The Question: What is a ‘business model’?
What is the business model for a grocery store, and what are the revenue streams?
car truck dealership(ford)
movie theater(cineplex)
airline (southwest)
A business model is a plan to run the operations of a company with some intended goals. A business model supports certain goals, objectives, mission and vision. It's a plan to operationalize a concept. In a nutshell, it's a plan to convert the concept into a business with sustained streams of revenues.
Grocery store: The business model to is source the goods from farmers / mills / manufacturing units and make the same available to the doorsteps of the consumers. The revenue streams are sale of items of daily consumption to the consumers.
Car truck dealership: the business model is to deal in the sale of car truck. Depending upon your sales, you source the car truck from the central warehouse as a dealer and provide to the customers. You are not involved in the manufacturing of the car truck. The revenue stream is the dealership fees you get from the manufacturer.
Movie theatre: The business model is to sources the content (movies) from the production houses and then show them to your customers. The revenue stream comprises of sale of movie tickets primarily along with sale of snacks and beverages.
Airline (South west): The business model is to transport passengers and cargo from one place to another. The revenue streams include sale of tickets to passengers, cargo shipment charges, sales of snacks and beverages.
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