Janet Featherstone At the point of creation, a new business has a strategy. There will come a time when that model is not as attractive as it originally was. Competitors may have entered the space, or upped their game, customers might be more demanding, margins may start coming under pressure, and you as the business owner might be working 12 hour days. If your business is to succeed in this volatile, uncertain, complex and ambiguous VUCA world, then it must understand exactly where it plays in the market that you have chosen, and most importantly, how it intends to succeed in this space.
There are various types of business models that most companies fall into. Many of those operate under the basic categories of manufacturer, distributor, retail or franchise.
In order to develop a successful business plan, you first need to determine which business model you would like to follow. This business model also applies to companies that assemble products from premade parts. For example, Dell Computers would be considered a manufacturer because it assembles its computers from parts made by other companies.
A manufacturer can choose to represent its products different business plan models to its customers, or it can outsource sales to another company. Distributor A distributor is any business that purchases products directly from a manufacturer for resale either to retail outlets, or directly to the buying public.
For example, a technology distributor would purchase computer parts from a technology manufacturer and then sell those parts wholesale to retail outlets for sale to the general public.
An auto dealership that deals in new cars would purchase vehicles directly from the manufacturer and sell them to the general public.
According to the University of Southern California, Wal-Mart Department Stores qualifies as a distributor because it purchases product directly from the manufacturer.
Not all department stores have that kind of purchasing power. Retail Outlet A retail outlet purchases product from a distributor or wholesaler, and then sells those products to the general public or to corporate end users.
Most department stores, with the exception of larger chains such as Wal-Mart, as discussed earlier, would be considered retail outlets.
Many online retailers purchase through wholesalers and follow the retail outlet business model. Franchise Model The franchise business model is unlike the others, because with a franchise you can be a manufacturer, distributor or retail outlet.
The type of business model you follow depends on the business you purchase, but with the franchise business model there is always the added element of the franchise company.
Franchising also incorporates the main kinds of business models within its own structure. Franchise Chat reports that you can purchase a franchise directly from the franchise company, or you can buy it from a master franchise distributor that is licensed to sell franchises in your region.
Thus, you employ the manufacturer, distributor or retail outlet model within the franchise business model.Create your visual business model or SWOT model with Canvanizer, business brainstorming blackboard, modelling tools.
May 14, · Different situations call for different types of business plans. An effective business plan will match its intended use.
Knowing these differences will help you plan successfully for the future of your business.4/5(41). See also ‘Workshop-Business Model Canvas‘ What’s the Business Model Canvas? If you’re already familiar, you can skip to the next section, ‘How do I get started?’.
The Business Model Canvas (BMC) gives you the structure of a business plan without the overhead and the improvisation of a ‘back of the napkin’ sketch without the fuzziness (and coffee rings).
The article is organized as follows. In the next section we define and discuss the notion of business models and present a tool to represent them, while the following section considers the stage two ‘choice’ in our framework, presenting and discussing the notion of tactics in relation to that of business model.
The following section then moves back to examine the first – strategy. In the broker business model, a broker acts as a facilitator for a business transaction. A broker might mediate purchases between buyers, either between two consumers, two retailers or between a consumer and a retailer.
A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and.