The Essential of an Enterprise: Business Model

Experts used the term business models to express the context of data and modeling. In an enterprise, a business model means the process, task, and communication needed to conduct a regular business operation. The business plan serves as the master plan for an enterprise.

For an entrepreneur, the business model describes the process for the enterprise to generate income. Income comes from products offered in the market, and part of the generated revenue pays for the cost of running the business. A successful entrepreneur generated a personal income.

A successful enterprise depends on a reliable business model producing products that meet the needs of the target customers. The ability of the entrepreneurs to generate value for the customers to be willing to pay and accumulate positive experience from consuming the product serves as the key to sustaining the business.

At any point in the business, an entrepreneur identifies the various costs, whether directly or indirectly, such as the cost of raw materials, wages and salaries, and interest. These are expenses that businesses incurred to continue production. The company spends money to generate more money. All of the processes of spending money and generating income depends on the business model.

Earlier, the core of any business model is the business value proposition, which caters to the need of a specific customer. The ability of the business to differentiate their product from competitors is part of the value proposition. In other words, the value proposition is all the tangible or intangible gain the business offer to the customers.

There are three components to the market participation dimension. Foremost it identifies the target market the business selected to serve. Second, the distribution methods used to reach the target market and lastly, the promotion and advertisement strategy employed to reach the target customers.

Currently, businesses there are numerous coexisting business models applied in different industries. The use of innovative business models and targeting the market segment improve the competitive business advantage. For instance, banking industries, entertainment, or travel industries used q unique business model to compete against other companies. In banking industries, there are development banks, investment banks, and rural banks. They used a different business model that recommends a selective approach to attain a competitive advantage.

Banco de Oro is the fastest growing bank in the country, described as a bank that offers convenience to the customer. BDO banking hours do not conform to the traditional 9:00 AM to 3:00 PM. The bank mostly located in SM Malls offered banking services until early evening all days to the year. Also, BDO offers online money transfer to popular pawnshops. Moreover, as the first bank to forge a partnership with international money transfer, meet the needs of the OFWs and their families. Thus the BDO model differs from other universal banks.

All business has an exclusive business model. Similar to a person's fingerprint, no two business models are precisely the same. A business model that was able to secure the market by creating a value proposition to its customers has a higher chance of business sustainability.