01. Product Model



The company develops a product or standardized service and sells it to customers. The value proposition is transactional: to provide a product or standardized service that customers will buy.



The company engages with a customer about a problem the customer faces, and provides an integrated solution. The value proposition is relational: to tailor solutions to each customer.



The company joins buyers and sellers in its online or physical marketplace. The value proposition is transactional: to facilitate exchange.



The company provides different products or services to different customer groups. The value proposition is multi-sided: one customer group gets additional benefits from the other group’s transactions.

This is how it works:

image/svg+xml image/svg+xml FIRM CUSTOMER Payment Product or Service

A dyadic relationship where the Firm creates a product or service that is sold to Customers. The value proposition is transactional.

Selling products or services is the oldest and most common form of business model. Exemplars for B2C include Ford motor cars; McDonald’s hamburgers, and for B2B companies include electric motors for consumer durables. This pathway requires:

~ Identifying potential customers

~ Identifying how to capture awareness and create demand

~ Identifying mechanisms of monetization - that include unit price, freemium, razor-blade, discounts for quantity

~ There are many ways the firm can be structured that include: hierarchical-integrated or unbundled-networked among partners of suppliers and channels

SCALABILITY – Greater volumes typically reduce costs

PROFITABILITY – When the firm achieves scale and there are high entry barriers

RISK – Copycat products especially those with lower costs.

Typical examples:

  • - Achica (close)

    Achica is an online retailer company with a niche in luxury home-ware goods; it is an example of a product business model, offering discounted luxury good products to ‘exclusive members’ (who must sign-up by email to join). Achica connects this... › Read more

  • - Acturis (close)

    Acturis Ltd operates a typical servitized product business model in which it offers an IT service to the Insurance Industry. Their IT product is a front and back-office system used by brokers and underwriters, which has been fully live for nearly 10 years,... › Read more

  • - Affirm (close)

    Affirm is a fintech business using a product business model to offer credit facilities to consumers on specific purchases at selected retailers and offering additional services to retailers. Affirm’s core business is not a matchmaker model since reta... › Read more

  • - Amazon Instant Video (close)

    Amazon Instant Video is an example of a product business model: Video on Demand (VoD) streaming is offered for a subscription fee. It is important to note that Amazon Instant Video forms just one part of Amazon’s portfolio of business models, which i... › Read more

  • - AO World (close)

    Ao World Plc, headquartered in Bolton, UK operates an exemplar Product business model. The company is an online retailer specialized in household goods such as washing machines, dishwashers, freezers and cooking appliances. The company purchases these prod... › Read more

  • - Box.com (close)

    Box, headquartered in Los Altos, California, is an enterprise software company, which enables users to store documents in the cloud. The primary business model is a product, in which the company sells cloud storage and file management to individuals and co... › Read more

  • - Calastone (close)

    Calastone connects trading partners through its global fund transaction network. More than 980 customers in 28 domiciles are currently processing domestic and cross border transactions via Calastone. Calastone uses smart technology solutions and industry c... › Read more

  • - Chemist Direct (close)

    Chemist Direct is an online pharmacy that offers discounted prices on prescription and over-the-counter medications directly to customers. It purchases medications in bulk, and passes the savings on to consumers. Aside from products, it also provides a ran... › Read more

  • - Coinbase (close)

    Coinbase is a digital currency wallet diversifying its product business model to offer buying/selling/storing services for digital currencies to consumers and merchants. The company presents also some elements of a market matchmaker, connecting consumers a... › Read more

  • - DataSift (close)

    DataSift is an example of a product business model. The company uses algorithms to sift through and harness the power of Human Data in real-time. Human Data covers the entire spectrum of human-generated information, including social networks, blogs, news s... › Read more

  • - Evernote (close)

    Evernote embodies an “exemplar” product business model: its core offering is a suite of software and services that enable users to find, capture, store, organize, and access information across multiple platforms and devices. The customer can us... › Read more

  • - Global Fashion Group (close)

    Global Fashion Group (GFG) offers brands the chance to enter the fashion e-commerce sector in emerging markets. ... › Read more

  • - Go Cardless (close)

    GoCardless is an example of a Product business model. It provides direct debit service to its clients, who are individuals with bank accounts and companies that want an automated payment method to pull payment directly from their customers' bank accou... › Read more

  • - Graze (close)

    Graze.com (Graze) is an example of a Product business model in the food delivery industry: healthy, carefully proportioned snacks and meals are delivered in letter-box sized packages, through the post, to homes and offices in return for a per-box charge. I... › Read more

  • - Horizon Discovery (close)

