Business Management and Strategies - Essay Example

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Business Management and Strategies

Some models mean the same thing but are given different names by their creators. With the evolution of the internet, many new models have emerged. At the same time, some do not stay long and have gone. Rappa (no date) identifies nine generic forms of business models, including the brokerage model, advertising model, infomediary model, merchant model, manufacturer model, affiliate model, community model, subscription model, and utility model. Timmers (1998) classifies business models by positioning them along the two dimensions of the degree of innovation and functional integration. In Novak and Hoffman (2001)'s customer-centric framework, for any business model to be successful, it must integrate customer models, value models, and revenue models. ...Show more


Rappa (no date) defines a business model as "the method of doing business by which a company can sustain itself - that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain." Timmers (1998) adopts a broader perspective to include other stakeholders and defines a business model as "an architecture for the product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenues." Novak and Hoffman (2001), without departing from the common elements of revenue…
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