TYPES OF BUSINESSES

College of Engineering
PAF–KIET
Various types of Business:
Bricks and clicks business model: Business model
by which a company integrates both offline (bricks)
and online (clicks) presences. Eg. Store allows the
user to order products online as well.
Collective business models: Business system,
typically composed of relatively large numbers
of businesses, which pools resources, shares
information or provides other benefits. Eg.,
a science park or high-tech campus provides shared
resources (reception, lab facilities, auditorium…) to
the firms located on its premises.
 Cutting out the middleman model:
The removal of intermediaries in a supply chain. Instead of
going through traditional distribution channels
(distributor, wholesaler, broker, or agent, retail),
companies may now deal with every customer directly,
for example via the Internet or limiting nodes.
 Online business:

Website / Internet based business – eg: e-commerce, cloud

services, …
 Value-added reseller model
Value Added Reseller is a model where a business makes
something which is resold by other businesses but with
modifications which add value to the original product or
service. These modifications or additions are mostly
industry specific in nature and are essential for the
distribution. It is one of the latest collaborative business
models which can help in faster development cycles and is
adopted by many Technology companies especially
software. Eg. Autobar Private limited
Franchise
 Franchising is the practice of using another firm's

successful business model. For the franchisor, the

franchise is an alternative to building 'chain stores'
to distribute goods and avoid investment and
liability over a chain. The franchisor's success is
the success of the franchisees. The franchisee is
said to have a greater incentive than a direct
employee because he or she has a direct stake in
the business.
 Uberization
Uberization – UTILIZE THE UNDERUTILIZE RESOURCES
WITH MINIMUM OPERATIONAL COST

The term Uberization defines a transition to an operational

model which enables economic agents to exchange
underutilized capacity of existing assets or human resources
with close to zero transaction cost.

The model has very different operating costs compared to a

traditional business and usually very low.

Services may be offered on demand through direct contact

between a customer and a supplier, usually via mobile
technology.
Fee in, free out
 Business model which works by charging the

first client a fee for a service, while offering

that service free of charge to subsequent
clients. Eg. Digitization service.

 Sourcing Business Model: Indenter, agent …

 Freemium business model:
Business model that works by offering basic Web
services, or a basic downloadable digital product, for
free, while charging a premium for advanced or
special features. Eg. Pay what you can (PWYC) is
a non-profit or for-profit business model which does
not depend on set prices for its goods, but instead
asks customers to pay what they feel the product or
service is worth to them. It is often used as a
promotional tactic, gift economy, cross-subsidization,
but can also be the regular method of doing business.
Learning outcome:
 Various business models
 Business Planning
 Linking various activities
 Business minded, thought processing