What is the best business model today? Why?

Entrepreneurship and Business


Are we doing homework for you?

I suspect the "best" business model at the moment is the one where the users create or provide the content, and the company is an organizer and platform.

We've all seen this quote recently:

"Uber, the world’s largest taxi company, owns no vehicles.

"Facebook, the world’s most popular media owner, creates no content.

"Alibaba, the most valuable retailer, has no inventory.

"And Airbnb, the world’s largest accommodation provider, owns no real estate."

Without the costs of inventory or fixed assets beyond the platform, the company can concentrate fully on the profitable organization of *information*.

Is it the "best" model, though?

Depends. What are your priorities?

The "most profitable companies" in the world in 2014 are banks & investment, IT, oil, and telecom firms. Also a retail electronics manufacturer.

One of the top 5 is a state-owned company, though, and I would cross that off the list.

The rest look fairly traditional in structure.

Not necessarily like the "fastest growing" companies.

So is your priority fast growth or profit?

Or is it something else? Like an ego-driven "I want to employ the most people so I have the 'biggest' company"?

What is "best" is relative.

Answered 9 years ago

I do think shared economy is the best business model right now. By providing a mechanism to allow consumers sharing their resources, the business model will generate incomes for the innovators and consumers at the same time. Backend technology is extremely important in this business model.

Answered 9 years ago

Let me put it simply, “A business model describes how your company makes money”. To make money you need an effective business model. To discover the best business model, try to understand the business models of the best companies. Take for instance Alibaba. So, what is Alibaba’s secret sauce? Alibaba Group has no inventory. Alibaba`s focus is to connect buyers with sellers. The value of Alibaba lies in the software interface, not in the products. Similarly try to find out the “secret sauce” of various companies like Airbnb, Hilti, IKEA etc. and choose the best one that is fit for your company.
Besides if you do have any questions give me a call:

Answered 3 years ago

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