Advantages And Disadvantages Of The Traditional Business Model

A business model describes how the enterprise produces, sells and delivers producs and services, thus showing how it delivers value to the customers and how it creates wealth. In simple terms its how a business creates money. It includes the components and functions of the business including the revenues it generates and the expenses it incurs. There are four types of business models: creators, distributors, landlords and brokers. A creator manufactures the goods to be sold. A distributor sells or distributes the good. A landlord charges a fee for the use of his good. A broker stands in the middle and for a fee introduces consumers (buyers) to companies (sellers) that will supply their needs. The traditional business model was

The part of this model that applies to Zappos is the Business-2-Consumer market. The The infomediary model gathers information about the consumer and provides it to companies this is normally used in comparison websites but there could be a comparison section on the Zappos website for comaparing shoe prices and styles. The Merchant model is the most relevant model in terms of Zappos. The merchant modelis like traditionla business, where a wholesaler or retailer offers their products for sale. None of the other above models really apply specifically to

It should be a benefit to customers and it should allow a company to expand into new markets. It must also be hard for a company to replicate (unique). A new company that has just started identifies its core competencies and uses them for survival and growth. Zappos looked at the option of expansion internationally but it had “never favoured expansion outside north America”. Lin’s ideology was that the service wouldn’t be at the same high standard that they had established in America, and that an equivalent size market to the U.S. is the whole of Europe. The target market for Zappos is very broad and shoes are a necessity so there is no need for them to venture outside North America. Their target market is very broad as it can cater for men, women, children, sports and it now stocks items other than just shoes to target a wider audience. A Revenue model describes how a business generates revenue streams from its products and services. It is a key component of the business model as it identifies what product or service is created in order to earn revenues, and also the way in which the product/service will be