The 4 Business Model Categories
Let us help you understand the business models better by checking out our library of exemplars:
A business is not a company
Most companies own and operate many different businesses, each of which may have a different business model
An automobile company offers a product as its core business model; but most companies also offer after-sales-service, another business model (Solutions) in its portfolio.
A marketing consulting company uses a service- work-for-hire business model; but many also sell the results of surveys as products, a different business model (Product) in the company’s overall portfolio.
An industry may accommodate a variety of business models
Most industrial contexts consist of companies which operate different business models
In the Finance industry, companies enable customers to borrow and lend money through a product business model (bank) and a match-making business model (peer to peer).
In the Media industry, companies can engage in both a multi-sided business model (advertisement) and a product business model (films, games) in creating entertainment value.
We have further categorized our Zoo™ of business model exemplars under the six industry sectors within which they operate: Finance, Retail, Marketing, IT, Travel and Media. These Industry Maps illustrate the diversity of each industry's business model landscape. Each quadrant represents one of the four business model types; the size of the company name is contingent upon its valuation.
The Business Model Zoo™ Exemplars:
What is the Business Model Zoo™?
Our elemental business models are “ideal types”; real world business models are different – because of context. Our Business Model Zoo™ contains many examples that show how firms (often famous ones) actually build and deploy business models in different industries and for different products and services.
Studying our Business Model Zoo™ allows you to deepen your understanding of how the elemental categories are deployed in the real world; improve your appreciation of the DIFFERENCES between business model categories and improve your ability to DESIGN a better business model.