Consider a local business whose services you frequently use. What are the main components of this company's business model?
You may find this site useful as you consider one of your local companies and its business model.
http://digitalenterprise.org/models/models.html
Consider a local business whose services you frequently use. What are the main
components of this company's business model? Using Figure 1.2 on p. 11 of your text as
a guide, describe the three components of the business system that comprise the local
business you selected. Your response should be 200-300 words in length.
Gas Company
To determine the main components of a local business's business model that you frequently use, you can follow these steps:
1. Identify the local business: Think of a specific local business that you are familiar with and whose services you frequently use. It could be a restaurant, a clothing store, a salon, or any other type of business.
2. Research the business: Gather information about the business by visiting their website, reading customer reviews, or even visiting the physical location if possible. Look for details about their services, products, and how they operate.
3. Determine the value proposition: Identify the core offering of the business. What makes their services unique or appealing to customers? For example, a restaurant might focus on offering authentic cuisine from a specific region.
4. Assess the target market: Determine the specific group of customers that the business caters to. Consider their demographics, preferences, and needs. For instance, a clothing store might target fashion-conscious individuals between the ages of 18-35.
5. Analyze the revenue streams: Identify the various sources of income for the business. It could be through direct sales of products or services, memberships, subscriptions, advertising, or any other revenue-generating streams.
6. Evaluate the cost structure: Explore how the business manages its expenses, including fixed costs (e.g., rent, utilities) and variable costs (e.g., inventory, wages). This will give you an idea of their cost structure and profitability.
7. Discover the key activities: Determine the main activities the business engages in to deliver its services or produce its products. These could include sourcing materials, manufacturing, marketing, customer service, or any other significant operations.
8. Identify the key resources: Identify the essential resources the business relies on to operate effectively. This could include physical assets (e.g., equipment, inventory), intellectual property (e.g., patents, copyrights), or human resources (e.g., skilled employees).
9. Understand the distribution channels: Determine how the business reaches its customers and delivers its products or services. It could be through a physical storefront, an online platform, partnerships with other businesses, or a combination of channels.
10. Assess the customer relationship strategy: Explore how the business builds and maintains relationships with its customers. This may include personalized experiences, loyalty programs, excellent customer service, or other strategies to enhance customer satisfaction.
By following these steps, you will gain a comprehensive understanding of the main components of the business model of the local business you frequently use.