Consider a local business whose services you frequently use. What are the main
components of this company's business model? describe the three components of the business system that comprise the local business you selected.
To determine the main components of a local business's business model, you need to gather information about the business and understand its operations. Here are three components that usually comprise a local business:
1. Value Proposition: This component defines the unique value that the business provides to its customers. It involves identifying the products or services that the business offers and how they meet the needs or solve the problems of its target customers. To understand a local business's value proposition, you can visit their website or analyze their marketing materials to identify their core offerings and the benefits they claim to provide.
2. Revenue Model: This component explains how the business generates revenue and sustains its operations. It includes the pricing strategy, revenue streams, and the target customer segments that the business focuses on. To determine the revenue model of a local business, you can explore their pricing structure, payment methods, any membership or subscription plans they offer, and any other sources of income they may have.
3. Customer Relationships: This component describes how the business interacts with its customers and fosters long-term relationships. It involves understanding the communication channels the business uses to engage with customers, the customer support services it provides, and any loyalty programs or initiatives aimed at retaining customers. To assess the customer relationships of a local business, you can explore their website for contact information, reviews or testimonials from customers, and any customer engagement activities they promote (such as social media presence or newsletters).
By analyzing these three components - value proposition, revenue model, and customer relationships - you can gain a better understanding of how a local business operates and delivers its offerings to customers. Keep in mind that each business can have unique elements in its business model based on its industry, target market, and competitive landscape.