Business Model custom essay

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Questions to Answers
What business model does your chosen organization use?
Does it work for this organization? Is there a better model that should be used?
Analyze the business models

The business models
In my reading, I have come to understand that the subscription business model is a business model that has long been used by magazines companies and the like. Rather than sell products directly, more and more companies are selling monthly or yearly access to a product or service. This, in effect, converts a one-time sale of a product into a recurring sale of a service.
The Razor/Razorblade model has evolved to mean any business practice in which a company offers a one-time product – usually at little or no cost (see loss leader) – that is complemented by another product for which the consumer is required to make repeated purchases. Perhaps the most recent contemporary example of this practice that I have found involves internet companies giving away internet modem devices to customers and then charging those customers monthly subscription fees to use the internet modem.
The logic of the first mover model is that some business can obtain the market by being the first to take advantage of the need for a product or service.
Sometime the first mover miss the opportunity needed to advance to the next round of success in a business; therefore the second mover can review the mistakes of the first mover and take advantage of what the first mover missed out on.
Re-inventors in my beliefs are those CIOs and CTOs who have truly changed an industry, leading with their actions, or people who think outside the box.

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