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BMS NOTES

These are Business modelling Studio Notes.

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alinatanveer85
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
41 views

BMS NOTES

These are Business modelling Studio Notes.

Uploaded by

alinatanveer85
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

1.

Unbundling Business Model

This model breaks down a business into its core functions, allowing each to specialize
and perform better. It’s based on the idea that trying to do everything can dilute focus
and efficiency.

• Core Components:
o Customer Relationship Management: Focuses on building strong
customer loyalty.
o Product Innovation: Developing cutting-edge products or services.
o Infrastructure Management: Efficiently managing resources and
logistics.
• Example:
o Netflix: Instead of running cinemas or producing physical DVDs, Netflix
specializes in providing an online platform for streaming.
o Telecom Industry: Companies like AT&T unbundle voice, text, and data
services, letting customers choose what they need instead of selling
everything as a package.

2. Corporation’s Business Model

A corporation uses multiple divisions or subsidiaries to cover different markets or


industries. Each unit works independently but shares resources like brand recognition,
capital, and expertise. This structure minimizes risk and maximizes growth
opportunities.

• Key Features:
o Diversification across industries.
o Centralized strategy and resource allocation.
• Example:
o Procter & Gamble (P&G): Owns brands like Tide (detergents), Pampers
(diapers), and Gillette (shaving products). Each brand has its unique
audience but benefits from P&G’s global distribution network.
o Apple: Combines product categories like iPhones, iPads, and MacBooks
with services like Apple Music and iCloud under one corporate umbrella.
3. Private Banking Model

This model is designed to serve wealthy individuals, offering tailored financial services
like wealth management, estate planning, and investment strategies. Unlike
commercial banks, private banks offer one-on-one attention and discretion.

• Key Services:
o Customized investment portfolios.
o Wealth protection and inheritance planning.
o Tax advisory and real estate consulting.
• Example:
o Habib Bank Limited (HBL) Private Banking: Caters to affluent
individuals in Pakistan, offering services like asset management and
personalized banking.
o UBS (Switzerland): One of the largest private banks globally, focusing on
ultra-high-net-worth individuals.

4. Telco Business Model

Telecom companies earn revenue by offering network-based services like voice calls,
SMS, and internet connectivity. With the rise of digitalization, they’ve expanded to
include financial services, entertainment platforms, and data solutions.

• Revenue Streams:
o Subscription fees for telecom services.
o Value-added services like mobile wallets or streaming apps.
o Selling customer data insights to advertisers.
• Example:
o Jazz (Pakistan): Provides affordable mobile packages alongside
JazzCash, a mobile wallet for online payments.
o Verizon (USA): Offers broadband, TV streaming services, and IoT
solutions for businesses.

5. Longtail Business Model

This model focuses on selling niche products that have low demand but collectively
generate significant revenue. Instead of prioritizing bestsellers, the business targets
diverse customer preferences.
• Key Principle: The combined demand for less popular products can rival or
exceed the demand for popular ones.
• Example:
o Amazon: Offers millions of niche items alongside bestsellers, generating
consistent revenue from rarely purchased items.
o Netflix: Streams both blockbuster movies and obscure indie films,
catering to a wide audience base.

6. Book Publishing Business Model

This model includes traditional publishing houses and self-publishing platforms.


Publishers handle manuscript acquisition, editing, marketing, and distribution, while
self-publishing empowers authors to publish independently.

• Revenue Streams:
o Royalties for authors (usually a percentage of sales).
o Licensing rights for movies, TV, or merchandise.
• Example:
o Traditional Publishing: Penguin Random House manages the entire
lifecycle of a book, from manuscript to sales.
o Self-Publishing: Amazon Kindle Direct Publishing lets authors publish
and sell their books globally without relying on traditional publishers.

7. Lego’s Business Model

LEGO thrives by creating highly interactive, creativity-driven products. Its model


emphasizes user engagement, licensing partnerships, and digital experiences.

• Key Strategies:
o Licensing deals (e.g., Star Wars, Harry Potter).
o Expanding into digital realms with LEGO-themed video games and apps.
o Running LEGO theme parks (LEGOLAND).
• Example:
o LEGO Ideas: Fans can submit set designs, and winning ideas are
produced and sold globally.
o LEGO Star Wars: Combines the popularity of Star Wars with LEGO’s
creativity-focused products.
8. Google’s Work Model

Google combines advertising revenue with subscriptions and cloud computing. It


provides free tools (like Google Search, Gmail) to attract users and monetizes through
ads or paid services.

