New business models

A study by Data Observer and Opinionway entitled “Which business models in career acceleration?” », Releases the most frequent business models in our companies. If the Swiss University of Saint Gall identified 20 as possible, 9 would be more available than the others. Some companies use more than one. Focus on the main types of business models.

A wide variety of business models

Subscription (10%)

This business model has proven itself in the sale of magazines or newspapers because it offers many opportunities: customer loyalty, cash reserve, simplicity of inventory management, easy to implement predictions and low risk. of non -payment. however, This business model requires having a strategy to encourage consumers to subscribe without them being too frustrating. Among other things, we can, for example, give them access to 1 or 2 articles before blocking access as the media does (les échos, le parisien, liberation, etc.), show only part of one attractive content, offer articles accessible only to subscribers, or even promise subscriber pages to be displayed without advertising … Every day, we see different media, for example, we offer subscriptions using different techniques.

The platform or marketplace (8%), a win-win business model

The market business model occupies an increasingly prominent place. We think in particular Ebay, Rakuten or Le Bon Coin. The marketplace offers a complete catalog of products on its site because it sells products other than itself. If you go through a marketplace for your products/services, your offer will therefore be mixed with others and the difficulty will depend on your ability to distinguish yourself to stand out from the crowd. You can reach a qualitative target without having to spend a marketing and communication budget because it comes naturally to the marketplace. In return, you have to pay commissions when you make sales and you don’t control its evolution.

Rental (8%)

Renting has become a frequent habit of consumption. If until recently ownership was a social recognition, it is no longer the same today: the two most notable examples are carpooling and coworking. This business model challenges the traditional “buy-sell” model, which is beneficial for consumers and businesses. According to a study conducted by IFOP for Zuora – a cloud solution focused on consumption by subscription – more than one in two French people feel out of touch with traditional consumption patterns and say ready they rent their products instead of buying them.

The sale of licenses (8%)

The sale of licenses is a business model that allows a company to expand its brand into other territories, or for an industrialist to develop other products with the image of a well -known brand.

In the case of a sale to an industrialist, the beneficiary makes available his brand and the industrialist has his skills. This association can yield a derivative product. Compensation is usually made by the industrialist who pays royalties to the rights holder. The principle is to maximize the popularity of a well -known character or a movie like Star Wars. The film can provide derivative products to toy stores for example.

In normal cases, it makes it possible to make additional margin, for example, in an area that the brand does not want to exploit. The sale can be simple or be subject to additional commission depending on the turnover achieved. Finally, it can be the ability to use a product.

The sale of consumables (7%)

Printers, razors, coffee machines, etc. are sold at attractive prices that allow the accessories to be sold in large quantities at less attractive prices. This business model is based on a fairly simple method: you sell a product at a very attractive price compared to the competition (this is the bait product). Then, to use it, you need to buy additional accessories for which the company makes margins that sometimes exceed imagination (this is the hook). These accessories are usually disposable and have a relatively short lifespan, forcing you to replace them. It should be noted that the products and accessories are subject to patents, which prevents competitors from making cheaper accessories.

Freemium (5%)

The business model is a mix between the “free” model and the “premium” model. “Free” offers a free service and “premium” is a paid and high-end service. The strategy put in place is to get as many customers as possible to subscribe to its free service so that they can lead the paid service. Then we talk about the premium conversion rate. A so-called “premium” subscription is often a paid subscription, in exchange for which the company offers products or services that are better than the free basic version. Skype offering telecommunication services over the Internet. The Skype offer is shared between a free service, which makes it possible to communicate from one computer to another computer, and a paying service that makes it possible to call landlines or mobile, anywhere in the world. Through this service Skype generates revenue, while the premium conversion rate is less than 10%. The company Gameloft offers many games that are free but linked to paid features. These functions allow, for example, to buy items in the game that allow to pass the levels faster. So a patient player can play his salary, while a player who hurries to pass levels is likely to pay to speed up his progress.

The low cost with sales of additional products (4%)

Many sectors such as air transport, rail transport or mobile telephony have so -called “low cost” players.

The low cost model offers very attractive prices to attract more customers by reducing the product or service offered as much as possible. “Low cost” has a particular focus on consumer needs. The initial service or product therefore has no options to get paid if you want to get them. Ryanair, an air carrier that has become one of the market leaders with more than 70 million passengers generates revenues amounting to 100 million euros. They offer a seat but if you want to eat, drink coffee or bring a large suitcase, then you have to pay extra. Ouigo is SNCF’s “low cost” service that lets you take a TGV from 10 € for a Paris-Marseille. Any other services such as electrical outlets or additional baggage will be charged to you. Finally, the distribution system primarily uses the internet which significantly reduces costs (no agency at the station, fewer employees, etc.).

The deductible (4%)

The number of franchisees has grown dramatically because there are many advantages: the network where one wants to set up a franchise is already benefiting from its popularity and visibility. Therefore, he will not need to have a marketing and communication budget for his brand. Additionally, the franchisor possesses real market and customer experience at can support the franchisee. That is why he has no strategic decision to make., the franchisor takes care of making all the important decisions that help build the brand. The entry fee, the possible royalties as well as the ability to quickly build a brand attract many entrepreneurs to use this business model to build.

The white label (3%)

White label is a great practice to generate its turnover without investing large amounts in communication or marketing. The brand is not known to the general public but the company benefits from the reputation of the supplier or the customer while personalizing the product with its image (graphic charter, design, color, etc.).

For companies, this business model offers them the possibility to build the same white label business by being, for example, the supplier of Toyota cars and at the same time having a visible outside presence. and thus developing their business with many customers. . Customers believe, for example, that all the accessories of a car are made by the brand when they are made by a company under the aegis of the white label.

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