Business model

 

Industry characteristics

 

First, structured

 

The so-called business model is structured to divide the business activities of the enterprise into several parts, each part completes its own functions, and links the functions of each part through the business model. Everything has its own structure, just like a human body, with internal organs and responsibilities, even if it is an activity, such as a sports competition, it must be divided into registration, check-in, preliminaries, finals, awards, etc. If you can't structure the whole, these features are confused and you can't usually implement them. The requirement of structuring is that each component must have a clear function, which is not superfluous or uncontributable for the business activities of the enterprise. It is the basic task of business model theory to understand and understand a whole by structure, so that people have a tool for understanding and judging the overall function. In other words, the theory of business model is to fix the structure of business activities in order to Analyze the growth process, mechanism and effectiveness of the company.

 

Second, closed

 

Business activities can continue because they repeat the same business. Each repetition is a copy of the previous business activity. Only when the company can do this repetition shows that the company has entered the business cycle. The cycle is to link the structured business links, head and tail, and use the results of the previous business activities as the beginning of the second commercial activity. This property of the business model is called closedness. Closedness does not mean that commercial activities are a closed system. On the contrary, constantly absorbing elements and raw materials from the outside, investing in commercial activities and passing them outside the enterprise is the basic nature of the business model and forms an open system. Closed business activities refer to the benefits that will be passed outside the enterprise as a prerequisite for the next commercial activity. For example, an enterprise obtains profits through commercial activities, and profits are used by enterprises to invest in intangible assets of enterprises, thereby expanding the visibility of the company and gaining recognition from more customers, which becomes a prerequisite for further commercial activities.

The purpose of closure is to share the cost of building a business model. Before the cycle is formed, the company needs to carry out a series of explorations and bear the risk of exploration. Therefore, for this cycle, the enterprise has to pay a certain amount of cost, and once this cycle is stable, the enterprise can repeat this by repeating it many times. The cost is divided. It can also be seen that building a business model requires input costs, and the operation of the business model is to recycle this input. The more the business model is repeated, the greater the net profit of the business model, and the more economical the business model is, the faster and smoother the company will grow.

 

Third, participatory

 

Any business activity must complete the business where the business is located in the industrial chain, and the operation mode determined by this position is different in the industrial chain, the commercial content is different, and the business logic is different. Tuowei is the pioneer of the mobile animation business. It positions its business from a symbol provider between content and telecommunications services. It will provide specialized and symbolized content to mobile phone users to provide specialization for mobile communication operations. content. From the outside, the business model is a form of joining a certain industrial chain. Therefore, it must have a good embedding ability and form a special embedded incision at both ends of the industrial chain. In the upstream content, Tuowei first cooperated with Blue Cat to make the mature blue cat image mobile phone animated, and later adopted the mobile animation contest to find partners and provide a production platform for the partners to produce special symbols for mobile communication; It will maintain cooperation with Hunan Mobile to provide new content for its proliferation services.

 

Fourth, innovative

 

A business model is a brand new business logic whose important role is to bring technology or business into business, creating a whole new market. Technology entry into the market is defined by Schumpeter as an innovation activity. The first commercial introduction of technology is called technological innovation. It must be realized by means of a commercial form, which can be either market-oriented or brand new. The new form of business is called the business model; traditional technology and business, through new forms of business, can also generate new business, build new business models to gain new business and accelerate business growth. Under the network conditions, instant messaging technology used to be a relatively popular technology in the market. Under the support of the business model based on free chat business, Tencent realized the rapid growth of the enterprise. A business model is a type of market innovation and an innovation that can be adapted to a new technology or business, or it can be implemented independently.