Question

Explain the different business models of with respect to customers and vendors with examples?

Answer 1

Answer:

Your prototype might be ready for presenting to investors or licensees but it is worth nothing if you do not have a business model in place. How are you going to explain to anyone what your product does or intends to do and how it is going to create value for customers as well as the company?

You need a business model for that.

It is a term people frequently use but most of them don’t truly understand what it means. Michael Lewis, the author of The New, New Thing: A Silicon Valley Story, says that a business model is a “term of art”. Most people know it when they see it but cannot accurately describe it.

So, what exactly is a business model and what are its components?