Methodology business consulting. Business model.The business model is a cash flow generator, that is, simply, a mechanism through which companies make money. Most often, the view of the public about how certain companies are making money, is very different from how it actually happens. Here are a few examples of these differences.

Hewlett-Packard . Initially, HP made printers. Then the main cash flow began to bring the cartridges.

The gourmet restaurants. Itself high the kitchen is not very profitable. But it helps to sell expensive and cost-effective wine. Wine brings the main cash flow. Fine dining can be called a business selling expensive wine.

Google. Google provides a wealth of services completely free of charge – the search engine, mail, calendar, social network and more. But Google is not making money on providing these services. Google is making money on Internet advertising. Google also plans to make a fundamentally different operating system Chrome OS. Chrome OS is a web browser that allows you to use office applications via the Internet, without storing them on your hard drive. Instead of buying office applications, Google prompts the user to rent them in the form of web services.

So, Google’s business can be divided into two parts. One (free) allows Google to create an army loyal customers. Other (paid) Google provides a steady cash flow.

This business model is different from the business models used by Microsoft and Redhat Linux.

Microsoft . Microsoft sells software, application software and provides free maintenance.

Redhat Linux allows you to use the operating system for free, but takes money for technical support.

Britannica . When Britannica was desktop encyclopedia every American. The company earned on the sale of printed encyclopedias. With the advent of the Internet, the company provides data through the world wide web. The company was transformed in the online activities, as the business model evolved from the model of “making” money on the books, to model provide pay information to users online. And Britannica sells advertising space on its website…

Sell or rent cars. Imagine that You have the opportunity every day to drive a new car. And the brand of the car each day may vary according to Your desire there is no need to pay for insurance, and to bear the risks of damage to cars. And most importantly – the cost of such “use” below cost “of ownership.” Sounds great. This is a fundamentally different business model for the production of cars, and who can deny that it will generate less cash flow in the company? The client is given a new value proposition, and the manufacturer saves on “mass” maintenance and insurance. This model has already been launched by several manufacturers. How it will be viable.

The energy industry?

Speaking very abstractly, we can assume that the business model of the energy sector in the future (in 50-100 years) will be associated not only with resources but with technology.

Once upon a time resources were sold without any processing (e.g., coal), it was the most simple version of the model.

After a couple of centuries, the model was transformed to the sale of services (heat, electricity), however, the same resource has remained a Central element of the model.

Currently, many countries, especially Germany, Italy, Czech Republic, Japan, USA, are actively implementing the technology of renewable energy.

Thus, in this industry may be switched from the “resource” model to model “technology”.

And how do You see the business model of Your company? What the company earns money? What will make money?

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Eugene Thinkin,

MFA Consulting, Business analyst


Facebook. Facebook makes money on providing a platform for communication on the Internet. Facebook takes money for advertising, commissions from developers of games and other programs.

admin (Alexander Kehl) says

And another beautiful business model that Starbucks uses. Initially, Starbucks was selling coffee beans. Then drinks based on coffee. Now sells a “mood” that every person can “touch” in Starbuks coffee shops.

admin (Alexander Kehl) says

Very many online businesses are using the following model: provide for free some useful information through the Internet (blogs, websites, a page in facebook) in exchange for email potential buyers. That is, site visitors free of charge useful information on a topic of interest. All that is required of him – leave your email address. Then through these email sells goods and services related to the topic.

For example, it is possible to blog about how to lose weight. In the blog to give a really useful audio and video tips. Once you have created a large list of potential customers and they will have a trust relationship, they are encouraged to buy the equipment for exercise, the right foods, medicines, more advanced information, off-line and on-line training etc.

Moreover, it does not necessarily have to have these products and services: you can sell to your subscribers, other people’s products and services by charging a Commission for this. That is a blog about losing weight is just a means to collect email address of potential customers. Money brings the LIST of SUBSCRIBERS.

Eugene says