Types of Business Models Flashcards
Online Business
exist solely on the internet with a small number of offices to facilitate business operations
Online Business Advantages
- 24/7 Trading
- Avoid expenses associated with a physical store
- Reach customers across the globe
Online Business Disadvantages
Customers are not able to physically see, touch or try an item, expose customers to risk of credit card theft
Bricks and Mortar
Business that have a physical location, some had to adapt and establish an online presence to compliment their physical store which is called bricks and clicks
Advantage of Bricks and Mortar
0ffer face to face interactions, less likely to have unsatisfied customers
Disadvantages of Bricks and Mortar
More expensive to establish and maintain, difficult to remain competitive on price
Direct to Consumer
Businesses that sell their products directly to consumers without any intermediaries
Advantages of DTC
Strong customer connections builds loyalty
Disadvantages of DTC
Must master all aspects of the business: production and selling
Franchise
Franchisors sells the rights of a business name and products to a franchisee
Advantages of a franchise
high success rate, supplied with start up money and labour and required training and staff development
Disadvantages of a Franchise
Franchisors have a lot of control over operations
Importers
businesses that source goods from overseas for sale in the market due to their superior quality, cheaper cost of production or lack of viable alternatives.
Advantages of an Importer
has a superior quality, cheaper cost of production
Disadvantages of an Importer
needs to ensure products meet all Australian standards before selling
Exporter
Businesses that sell Australian goods and services to oversea customers
Advantages of Exporter
Opportunity for a business to grow and expan
Disadvantages of an exporter
Need to consider legal requirements of the country you are exporting to
