Business Model

Business Model

A business model is a compact, simplified view of a business, designed for a holistic description and analysis of the entire system of interconnected business processes in a company.

In this review, we will mainly consider Business models that are used on the Internet.

Business models on the Internet are both simple and complex. A simple model is the concept of an online retailer – a company buys goods and uses online channels to sell them. According to a more complex model, large information portals work – they see many options for monetization (from selling ads to publishing paid articles), which requires an analysis of the sources of profit and their optimization in order to increase revenue.

In the current period of time, it can be stated that for online commerce not only unique business concepts were created, but also traditional ones were effectively optimized. Take, for example, an auction – one of the oldest forms of brokerage. This model has been greatly improved through concepts such as the principle of urgency and the effect of limitation. As a result, marketers managed to create an effective, gamified system that engages consumers in the bidding process and increases their readiness for high costs.

A more modern model that has developed over the past 20 years is SaaS (Software as a Service), a model in which the provider develops and optimizes the cloud application, providing the customer access to it via the Internet.

CAPEX can advise you and choose the most suitable model for doing business in Dubai, the UAE.

1. Brokerage business model
Used in B2B, B2C and C2C sectors. A business connects buyers and sellers and conducts transactions between them, for which it charges a certain amount of money (fixed rate or percentage of the transaction)

2. Advertising business model
This model is an extension of the traditional concept of the media – a business presents content and services to consumers, while broadcasting on-site customer advertising.

The advertising model works most efficiently either with the right choice of niche, or with large volumes of traffic.

3. Info-brokering
User data is of high value to businesses, and product information is interesting to consumers – information intermediaries sell valuable data to customers and companies.

4. Seller
Wholesalers and retailers of online goods and services.

5. Manufacturer
Under this model, the manufacturer independently sells its products on the network, thereby reducing distribution channels.

CAPEX will help you choose the most suitable model for doing business in Dubai, the UAE.