Business Models and Its Applicability for Indian Public Sector Companies

A business model (also called a design firm) is the mechanism by which a company intends to generate revenues and profits. Is a summary of how a company plans to serve its customers. It involves both strategy and execution. It’s all:
How to select its customers

What defines and differentiates its product offerings

How to create value for its clients

How to acquire and maintain customers

How will the market (promotion strategy and distribution strategy)

How do you define the tasks to be performed

How do I configure its resources

How is the profit

Business models of new technologies into economic value. A business model is based on a multitude of business issues, including economics, entrepreneurship, finance, operations and marketing strategy.

The major components of business model are

Value proposition

Market Segment

Structure of the Value Chain

Generating ad revenue margin

Position in value network

Competitive Strategy

Types of Business Model:

The subscription business model

The razor and blades business model (bait and hook)

The pyramid scheme business model

The multi-level marketing business model

The network effects business model

The monopolistic business model

The cut of the mediation model

The auction business model

The business model of online auctions

Bricks and clicks business model

Loyalty business models

Collective business models

The industrialization of services business model

The business model servitization products

The low-cost airline business model

The business model for online content

Applicability of the appropriate business model for India PSU

Business Model Monopoly – It’s almost a situation where one company is the sole supplier of a product or service. PSU India is likely to command such a situation of certain capital-intensive high-end products, although the global economy may throw up challenges.

Pricing strategy should be to set prices when the marginal cost must be at least equal to marginal revenue. Reduced operating costs under all management techniques to maximize profit.

It is also often argued that monopolies tend to be less efficient and innovative over time, becoming “complacent giants” because they do not have to be efficient or innovative to compete in the market. Regulations and the creation of company’s business may have limited tool in arresting the situation.

Razor and blades business model or products linked model “works by selling a master product at a subsidized price, and making a high profit margin in Service” consumables “/ etc which are essential Spares to use the master product. PSU India has the power to use this business model that has to compete with international players.

Loyalty is a business model business model used in strategic management that are used in the company’s resources to enhance customer loyalty in the expectation that the objectives were met or exceeded. That includes support for all customers are the main requirements for this type of model. PSU India are better prepared in terms of infrastructure to use that model.

Model of service quality. Here, customer satisfaction is primarily based on recent experience of a product or service. This assessment depends on prior expectations of overall quality compared to actual results received. If recent experience exceeds expectations, customer satisfaction can be high. Customer satisfaction can also be high, even with the mediocre performance of the customer quality expectations are low, or if the performance provides value (ie it is a low price to reflect the poor quality). Similarly, a customer can be satisfied with the service encounter and still perceive the overall quality to be good. This occurs when a quality service is priced too high and the transaction provides little value. An appropriate model for India PSUss.

Outsourcing Considerations: – Looking at the fact that 73% of the global processes of some major subcontractors or other PSU India “business strategy should include the outsourcing philosophy scale mainly due to: –

Ø Focus on areas / skills.

Ø Access to world class capabilities, rather than possessing them.

Ø The risks can be shared in terms of capital investment, etc.

Ø Reduction in operating costs.

Ø Resources not available internally. Companies outsource because they do not have access to resources within the company. Sometimes this is due to the expansion or reorganization. It may also be due to changing business requirements.

Ø Accelerate the restructuring of benefits. Outsourcing is often a byproduct of another powerful management tool, process re-engineering business. It allows an organization to undertake some of the immediate benefits of this process.

Ø The infusion of cash. Outsourcing often involves the transfer of the customer to the supplier, such as equipment, facilities, licenses and leases.