    Horizon Discovery Group is a UK translational genomics company developing and supplying patient-relevant drug discovery and diagnostic research tools. It is an example of a product business model. Horizon is building scale partly through acquisitions. It b... › Read more

  • - Huddle (close)

    Huddle is a cloud based collaboration product that helps people work together on projects. It lets employees of an organization focus on mission and business-critical tasks rather than deal with communication bottlenecks or IT infrastructure issues. The pr... › Read more

  • - JustFab (close)

    JustFab is an online retailer that offers its female customers a range of shoes, apparel and bags. ... › Read more

  • - Kabbage (close)

    Kabbage Inc. is a US financial technology and data company that provides automated underwriting and lending to SMEs and individuals. The company also licences its data and technology platform to facilitate lending for other organisations. Kabbage operates ... › Read more

  • - Klarna (close)

    Klarna is an ecommerce payment solutions company that operates a product business model. Klarna’s online platform replaces the checkout on ecommerce websites and allows consumers to access instant credit and to pay after their order has been delivere... › Read more

  • - Made.com (close)

    Made.com represents an “exemplar” product business model in the designer furniture sector. The model revolves around an online platform which links (a) innovative designers as suppliers to made.com and b) end-customers seeking design-led furnit... › Read more

  • - Marvel Worldwide, Inc. (close)

    Marvel Worldwide, Inc. is an example of a “product” business model. The company creates intellectual property for its parent company, Marvel Entertainment LLC, in the form of characters and stories for comic books that are sold directly to cons... › Read more

  • - Masternaut (close)

    Masternaut is an example of a “product” business model. The company provides fleet management software for businesses operating vans, trucks, and other trade vehicles. This software interfaces with tracking units installed in vehicles and in t... › Read more

  • - Matchesfashion (close)

    Matchesfashion.com represents a product business model. The company sells clothing and accessories for both sexes from over 400 established and emerging designers. Apart from physical products, the company also sells ‘intellectual’ products, st... › Read more

  • - Mediatonic (Product Model) (close)

    UK video game developer Mediatonic currently finds itself in a transitional phase where it is shifting away from a service (work-for-hire) model towards a product model. Facilitated by the advent of online distribution channels such as Facebook and Apple&r... › Read more

  • - MedicAnimal (close)

    MedicAnimal.com represents a classical “product business model” in the pet supplies retail sector. The online retailer, located in London, sells pet products such as pet food, accessories and prescription medicines. The company, which is regist... › Read more

  • - Mimecast (close)

    Mimecast is a British software company that sells could-based email management services for Microsoft Exchange and Office 365. Its customers tend to be SMEs that do not have extensive IT departments, and Mimecast’s email management software provides ... › Read more

  • - Mind Candy's "World of Warriors" (close)

    Mind Candy is a company operating a number of children’s entertainment brands; each with distinct business models. Indeed, Mind Candy operates an exceptionally diverse portfolio of business models for its relatively small size. Among its brands/busin... › Read more

  • - MODE (close)

    Mobile Decisioning (MODE) is a company that leverages technology to provide Airtime Credit Services (ACS) to mobile network subscribers and salary advance credit services to registered customers. It is an example of a product company that has converted its... › Read more

  • - Moo (close)

    MOO is an online retailer company with a niche in personalized stationery, offering a variety of product lines including business cards, postcards, letterhead, etc.; it is an example of a product business model, offering small-batch, personalized and custo... › Read more

  • - MyOptique (close)

    MyOptique is an example of a product business model. Under several brand labels, the company sells glasses and contact lenses to retail customers by purchasing glasses wholesale, warehousing them, and reselling them via their website to retail customers. ... › Read more

  • - NeoMobile (close)

    NeoMobile is an example of a product business model. It is a mobile commerce company that enables companies to charge customers for products or services directly through their cell phone bills. This so-called direct carrier billing is an alternative form o... › Read more

  • - Netflix (close)

    Netflix represents a classical “product” business model in the video-on-demand industry where users pay a subscription fee to access Netflix’ library of films and television shows. Netflix was one of the pioneers of offering entertainment... › Read more

  • - Omnifone (close)

    Music provider Omnifone operates a product business model. It sells its primary product, MusicStation – a cloud-based music streaming application – to makers of consumer electronics products (e.g., Sony), internet service providers, and telecom... › Read more

  • - OrderDynamics (close)

    OrderDynamics operates a “product” business model, in which the company provides retail clients with customizable ecommerce platforms that allow a retailer to enter the online market place with minimal capital expenditure and skill levels. The ... › Read more

  • - Oscar Health (close)

