2. Various Business Models
• Bricks & Clicks
– Offline and Online product purchase
• Collective Business Models
– Sharing resources
• Component Business Model (IBM)
– Focus on reuse
• Franchise (McDonald)
• Razor and Blades
– Offering basic product at low cost and charge for refill
or associated products (Cell Phone / Air Time, Reader
Free /Writer charged, Printer Free /Cartridge costly)
http://www.radiantminds.co.in
3. Business Models
• 1950 - Toyota & McDonald
• 1960 - Wal-Mart
• 1970 - FedEx & Toys R Us
• 1980 - Block Buster & Dell
• 1990 - e-Bay, Amazon
• 2000 - Adobe, HP
http://www.radiantminds.co.in
4. Business Models
• Today’s Mantra –
– Reaching large number of customers with
minimum cost
– Marketing through Social Networking
– Make business available on mobile
– Hosting application in cloud
– Collaboration and Integration
– Information on finger tips
– Using Freeware / Open source
http://www.radiantminds.co.in
5. McDonald
• Fast Food Restaurant
• Serving more than 58 million customers daily
• Vision – Speedy Service System
• Revenue – Rent, Royalties, Franchise, Training
• Locations – 32,000 worldwide
• Revenue – 24 Billion USD
• Net income – 4 Billion
• Assets – 31 Billion
• Employees – 400,000
http://www.radiantminds.co.in
6. McDonald
• Modern Fast-food restaurant
• Counter Service and Drive-through
• Indoor and Outdoor seating
• Play area for children's
• McExpress – Shopping malls
• McStop – Truckers and Travelers
• McCafe (Coffee)
• Investors in properties (15% are owned by them)
• Single largest purchaser of raw food item
(contract farming)
http://www.radiantminds.co.in
7. Wal-Mart
• Chain of Discount dept. stores and warehouses
• World’s largest public corporation
• 8900 stores in 15 countries
• Revenue – 421 Billion
• Employees – 2.1 million
• Assets – 180 billion
• Purchases from all around the world
• SCM, Logistics, HR …..
http://www.radiantminds.co.in
8. FedEX
• Express shipping
• Small package ground service
• Less than truckload service
• Custom duty and tax information services
• Acquired Kinko's - Printing and office soln.
• Parcel Direct – home delivery
• Revenue – USD 34 Billion
• Owns flights, trucks and number of other vehicles
http://www.radiantminds.co.in
9. Blockbuster
• Provides Home Video and Video games rental
• DVD-by-mail
• Streaming Videos on demand
• Employees – 60,000, Revenue – 6.4 Billion
• Use lot of business intelligence while keeping
videos in store
• Become bankrupt in 2010 as technology changed
and there was lot of internet piracy
http://www.radiantminds.co.in
10. Starbucks
• Largest Coffeehouse in the world
• 17,009 stores across 50 countries
• Hear Music
• Markets Books, Music and Films
• Many products are seasonal and locality specific
http://www.radiantminds.co.in