• Key Features:
o Offers free, easy-to-use tools (e.g., Docs, Sheets).
o Revenue from targeted advertising and subscriptions (Google
Workspace, YouTube Premium).
• Example:
o Google Ads: Advertisers bid for placements on Google’s search engine
and partner sites.
o YouTube: Free for users but generates ad revenue from millions of
creators.

9. PSP/Xbox Comparison Model

Both PlayStation (PSP) and Xbox follow a hardware + software ecosystem model. They
sell gaming consoles at competitive prices and make profits from game sales,
subscriptions, and add-ons.

• Revenue Streams:
o Console sales.
o Game purchases.
o Online subscriptions for multiplayer gaming.
• Example:
o PlayStation Plus: Offers online play and free monthly games.
o Xbox Game Pass: A subscription service that gives access to hundreds
of games for a monthly fee.

10. Freemium Business Model

The freemium model offers basic services for free while charging for premium features.
It builds a large user base and encourages upgrades.

• Example:
o Spotify: Free version with ads, premium version with no ads and offline
access.
o Canva: Free design tools for basic use, premium templates and features
for a subscription fee.

11. Advertising Business Model

This model relies on providing free content or services to attract users while generating
revenue through advertisements. The more users a platform has, the more attractive it
is to advertisers.

• Example:
o Facebook (Meta): Free social networking, funded by targeted ad
campaigns.
o YouTube: Free video streaming, earning revenue from ads shown before
or during videos.

12. Multisided Business Model

This model connects two or more groups that benefit from each other. The platform
makes money by facilitating these interactions.

• Example:
o Uber: Connects riders with drivers, earning a commission on each ride.
o Airbnb: Connects property owners with travelers and takes a service fee
from bookings.

13. Twist Business Model

This model tweaks or improves an existing idea to offer a unique angle. It often targets
underserved markets or adds innovative features.

• Example:
o Warby Parker: Sells eyeglasses online with a home try-on program.
o Tesla: Combines direct sales with cutting-edge electric vehicle
technology, avoiding traditional dealerships.
14. Insurance Business Model

Insurance companies pool risks by collecting premiums and providing financial


protection against unforeseen events. They profit when claims are lower than
premiums collected.

• Example:
o State Farm: Offers comprehensive coverage for cars, homes, and lives.
o Microinsurance in Developing Countries: Telenor Pakistan’s Easypaisa
offers small-scale insurance for medical emergencies.

Business Model of Twix (Mars Inc.)

1. Product Differentiation:
a. Twix is unique due to its "two-bar format", combining cookie, caramel,
and chocolate.
b. This design allows it to stand out among single-bar chocolates.
2. Mass Production and Cost Efficiency:
a. Twix is manufactured in high volumes at optimized production costs,
ensuring affordability while maintaining quality.
b. Being part of Mars Inc. allows it to leverage economies of scale.
3. Marketing and Branding:
a. Twix uses catchy advertising campaigns, such as the "Left Twix vs. Right
Twix" concept, to engage consumers playfully and create buzz.
b. Consistent branding ensures that Twix is recognizable globally, making it
a household name.
4. Global Distribution:
a. Twix is sold worldwide through diverse retail channels, including
supermarkets, convenience stores, and online platforms.
b. Its availability in single, multi-packs, and mini sizes caters to varying
consumer preferences.
5. Target Market:
a. Primarily aimed at young adults and children, Twix appeals to those
seeking indulgent snacks or on-the-go treats.
6. Product Innovation:
a. Twix occasionally introduces new variants like Twix White, Twix Peanut
Butter, and seasonal editions to maintain consumer interest.
7. Sustainability Efforts:
a. As part of Mars Inc., Twix is committed to sustainable sourcing of cocoa
and reducing environmental impact through responsible packaging
practices.
Example of Twix's Marketing Success

The "Left Twix vs. Right Twix" campaign humorously pretends that each Twix bar is
different, encouraging customers to "choose a side." This clever strategy boosted
engagement, sales, and brand identity by creating a fun, fictional rivalry.

Twix thrives on combining innovative marketing, efficient production, and a


delicious product to sustain its global success.

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