2. Introduction
A business model describes the rationale of
how an organization creates, delivers, and
captures value.
On the other hand, a business plan is how you
execute the business model. If the business
model does not work, the business is unlikely
to do well.
3. 1. Niche
Concentrating on a small, differentiated slice
of the market
Success factors
• Compatibility of niche needs and product
features
• Size of niche
• Willingness to pay
• Accessibility
5. 2. Long Tail
in ecommerce, esorage and display of
products has become very cheap
Entrepreneurs are cashing in by selling small
volumes of hard to find products
Success factors
• Make everything available
• Have a low price
• Help find products
7. • Founded by Sachin and
Binny Bansal in October
2007
• Both had worked for
Amazon
• Growth:
– 4 cr (2009)
– 20 cr (2010)
– 75 cr (2011)
– 200 cr (2012)
– 4500 cr (2015 – projected)
8. 3. Mass Customisation
Combines the low unit costs of mass
production processes with the flexibility of
individual customisation
• Modularize products
• Delay assembly
• Use configurators to capture customer
preferences
• Assemble and deliver
10. 4. Freemium
Give away a free basic version and charge for
upgrades
The free version can be;
• Feature limited
• Time Limited
• Capacity limited
• Seat limited
• Customer Class Limited
12. 5. Unbundling
• Breakup a product into independent
components
• Strip away add-ons
• Sell components as a complete product
• Up sell add-ons
• Increase in prices is possible
13. Zoho
Directly competing against Salesforce.com and
Microsoft, Zoho prefers selling their business tools as
stand alone components rather than as part of a suite
16. Zoho Viewer
17. Zoho Meeting
1. Zoho Assist
18. Zoho Mobile
2. Zoho Business
19. Zoho Notebook
3. Zoho Books
20. Zoho People
4. Zoho Calendar
21. Zoho Personal
5. Zoho Challenge
22. Zoho Planner
6. Zoho Chat
23. Zoho Polls
7. Zoho Creator
24. Zoho Projects
8. Zoho CRM
25. Zoho Recruit
9. Zoho Discussions
26. Zoho Reports
10. Zoho Docs
27. Zoho Search
11. Zoho Gadgets
28. Zoho Share
12. Zoho Wiki
29. Zoho Sheet
13. Zoho Writer
30. Zoho Show
14. Zoho Invoice
31. Zoho Support
15. Zoho Mail
14. 6. Bundling
• There are economies of scale in production,
• There are economies of scope in distribution,
• Marginal costs of bundling are low
• Production set-up costs are high,
• Customer acquisition costs are high.
• Consumers appreciate the resulting
simplification
15. Comprehensive Health checkups
Comprehensive health checkups have become
revenue drivers at several diagnostic centres
16. 7. No Frills
• Low prices are driven by low costs
• Rarely will small firms have lower costs than
large firms
• Decrease costs by removing ‘frills’ which are
costly but are not valued much by customers
20. 9. Open Business Models
Tapping into a community to build a business
• Open source software
• Crowd sourcing
– Crowdfunding
– Crowdcreation
– Crowdvoting
– Crowd wisdom
21. • Problems can be explored at comparatively
little cost, and often very quickly
• Payment is by results or even omitted
• The entrepreneur can tap a wider range of
talent
• Entrepreneurs gain first-hand insight on their
customers' desires
• The community may feel a brand-building
kinship with the entrepreneur
23. 10. Multi Sided Platforms
• The entrepreneur acts like a go-between
• To be effective, a sufficiently large pool is
needed on both sides.
• A strong value proposition needs to be crafted
for both sides
• Usually there are high network effects
24. Redbus
• Turnover of 150 crores and headed towards
1500 crores
• Walked into a space other had failed in
• Success after they realised that bus operators
were customers too
25. (Bonus) 11. Social Enterprises
Working on business-minded solutions to
social problems
Vijay Mahajan – “Single goal optimization is a
20th century anacronism”
Social entrepreneurs approach social
problems in a business like manner
