Business Model
Business Model
A business model is a strategic plan formulated by an organization, which includes all the functions and components of a business in order to produce revenue and make profit out of business operations. The model basically incorporates the selected ways to generate revenue and to manage the expenses it incurs (Osterwalder & Pigneur, 2013).
Types of Business Models
There are several types of business model with a different set of focus towards achieving the target of generating revenue. Some models are inclined towards generating profit by directly selling a product or a service while other prefers to provide a platform for advertisers and earn through advertisement. There are also models that tend to earn through various innovative techniques e.g. providing discounts etc. Like for instance, the ‘direct sales' model focuses on the generation of revenue by the selling of products and services through the network of salespersons. Other than that, the ‘Bait and Hook' model focuses on offering a product or a service for free or at a low cost at the beginning to stimulate excitement. However, it eventually aims to capture the consumer in the long run and starts changing premium after some time. Contrary to that, the ‘Subscription Model' aims at retaining customer under the long-term contract. This model is preferred where the cost of acquisition of a customer is quite high. The goal of this model is to secure the revenue, which is recurring through the repeated use of the product or service (Zott, Amit & Massa, 2011).
Selected Business Model for my Business
I think that the best business model for my Cyber Security Consulting Services business is the Subscription Model. It is because, in my line of business, the customer acquiring cost is high as my business requires B-to-B selling. It is quite challenging to convince organizations to try our product. Therefore, it is necessary to secure the customer in a long run so that the revenue keeps flowing in.
References
Osterwalder, A., & Pigneur, Y. (2013). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Zott, C., Amit, R., & Massa, L. (2011). The business model: recent developments and future research. Journal of Management, 37(4), 1019-1042.
