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Classification of business models
There are different classifications of business models and are distinguished in 9 basic categories
❖ Brokerage model
❖ Advertising model
❖ Information model
❖ Commercial model
❖ Manufacturer model
❖ Affiliate model
❖ Community model
❖ Registration model
❖ Utility model
P. Timmers (1998) plays an important role in the development of business models. Distinguish 11 types of business models, which are mainly typical for online companies:
- Online store model
- Electronic procurement model
- Online auction model
- E-shopping center model
- Tertiary sector market model
- Virtual communities template
- Value chain model
- Collaboration platform model
Value chain service model
- Stock market information standard
- Trust services model
L.M. Applegate (2001) proposed four main categories of business models (Table 1).
Table 1. Typology of business models based on L.M. Applegate
| Basic business models categories | Models description | Models details |
|---|---|---|
| Focused distributor model |
Provides access to products and services in a branch or in a selected market |
Detailed sales model, tertiary sector market, accumulator model, information brokerage model, exchange model |
| Gateway model | Horizontal gate operation, related model | |
| Producer model |
Allows the sale of products and accessories directly from the manufacturer |
Producer model, service provider model, educator consultant, provider models |
| Infrastructure provider models |
It enables customers to receive online services |
The horizontal portal model (electronic service provider) and vertical model |
Based on L.M. Applegate ( 2001)
Table 2. Business models according to P.Weill and M. R. Vitale
| Business model name | Business model description |
|---|---|
| Content provider |
Allows access to content (information, products and digital services) through stockbrokers |
| Direct to the customer | Provides products and services directly to customers, without brokers |
| Full service provider |
Meets customer needs in a specific area (eg finance, insurance) directly from providers and brokers |
| Mediator | Connects consumers and providers by gathering customer information. |
| Shared infrastructure |
Brings together various companies through access to the common IT infrastructure, which offers services that are not available in the market |
| Net value of integrator | Coordinates the transfer of information and products to brokers and clients |
| Virtual community |
Connects a group of people with similar interests to a virtual community, receiving rewards from members |
| Business Administration | It connects all services and allows access through a contact point |
Source: Based on P.Weill and M. R. Vitale
The proposed classification is the basis for all e-business models. In addition, they emphasize that models can be configured differently in order to develop a business model that best adapts to the needs of a business.
C. Baden-Fuller and V. Mangematin (2013) proposed 4 types of business models (Table 3).
Table 3. Business model classification based on C. Baden-Fuller and V. Mangematin
| Business model name | Business model description |
|---|---|
| Franchising template (fast food chain) |
A simple model aimed at different customers, in which they perceive strong hierarchical ties between different people. |
| Strategic model for boutique consultant |
A simple model is addressed only to selected customers. There is a connection between a business and a customer with no extra issues in the value chain. |
| Newspaper model |
Bilateral model, which concerns two types of customers - consumers and advertisers, representing different environments and different areas of activity. Connection to the network of hierarchical values |
| Web search template |
Bilateral model, which concerns two types of customers - consumers and advertisers, representing different environments and different areas of activity. Connection to the network of hierarchical values |
Resources:
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Applegate, L.M. (2001). E-Business Models: Making Sense of the Internet Business Landscape, [in:] G. Dickson & G. DeSanctis (eds.), Information Technology and the Future Enterprise, New Models for Managers, Prentice Hall, Upper Saddle River NJ.
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Baden-Fuller C., Mangematin V. (2013). Business Models: A Challenging Agenda, Strategic Organization 11(4) 418-427.
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Timmers P. (1998). Business Models for Electronic Markets. European Commission, Directorate-General.
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Weill P., Vitale M. R. (2001). Place to Space – Migrating to eBusiness Models, Harvard Business School Press, Boston, MA.
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