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2.3.1.2 Business Model—Traditional
ОглавлениеIn this type of model the consumers are physically present for purchasing the goods from the market. It is just like buying products from the local store. This model is a purely centralized one which is controlled by some regulators. Different businesses exist which are centralized by different regulators, controlled and managed by the authorities which includes:
1 a. The organization,
2 b. The stakeholder or owners,
3 c. The workers, and
4 d. The consumers.
Traditional business model are divided into the following types:
1 Manufacturer
2 Distributor
3 Need of customers fulfilled
4 Franchise.
1 ManufacturersThey are the ones who make products from the raw materials; they can also assemble the components to make the products. Common examples are computer & automobiles. This model can directly sell products to the customers, i.e., B2C or they can outsource to other businesses, i.e., B2B also. For example, dye manufacturers sell to the retailers which then sell them to the customers.
2 DistributorsThe organization with the distributor model purchases the products directly from the manufacturers and they supply to the wholesalers then to retailers or to the customers. The main responsibility of this model is to set the value which in return provides profit to the company. Adding on to that, it makes marketing strategies which can bring more sales of the products. In general, its role is an inter-mediator between the manufacturer and the local users.
3 Need of Customers FulfilledThe companies which are having retailer business model have the function to sell products directly from distributors to the customers. Retailers can supply products both via online and offline mode. Online retailers like those selling products on e-commerce website include Amazon, Flipkart, Myntra & Shopclues. Offline retailers are similar to those departmental stores, local shops which exit physically.
4 FranchiseThis model comprises of other business models which are mentioned above. The purchaser of franchise is called franchisee for e.g. Pizza Hut.A traditional business model provides services or products and gains profit from them. Consumers purchase the product or service at the recommended rate. This price is set correspondingly and it also has the description about the earnings and other expenditures aroused by the business while providing the goods or services.