The best business model starts from the profit point
How important is the business model? Certainly many entrepreneurs have seriously thought about this issue. Among them, the most classic answer is the description of Peter Drucker, the master of management. "The competition between enterprises today is not the competition between products, but the competition between business models."
So, what kind of business model is competitive, or what is the best business model? “The criterion for measuring an optimal business model is whether or not this business model has more profitable points. In the current market, the more profitable points are, the more likely it is to profit, and the more ways to protect existing profit streams. Lin Weixian, the chairman of the "Best Business Model" and the chairman of the Practical Education Group, said to the "China United Daily" that "this is also the starting point for building a best business model, but these profit points cannot be formed at once." It needs to have a platform construction process, which is what the saying goes, 'first sell more wells and sell water'."
Profit first after the platform "When your platform is big enough, all the money will come back to you." Lin Weixian believes that QQ is the same. QQ's main business income is actually very low, but some of its marginal projects can bring it more than 65% of revenue. Now that QQ is a company with a market value of 300 billion Hong Kong dollars, it comes from its platform is large enough and there are enough customers locked in, so it has created amazing value behind. In contrast, the company has a big "blood" in the lock of each customer.
Mengniu and Yili went out to sell a bottle of milk, and a Swedish company called ** would be very happy. why? Because the carton packs and sterile papers used by Mengniu and Yiwu are manufactured by the Swedish company.
Why Mengniu and Yili must use sterile paper made by the Swedish company? Lin Weixian believes that the reason is very simple, because ** company takes the initiative to consider its customers. When Mengniu started its business, it had only a few million yuan in funds. It was impossible to buy a milk-filling filling machine like the one used by the Swedish company. Because a piece of equipment costs several million yuan, Mengniu could not afford it. . "I'll help you with everything," said the Swedish ** company to Mengniu. "I'll give you a plan. Assuming that the equipment is worth 3 million yuan, then I will provide you with the machine. You only pay 20%, that is, 600,000 yuan. Yes, the remaining 2.4 million yuan, which is returned in 4 years, is still 20% a year, which is equivalent to 600,000 yuan a year, but if you purchase it from me on the aseptic wrapping paper used in the next 4 years. If it exceeds a certain number of words, then I will take away the money from the 20% of the machines that you should return each year. That is to say, this equipment is basically given to Mengniu. Can Mengniu be reluctant to use Swedish ** company equipment when it is just starting a business and when funds are tight?
In Lin Weixian's view, the Swedish company is very clever. The device has a patent for a bar code filling machine. This is a kind of technology, and this technology can make it impossible for any other company or any other brand of packaging paper to enter this company. machine. In other words, if you buy a company's machine, you will need to buy its paper. Otherwise, if you use someone else's paper, you will get stuck when you enter and you will not be able to feed milk. So ** companies rely on this unique technology to protect its profit flow. Its profit flow guarantees that it can of course provide customers with more favorable policies.
However, to avoid the spoils of latecomers, when **commercial competitor Cambria also entered the industry and adopted the same business model, the company immediately changed its model and changed the rules of the game because it is a pioneer and has this ability. ** The company has also used a "killer" at any cost - buy a paper delivery machine, the machine does not have a dime, as long as you buy more than a certain amount of paper, the machine will give you away.
**Why is the company willing to do this? Lin Weixian said that from the sales report of Yili Company, it can be seen that 40% of the sales revenue of Yili Company comes from wrapping paper. This shows that the most profitable thing is not the one that can only be sold once, but Use wrapping paper every day. "So the company is willing to help dairy companies such as Mengniu and Yili, because these companies will grow, it will bring greater profits to the company." Lin Weixian said that with the rapid growth of China's dairy industry in recent years, Sweden ** The company also followed a growth rate of 44%. We must know that the annual growth rate is 44%. According to the compound interest effect, it will become several tens of times the growth rate in the next few years. This is the most critical thing.
Profit Point Design When the business models of various companies in the world are changing, are you changing together?
In Lin Weixian's view, the business model is not static, and one of the best business models is to constantly correct it as the market changes. For example, most mobile phones now have a lot of software to download. A lot of software is to sell money. Take human resources management software discus as an example. The previous one sold 60,000 megabytes, and now it is completely free on the Internet and mobile phones, allowing people to download freely. Readers can either download the Traditional Chinese version, or download the simplified Chinese version, or download the English version. In short, casual readers download, manufacturers do not receive a dime, charge is the cost of testing after the software download.
