Businessmodels can be described as work of art that includes hypotheses andassumption of business. They play a crucial role in all successfulorganizations, as they provide answers on the economic value ofservices, products and technology to the organization. They alsohighlight the position of business in the value chain and whatconsumers get from it. Understanding of these concepts allowsorganizations to find ways through which they can get revenue.Successfully implemented business models usually lead organizationsto have high commercial returns for and also provides organizationwith room for innovation (Morris et al., 2015). Organizations areencouraged to adopt a flexible strategy when dealing with mattersconcerning business models.
Thereexist various models constructed depending on the goals of anorganization. A few examples of this business models includeadvertising model, franchise model auction model among others. Thesemodels are somehow interconnected to two main types of businessmodels that are currently used, that is product model and marketingmodel. The product model is also known as the bill of material. It isa structure of hierarchal breakdown of the product. In the case ofmanufacturers, the bill of material is comprised of important productrecord information. The product model discusses the processes,material and all other activities that pertain to productconstruction (Morris et al., 2015). A marketing model, on the otherhand, is associated with marketing plans, communications reviews,both online and offline and imminent audits that are to be conducted.Marketing models help organizations predict their growth. It outlinestimelines for growth, and the factors needed to bring growth inorganizations, even in times of adversity (Morris et al., 2015). Boththe business and product models have the same roles in differentfields.
Morris,M., Schindehutte, M., Richardson, J., & Allen, J. (2015). Is thebusiness model a useful strategic concept? Conceptual, theoretical,and empirical insights. Journal of Small Business Strategy, 17(1),27-50.