To make it easy, "Business Model" is how a company makes money through delivering total value solutions either in form of product or service to certain group of customer.
Starbucks delivers good atmosphere coffee place to customer door where a customer can meet up friends and do their notebook works outside home. Starbucks serves as customer second home.
McDonald's delivers value for money quick meal for customer who has limited time.
iPhone delivers a total solutions of mobile communication and entertainment device. Apple's iDevices are seamlessly interfaced with online world.
In order to develop a right business model, the company needs to understand customer's needs and be able to develop solutions to those needs.
Once the company product or service is able to penetrate into customer mind, it creates brand loyalty.
From brand loyalty, it paves way for company future development of new products or services.
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