"Maybe some people feel that this is a forced move, but from the game between Nintendo and Sony, this helpless move is more effective." Lin Weixian said.
In the 1980s, Nintendo was the overlord of the console market and developed a number of popular games around the world, such as Mario Brothers and King Kong. By 1989, Nintendo consoles occupied 90% of the U.S. market and 95% of Japan's market. Basically monopolize the game industry.
There are two kinds of games that are run on Nintendo consoles: one is developed by oneself and the other is authorized by a third party. Third-party games that want to run on Nintendo's game consoles must pay Nintendo a certain amount of "rights money," and Nintendo imposes more stringent conditions on third parties. For example, it must pass Nintendo's “Quality Seal†certification. Only 5 games can be developed each year, and the first order quantity must be 20,000 sets. In addition to the “rights moneyâ€, a “game cartridge production fee†of US$14 is charged, and the production cost of the cassette is only US$4. Only this one can make Nintendo earn 10 US dollars.
The latecomers, Sony, on the contrary, used the world's leading position in display technology, audio, and digital technology. Sony began to apply these technologies to game consoles to produce powerful game consoles and fully introduce third parties. Game production. In the life cycle of the Sony PS machine, Sony received more than 1,400 games. By the end of 2004, Sony had occupied 68% of the game console market share. Each Sony sells a PS and PS2, it will lose about 37 US dollars, but Sony mainly rely on the royalties paid by third parties to make money, for each sale of a PS and PS2 game, the third party will have to pay Sony to 7-8 US dollars . The more games a player buys, the more Sony naturally earns.
Although Nintendo is the leader of the game console, it is not positioned to take care of the interests of the third party at the bottom of the pyramid. As a result, it quickly lost its status as the boss and was replaced by Sony. "So, in the customer's positioning, the bottom part of the pyramid is always the most important." Lin Weixian said that if the value of the entire customer has changed, the company has not followed the change, then the business of the business will be harder and harder.
So, what kind of business model is competitive, or what is the best business model? “The criterion for measuring an optimal business model is whether or not this business model has more profitable points. In the current market, the more profitable points are, the more likely it is to profit, and the more ways to protect existing profit streams. Lin Weixian, the chairman of the "Best Business Model" and the chairman of the Practical Education Group, said to the "China United Daily" that "this is also the starting point for building a best business model, but these profit points cannot be formed at once." It needs to have a platform construction process, which is what the saying goes, 'first sell more wells and sell water'."
Profit first after the platform "When your platform is big enough, all the money will come back to you." Lin Weixian believes that QQ is the same. QQ's main business income is actually very low, but some of its marginal projects can bring it more than 65% of revenue. Now that QQ is a company with a market value of 300 billion Hong Kong dollars, it comes from its platform is large enough and there are enough customers locked in, so it has created amazing value behind. In contrast, the company has a big "blood" in the lock of each customer.
Mengniu and Yili went out to sell a bottle of milk, and a Swedish company called ** would be very happy. why? Because the carton packs and sterile papers used by Mengniu and Yiwu are manufactured by the Swedish company.
Why Mengniu and Yili must use sterile paper made by the Swedish company? Lin Weixian believes that the reason is very simple, because ** company takes the initiative to consider its customers. When Mengniu started its business, it had only a few million yuan in funds. It was impossible to buy a milk-filling filling machine like the one used by the Swedish company. Because a piece of equipment costs several million yuan, Mengniu could not afford it. . "I'll help you with everything," said the Swedish ** company to Mengniu. "I'll give you a plan. Assuming that the equipment is worth 3 million yuan, then I will provide you with the machine. You only pay 20%, that is, 600,000 yuan. Yes, the remaining 2.4 million yuan, which is returned in 4 years, is still 20% a year, which is equivalent to 600,000 yuan a year, but if you purchase it from me on the aseptic wrapping paper used in the next 4 years. If it exceeds a certain number of words, then I will take away the money from the 20% of the machines that you should return each year. That is to say, this equipment is basically given to Mengniu. Can Mengniu be reluctant to use Swedish ** company equipment when it is just starting a business and when funds are tight?