    Oscar Health is an American health insurance provider that operates a product business model. The company was founded in 2012 to take advantage of the new markets and millions of people that gained access to insurance under the Affordable Care Act.... › Read more

  • - Performance Horizon (close)

    Performance Horizon operates an exemplar Product business model in a space called digital partner marketing (where advertisers pay partners to drive sales). Through their Software-as-a-Service model, Performance Horizon’s core technology enables mark... › Read more

  • - Photobox (close)

    Photobox is an example of a company that operates a portfolio of business models. In this write-up, we focus on their customizable printing brand, which is an exemplar of a Product business model. In this business model, the company offers its customers th... › Read more

  • - Qubit (close)

    Qubit represents a “product” business model in the digital marketing industry where users pay a usage based subscription to access Qubits suite of website traffic analysis and website enhancement tools. Qubit offers a sophisticated set of tools... › Read more

  • - Ratesetter (close)

    Ratesetter is an example of a product business model. It connects lenders to borrowers, but the sides are kept separated as exact details of who the lenders and borrowers are is not disclosed to either side, and no choice of borrowers is presented to the l... › Read more

  • - RepKnight (close)

    RepKnight is an exemplar of a Product business model. The company’s software captures, analyses and reports on data from open source digital, social media, and dark web sources. Governments, defence, law enforcement agencies and companies use this i... › Read more

  • - SecretSales (close)

    SecretSales is an example of a Product business model. It purchases excess or out-of-date inventory from fashion retailers and resells it to retail customers at a discounted price. The company operates a website through which customers browse and purchase ... › Read more

  • - Small World Financial Services (close)

    Small Word Financial Services (“Small World”) is an exemplar of a product business model. The company is one of Europe’s largest money transfer providers. Customers can transfer money via account transfer, mobile top-up, mobile wallet, ho... › Read more

  • - SoFi (Social Finance) (close)

    SoFi originally utilised a matchmaking business model that linked wealthy university alumni with recent graduates looking to refinance their student loans. The company only offered loans to graduates from top tier or Ivy League universities and found wealt... › Read more

  • - Spotify (close)

    Spotify is a music streaming platform which provides users content from record labels and media companies. Spotify employs a ‘Freemium Model’: users can enjoy a free version paid for by advertisers, and a premium, ad-free version.... › Read more

  • - Stripe (close)

    Stripe is a payment processor that operates a product business model. The company sells a payment system that can be incorporated into websites and mobile applications enabling businesses to offer a fast, simple, secure online purchasing. Stripe’s pa... › Read more

  • - SwiftKey (close)

    SwiftKey represents a product business model in the technology industry that replaces the touch keyboard of iOS and Android devices such as smartphones and tablets. It uses a blend of artificial intelligence technologies that enable it to predict the next ... › Read more

  • - Synthesio (close)

    Synthesio is an example of a product business model. The company monitors social media to ‘sense’ public sentiments about a product or brand, allowing companies and marketing agencies to understand and connect with their customers. The jargon t... › Read more

  • - Tesla Motors (close)

    Tesla is an automotive firm that designs, engineers, manufactures and sells cars using a “product” business model. Tesla mobilises technology within the vehicle itself, and other technologies that are separate to the product. Tesla has develope... › Read more

  • - Transferwise (close)

    Transferwise is a currency exchange and money transfer service that operates an exemplary product business model. It operates by pairing exchange transactions between different currencies. For example, if an individual wishes to send £1,000 to a US b... › Read more

  • - Venntro Media Group (close)

    Venntro Media Group represent an “exemplar” product business model, which provides individuals and companies the technology and web hosting capabilities to set up their own online dating websites. Venntro Media Group are one of the world&rsquo... › Read more

  • - Vice Media (close)

    Vice Media is a global leader in the creation and distribution of of high-impact news content, primarily targeted at a Millennial audience. Vice distributes its video and text content to users for free via its website, social media accounts, YouTube channe... › Read more

  • - WorldRemit (close)

    WorldRemit is an example of a “product” business model. The company has created a product allowing customers to transfer money electronically via its website or mobile phone app to third parties. The senders are given the option of paying the m... › Read more

  • - Worldstores (close)

    Worldstores is an example of a Product business model in the retail homewares sector. The company buys products from manufacturers and wholesalers around the world and resells them to retail customers in the UK. It uses algorithms and software to monitor o... › Read more

  • - ZipCar (close)

    ZipCar represents a product business model in the automotive industry that mobilizes location technology and cardkey technology. The sells access to a network of cars owned by ZipCar located in densely populated residential areas to drivers who need a car ... › Read more

Examplars libary:

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