BUSINESS MODEL

This was the material for my second meeting in Online Marketing class. The topic was Business Model. Before we get to the types of business model we have to know what is the meaning of business model itself. So, to put it briefly, business model is a method a company use to run their business, to keep the business sustainable. and to reach their ultimate goals.

There are 9 types of business models according to Professor Michael Rappa :

  1. Brokerage Model : brings sellers and buyers together
  2. Advertising Model : delivers message through content
  3. Infomediary Model : Selling data or information
  4. Merchant Model : provides services or goods
  5. Manufacturer (Direct) Model : reaches customers directly
  6. Affiliate Model : offering incentives
  7. Community Model : connects people
  8. Subscription Model : delivering service with set fee
  9. Utility Model : delivers content (pay as you go)

There are also different types of business :

  1. B2C : Business to Consumer
  2. B2B : Business to Business
  3. B2B2C : Business to Business to Consumer

In this material I also learnt to observe some companies’ business model. There is this technique called the business model canvas. This canvas allows us to map out a business by using 9 elements, which are :

  1. Customer segments : the target market
  2. Value proposition : what products or service are offered by the company
  3. Channel : The platform/place where the company can reach its customer
  4. Customer relationship : how the company keep in touch with their customers
  5. Revenue Streams : the source of income of the company
  6. Key Resources : the resources needed to keep the production running
  7. Key Activities : what needs to be done to keep the company sustainable
  8. Key Partnership : other parties that support the company
  9. Cost Structure : what needs to be paid to keep the company running

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After these 9 elements were explained, we were given a discussion topic in groups. My group got FMCG business. We had to map out the business model of one company from FMCG business. We chose PT. Indofood Sukses Makmur Tbk. for our discussion. We came to conclusion for the discussion and here is our version of their business model :

  1. Customer Segments : Retail Market, housewives, Convenient Stores
  2. Value Proposition : instant food, processed food, dairy product, edible oil, flour.
  3. Channel : Large Scale Distribution
  4. Customer Relationship : Call Center, Ads
  5. Revenue Streams : Sales
  6. Key Resources : Agri Business, Packaging
  7. Key Activites : Sales, Production, Promotion
  8. Key Partners : Bogasari, China Minzhong food
  9. Cost Structure : Marketing, Production, Distribution, Packaging

Those were all we did for the second meeting of Online Marketing class. I’m really looking forward for our third meeting to learn more. Till then, See you!!

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