In Lin Weixian's view, the Swedish company is very clever. The device has a patent for a bar code filling machine. This is a kind of technology, and this technology can make it impossible for any other company or any other brand of packaging paper to enter this company. machine. In other words, if you buy a company's machine, you will need to buy its paper. Otherwise, if you use someone else's paper, you will get stuck when you enter and you will not be able to feed milk. So ** companies rely on this unique technology to protect its profit flow. Its profit flow guarantees that it can of course provide customers with more favorable policies.
However, to avoid the spoils of latecomers, when **commercial competitor Cambria also entered the industry and adopted the same business model, the company immediately changed its model and changed the rules of the game because it is a pioneer and has this ability. ** The company has also used a "killer" at any cost - buy a paper delivery machine, the machine does not have a dime, as long as you buy more than a certain amount of paper, the machine will give you away.
**Why is the company willing to do this? Lin Weixian said that from the sales report of Yili Company, it can be seen that 40% of the sales revenue of Yili Company comes from wrapping paper. This shows that the most profitable thing is not the one that can only be sold once, but Use wrapping paper every day. "So the company is willing to help dairy companies such as Mengniu and Yili, because these companies will grow, it will bring greater profits to the company." Lin Weixian said that with the rapid growth of China's dairy industry in recent years, Sweden ** The company also followed a growth rate of 44%. We must know that the annual growth rate is 44%. According to the compound interest effect, it will become several tens of times the growth rate in the next few years. This is the most critical thing.
Profit Point Design When the business models of various companies in the world are changing, are you changing together?
In Lin Weixian's view, the business model is not static, and one of the best business models is to constantly correct it as the market changes. For example, most mobile phones now have a lot of software to download. A lot of software is to sell money. Take human resources management software discus as an example. The previous one sold 60,000 megabytes, and now it is completely free on the Internet and mobile phones, allowing people to download freely. Readers can either download the Traditional Chinese version, or download the simplified Chinese version, or download the English version. In short, casual readers download, manufacturers do not receive a dime, charge is the cost of testing after the software download.
"Maybe some people feel that this is a forced move, but from the game between Nintendo and Sony, this helpless move is more effective." Lin Weixian said.
In the 1980s, Nintendo was the overlord of the console market and developed a number of popular games around the world, such as Mario Brothers and King Kong. By 1989, Nintendo consoles occupied 90% of the U.S. market and 95% of Japan's market. Basically monopolize the game industry.
There are two kinds of games that are run on Nintendo consoles: one is developed by oneself and the other is authorized by a third party. Third-party games that want to run on Nintendo's game consoles must pay Nintendo a certain amount of "rights money," and Nintendo imposes more stringent conditions on third parties. For example, it must pass Nintendo's “Quality Seal†certification. Only 5 games can be developed each year, and the first order quantity must be 20,000 sets. In addition to the “rights moneyâ€, a “game cartridge production fee†of US$14 is charged, and the production cost of the cassette is only US$4. Only this one can make Nintendo earn 10 US dollars.
The latecomers, Sony, on the contrary, used the world's leading position in display technology, audio, and digital technology. Sony began to apply these technologies to game consoles to produce powerful game consoles and fully introduce third parties. Game production. In the life cycle of the Sony PS machine, Sony received more than 1,400 games. By the end of 2004, Sony had occupied 68% of the game console market share. Each Sony sells a PS and PS2, it will lose about 37 US dollars, but Sony mainly rely on the royalties paid by third parties to make money, for each sale of a PS and PS2 game, the third party will have to pay Sony to 7-8 US dollars . The more games a player buys, the more Sony naturally earns.
Although Nintendo is the leader of the game console, it is not positioned to take care of the interests of the third party at the bottom of the pyramid. As a result, it quickly lost its status as the boss and was replaced by Sony. "So, in the customer's positioning, the bottom part of the pyramid is always the most important." Lin Weixian said that if the value of the entire customer has changed, the company has not followed the change, then the business of the business will be harder and harder.
Electrical Fan,Exhaust Fan,Floor Standing Fan
Electrical Fan Co., Ltd. , http://www.nselectricfan.com