GOOGLESCHOLAR BUS 313 Assignment 2: Target Market Segment

Assignment 1: Business Models

Lynnisa Berry

Strayer University

Dr. William P. Creamer

04-24-2016

There is various business models that are used based on the nature of the business that is being set up. One of the various models used is the direct sales model. I have chosen to write about a startup idea for starting a praline business. In direct sales, a network of people generates revenue by selling products or services directly to the customers. There is also a franchise model where owners of business purchase the strategy employed by another reputable organization. For example: The Savannah's Candy Kitchen, which is a very exceptional opportunity to be a part of one of America's finest candy brands. The third common business model is the Premium model, where a company provides free services to customers in establishing a foundation for future transactions.

Of the three models identified, the best business model for my business would be the direct sales. Since the business is a start up, the direct sales model would be the best model that would help in meeting the goals and objectives of the business. One of the major advantages of using this model is the direct contact with the customers, which provides real time information from the customers about their needs and expectations about the particular product. Secondly, creating a network of marketers makes it easier in introducing the product in the market since the marketers are strategically positioned in different areas. Finally, the use of direct sales is important in ensuring that the risks associated with the introduction of the product have been spread. Spreading the risks also means that the marketers are in a position to gather information, which will be useful in avoiding the risks of the startup. Even though this is the best business model that has been chosen for the start-up, it is important to note that other models cold be incorporated after the business picks.

References

Osterwalder, A., Pigneur, Y., & Clark, T. (2009). Business model generation: A handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur.