Meaning of business model | Babel Free

Definitions

The particular way in which a business ensures that it generates income, one that includes the choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

Equivalents

Examples

“The venture capitalist Chris Dixon told me, “They [YC] created the greatest business model of all time. For basically no money[…]they get seven per cent of a lot of the best startups in Silicon Valley!””

“Since the launch early last year of […] two Silicon Valley start-ups offering free education through MOOCs, massive open online courses, the ivory towers of academia have been shaken to their foundations. University brands built in some cases over centuries have been forced to contemplate the possibility that information technology will rapidly make their existing business model obsolete.”

“Between 1997 and 2006, ownership of Glenfeshie passed between three Danish businessmen – and with it a self-destructive business model. Only by maintaining very high numbers of livestock could the flow of fee-paying deerstalkers armed with rifles be ensured, but because of the rising cost of gamekeepers and estate upkeep, Glenfeshie’s sporting operations were still making a loss.”

“The typical business model relies on a line operating intensively from March or April through to September or October, before shutting down during the winter months - at which point essential repairs and maintenance can take place using income accrued during the busy summer months, ahead of the cycle starting over again.”

CEFR level