businessmodeldesign.docx

Running head: SUBCRIPTION BUSINESS MODEL 1

SUBCRIPTION BUSINESS MODEL 4

BUSINESS MODEL DESIGN
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model design can be basically defined as the process or the activity of designing a business model of a company. A business model design is usually considered to being part and parcel of a business development and the business strategy process and it usually does involve design methods. A business model are usually important not only for already established businesses but also to the new established business. This specifically helps in reducing cost in a way that they help the companies that use this to invest, bring in talent and even motivate staff and management (Cosenz, 2017). Therefore the main thing that a business model design will do in making sure that the cost that is incurred in the process of scaling up is that the investments that the design will attract will help in reducing the cost that will be incurred in the process of scaling up. The graph below illustrates how a business that uses a business model helps in reducing cost.

The investments that do come this will help in making sure that the cost that might be incurred in the process is covered up by the investors who do come into the business after they have been attracted by the business model of the company. (Kamon-ard, 2020)
A cell phone monthly subscription business model is basically the process by which a company uses or subscribes to a service provider in a way that the company makes calls throughout the month and pays the accumulated money and pays it at the end of the month. Also a monthly subscription model usually does help in making sure that the company that uses it capitalizes on the value of customer relationships (Kamon-ard, 2020). Therefore using these subscriptions, the company usually ends up becoming more valuable and this comes as a result of the company using the product more frequently. This service subscription is usually attributed to reducing the cost that a company might be using and therefore making it cheaper to operate using this rather than making calls on a daily basis and paying the same daily. Some of the companies that use cell phone monthly subscriptions include Netflix, Spotify and Amazon. The table below shows the difference in cost that the companies that use cell phone monthly subscription and the companies that do not use the monthly cellphone description have.

Companies that use cellphone subscription

Companies that do not use cellphone subscription

Profits

70%

10%

Loss

5%

60%

There many advantages that do come with this and is important to making sure that the company does have reduced cost.

References

Cosenz, F. (2017). Supporting start-up business model design through system dynamics modelling. Management Decision. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/MD-06-2016-0395/full/html?casa_token=MxWW5uJ0QnYAAAAA:fLqEbUryqJgiJDL6Q0-VfO02F55xMfyGIQnMQR7kHE4JhyGUuKKZTJ6QffireKvvgEm5VSPbfrna00kZJpy4txc3WJ9kmN-Qjv9F5Nui__5nDl4junkW

Kamon-ard, S. (2020). Factors Influencing Bangkok-based Consumers’ Purchase Intention of Dairy Products in a Subscription Model (Doctoral dissertation, Mahidol University). Retrieved from: https://archive.cm.mahidol.ac.th/handle/123456789/3979

different companies That have been Implementing Models at Different Levels

Series 1 Category 1 Category 2 Category 3 0 1 2 Series 2 Category 1 Category 2 Category 3 0 2 3 Column1 Category 1 Category 2 Category 3 0 4 6

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