In the business field, growth is paramount else one will suffer loses and stiff competition from other entrepreneurs. The models that a business use should change with time so that they accommodate the growth of the current business. Other factors that may lead to the change in the business model is if the business strategy changes.
A business model is a technique or the method used by an organization so that they can impress their clients but at the same time maximizing their profits. The models comprise of elements for delivering services and products to the customers. These elements may include promotion methods, ways of distribution, required resources, ways of generating profits and revenues, types of clients served and how the clients use the products.
The alternative one is online delivery, two is collective business structure, and three is service. The corporate level strategy involves the decision-making strategies which affects the whole organization. In online delivery, it is a model that has been in the high use of late. Regarding growth, it reaches too many people globally. It is known that the world is becoming a global village, everybody is connected to the World Wide Web or network. It is done through social media platforms like Facebook and LinkedIn. There are many online entrepreneurs in the current generation, and from the research, the online business they run is stable and has fewer threats. Regarding cost analysis of the model, it is relatively cheap. Reasons are a lump sum, but some include less workforce hence fewer employees which result in fewer expenses used. There is no real marketing in this model; it’s through the internet which is cheaper.
The number two alternative is the collective business structure. This strategy involves bringing people who do similar businesses so that they can share information, have a pool of resources and also bring up some benefits like loans and credits. The notable companies based on these models include cooperatives, trade associations, and franchises. The unions as an example, the members have shared, selling the same commodity, dividing the dividends, having a common market and being led by a committee. Regarding growth and stability, this model lasts for long since many people who have shared interest makes decisions. The model always has got capital since this is not a one-person business.
The third alternative is the service model. It is one of the industry which has developed in the world. Some of the activities include banking, insurance, transportation and others. It is a more complicated model since the business must satisfy the customer to retain him/her to maximize profits. If the company gives quality services, then their growth and stability increases and vice versa is also true. Service industry gets higher profits because they don’t deal with tangible products which have many limitations like expiry dates.