1. Ag III Unit 4 Business Models
Pearl River High School

2. Business Models Business Models Business Model 4 Self Gen
A conceptual structure that support the viability of a product or company
Includes purpose and goals of company and how it intends to achieve them
Has two parts
1 deals with design and manufactory of a product
2 how to sell the product and how to find customers

3. Business Models Business Models Types of Business Models 4 Self Gen
Manufacturer
Distributor
Aggregator
Retailer
Franchise
Bricks-and-clicks
Nickel-and-dime
Freemium
Subscription
High Touch
Low Touch

4. Business Models Business Models Manufacturer 4 Self Gen
Intakes raw materials
Outputs finished products
Sells to another company or directly to the consumer
Ex: Car companies, 3M, GE

5. Business Models Business Models Distributor 4 Self Gen
Inputs finished products
Outputs finished products
Buys from manufactures
Sells to resellers or direct to consumers
Ex: auto dealerships

6. Business Models Business Models Aggregator 4 Self Gen
Recently developed model
Various service provider
Company sells their services its own brand
Money is earned as commissions
Ex: Uber, Airbnb

7. Business Models Business Models Retailer 4 Self Gen
Inputs finished products
Purchases from Distributers, or Manufactures
Sells directly to the public
Ex: Amazon, Walmart

8. Business Models Business Models Franchise4
Self Gen
Business Models
Franchise
Can be a manufacturer, distributor or retailer
Uses parent business’s model and brand
Does not create their own products
Pays royalties to parent companies
Ex: McDonalds, Rotolos

9. Business Models Business Models Bricks-and-Clicks 4 Self Gen
Has both offline and online presence
Allows costumers to pick up products from physical stores or place online orders
Give flexibility to the business
People can shop the store if there is no brick and mortar location near
Ex: most major retail operations

10. Business Models Business Models Nickel-and-Dime 4 Self Gen
Basic products provided to consumers
Very cost-sensitive having products priced as low as possible
Other services that come with it additional charges may be placed
Ex: Family Dollar, Dollar General

11. Business Models Business Models Freemium 4 Self Gen
Common model for internet businesses
Basic service is free
Charge premiums for add-ons
Ex: Dropbox, YouTube

12. Business Models Business Models Subscription 4 Self Gen
Customers pay a rate for a set time frame
Business give access to the customers for this fee
Ex: Netflix, Dollar Shave Club

13. Business Models Business Models High Touch 4 Self Gen
Requires a large amount of human interaction
Relationship between sales person and customer is very important
Customer has a huge impact on overall revenues of the company
Operate on trust and credibility
Ex: Hair salons, consulting forms

14. Business Models Business Models Low Touch 4 Self Gen
Requires minimal human assistance or interaction in selling a product or service
Do not have to maintain a huge sales force
Companies focus on improving tech to reduce human intervention while making customer experience better
Ex: Ikea, SurveyMonkey