SERVICE: Offer specialized skills for a fee

3 SHARED ASSETS: Create and sell tangible items

4 SUBSCRIPTION: Charge recurring fees for access

5 LEASE/RENTAL: Rent durable assets

6 INSURANCE: Transfer risk through premiums

7 RESELLING: Buy and sell items at a markup

8 AGENCY/PROMOTION: Market assets for others


BUSINESS MODEL TRIANGLE

Value proposition Revenue model Operating model

The operating model involves


The value proposition is what a The revenue model defines
the internal processes that
business offers to customers, how a business makes money
enable delivering the value
explaining how its products or from its value proposition, proposition and earning
services meet their needs or detailing pricing, revenue revenue. It covers cost
solve problems. It's vital for streams, and sales channels. structure, key activities,
attracting and retaining It's crucial for financial resources, and partnerships,
customers, forming the basis sustainability and growth, ensuring efficient operations to
for customer loyalty and answering how the business execute the value proposition
acquisition. earns from its offerings. and revenue model.

The success of a business depends on the alignment and coherence of these three components.
INTERCONNECTION
The value proposition defines what the business offers and why
customers should choose it. It is the central element of the
model.

The revenue model shows how the business captures value from
its value proposition. It is aligned with the customer segment and
pricing strategy.

The operating model describes the internal mechanisms that


enable the delivery of the value proposition and the realization of
revenue. It ensures that the business can operate efficiently and
effectively.
BUSINESS MODEL
TRIANGLE: UBER
The "Uber Business Model Triangle," which
is composed of three essential elements—
riders, drivers, and Uber itself—can be
used to understand the many aspects of
Uber's business strategy. Every element of
Uber's business model is essential.
RIDERS OF UBER
Value Proposition. Customers that use the Uber app to
request trips are known as riders. They are an essential
component of Uber's operations and constitute one half of
the triangle. The software allows users to pay for their
journeys, follow their drivers, and request rides.
DRIVERS OF UBER
Operating model. The independent contractors that offer
riders transportation services are known as drivers. They
utilize their own cars and download the Uber app to become
employees. Drivers take requests for rides, pick up
passengers, and finish the excursions. They receive payment
for their services from the rider as a proportion of the fee,
with Uber deducting a commission.
UBER
Revenue model. Uber is the platform that links drivers and
passengers, and it occupies the middle of the triangle. It
offers the smartphone app that drivers use to accept and
finish journeys, as well as the app that passengers use to
request rides. Uber is also in charge of customer service,
payment processing, and other operational facets of the
ride-hailing business. For using its platform, it charges
drivers a commission or service fee. Riders may also be
charged extra for certain services.
HOW TRIANGLE WORKS
To find a ride from a certain place to their destination, riders
utilize the Uber app. The ride request is received by nearby
drivers, who have the option to accept or reject it. A driver
will pick up the rider and finish the trip if they agree to the
request. After deducting its commission, Uber manages the
rider's payment and gives the driver their portion. Uber also
offers safety precautions, customer service, and ongoing
software updates to make the experience better overall for
drivers and passengers.
BUSINESS MODEL
This triangular model forms the basis of Uber's ride-hailing
service, allowing it to create a marketplace that connects
riders in need of transportation with drivers willing to
provide it. Uber's revenue is primarily generated from the
commissions it charges drivers and from additional fees it
may charge riders for certain services or during peak demand
periods.
TAXI VS UBER
To compete with Uber, traditional taxi companies can adapt their
business models by focusing on specific niches, such as airport,
corporate, or medical transportation, or a specific geographic area.
Investing in a mobile app is also as convenient and user-friendly as
Uber's and essential to provide a seamless experience for riders,
allowing them to request rides, track them in real-time, and pay
directly through the app.

By adapting to the new realities of the transportation industry,


traditional taxi companies can compete with Uber and other ride-
hailing companies.
THANK YOU

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