M3 and M4

• It's the operating model of the business that elaborates?

  Key Activities, Key Partners, Key Resources, Key Channels, Customer Relationships
• Under the operating model of the business that answers: What all offerings does the business sell to the customers?

  Key Activities
• Under the operating model of the business that answers: Who all help the business in delivering value to the customers?

  Key Partners
• Under the operating model of the business that answers: What all resources does the business use to develop and deliver its offerings?

  Key Resources
• Under the operating model of the business that answers: What channels does the business use to deliver its offerings to the customers?

  Key Channels
• Under the operating model of the business that answers: What type of relationships does the business maintain with its customers?

  Customer Relationships
• This component of the business model focuses on elaborating on the financials and how the business makes money?

  Revenue Model
• What are the two components of the revenue model of the business?

  Cost Structure, Revenue Streams
• Includes all the expenses that the business incurs in creating and delivering value to the customers?

  Cost Structure
• Include all the primary and non-primary revenue streams that the business utilizes?

  Revenue Streams
• Acts as the blueprint of the business and a roadmap for its success (or failure)?

  Business Model
• This tool helps the founders decide how their business will work and make money?

  Business Model
• What are the types of business model?

  Manufacturer, Distributor, Retailer, Franchise, Brick-and-Mortar, Ecommerce, Bricks-and-Clicks, Nickel-and-Dime, Freemium, Subscription, Online Marketplace, Advertisement, Data Licensing/Data Selling, Affiliate Marketing, Drop Shipping, Network Marketing, Crowdsourcing, Blockchain, High Touch, Low Touch, Auction-Based, Reverse-Auction-Based, User Community, Multi-Sided Platform Model, Hidden Revenue Business Model, Bundling Business Model, Fractionalization Business Model
• Makes finished products from raw materials?

  Manufacturer
• It may sell directly to the customers or sell it to a middleman i.e., another business that sells it finally to the customer?

  Manufacturer
• Examples of Manufacturers?

  Ford, 3M, General Electric, San Miguel Corp., Nestle
• Buys products from manufacturers and resells them to the retailers or the public?

  Distributor
• Examples of Distributors?

  Auto Dealerships
• Sells directly to the public after purchasing the products from a distributor or wholesaler?

  Retailer
• Examples of Retailers?

  Amazon, Tesco
• Can be a manufacturer, distributor, or retailer. Instead of creating a new product, the franchisee uses the parent business’s model and brand while paying royalties?

  Franchise
• Examples of Franchises?

  McDonald's, Pizza Hut, Jollibee
• Is a traditional business model where the retailers, wholesalers, and manufacturers deal with the customers face-to-face in an office, a shop, or a store that the business owns or rents?

  Brick-and-Mortar
• Is an upgradation of the traditional brick-and-mortar business model?

  Ecommerce
• It focuses on selling products by creating a webstore on the internet?

  Ecommerce
• A company that has both an online and offline presence allows customers to pick up products from the physical stores while they can place the order online?

  Bricks-and-Clicks
• This model gives flexibility to the business since it is present online for customers who live in areas where they do not have brick and mortar stores?

  Bricks-and-Clicks
• In this model, the basic product provided to the customers is very cost-sensitive and hence priced as low as possible. For every other service that comes with it, a certain amount is charged?

  Nickel-and-Dime
• This is one of the most common business models on the Internet?

  Freemium
• Companies offer basic services to the customers for free while charging a certain premium for extra addons?

  Freemiums
• Generally, the basic service comes with certain restrictions or limitations, such as in-app advertisements, storage restrictions etc., which the premium plans shall not have?

  Freemium
• Examples of Freemium?

  Zoom, Dropbox, MailChimp, Evernote
• If customer acquisition costs are high, this business model might be the most suitable option?

  Subscription
• Lets you keep customers over a long-term contract and get recurring revenues from them through repeat purchases?

  Subscription
• Examples of Subscription?

  Netflix, LinkedIn, Amazon Prime, Dollar Shave Club
• Aggregate different sellers into one platform who then compete with each other to provide the same product/service at competitive prices?

  Online Marketplace
• Builds its brand over different factors like trust, free and/or on time home delivery, quality sellers, etc. and earns commission on every sale carried on its platform?

  Online Marketplace
• Examples of Online Marketplace?

  Amazon, Alibaba
• Are evolving even more with the rise of the demand for free products and services on the internet, where the information is provided for free but are accompanied with advertisements which are paid for by identified sponsors?

  Advertisement
• With the advent of the internet, there has been an increase in the amount of data generated upon the users’ activities over the internet. This has led to the advent of a new business model?

  Data Licensing/Data Selling