55 different Business Model Patterns are explored

In this section, dive into one of the 55 Business Model Patterns, each providing a practical template to help you build new business models from scratch and supercharge your existing business models. A short description is provided, capturing the key concept and underlying mechanisms of the respective business model pattern, as well as exemplary firms applying the pattern.

1. BUSINESS PATTERNS

2. 80+ Business Patterns

3. Business Patterns Franchising Ingredient Branding Freemium Pay What You Want Razor and Blade Rent Instead of Buy Prosumer Ultimate Luxury Shop-in-Shop User Defined

4. Franchising Franchising is a business model where a company (the franchisor) licenses its brand, products, and operating methods to another party (the franchisee) in exchange for a fee. The franchisees benefit from the usage of well known brands, know-how and support.

5. Franchising Example: KFC KFC is a globally recognized fast-food chain specializing in fried chicken. Franchisees run individual KFC restaurants, following the franchisor’s recipes, branding, and operational guidelines. KFC provides comprehensive support, including marketing, training, and product innovation.

6. KFC (Kentucky Fried Chicken) is a well-known example of a successful franchise model in the fast-food industry. Franchising

7. Ingredient Branding Ingredient branding is a marketing strategy where a component or ingredient of a product is branded separately, highlighting its value and benefits to enhance the overall product's appeal.

8. Ingredient Branding Example: Hershey’s Chocolate Chips Hershey’s is a well-known brand associated with high-quality chocolate products. By branding their chocolate chips separately, they communicate to consumers that their product stands out due to the use of premium chocolate.

9. Ingredient Branding Pillsbury uses Hershey’s chocolate chips in its ready-to-bake cookies.

10. Freemium The freemium business model is a popular strategy where a company offers basic services or products for free while charging for premium features, functionality, or content.

11. Freemium Example: Chaayos Chaayos, a popular chai cafe chain in India, sometimes offers free small samples of their signature teas or a complimentary beverage.

12. Freemium Once customers have tried the free sample and enjoyed it, they are encouraged to purchase larger sizes, additional snacks, or premium variants of their drinks.

13. Pay What You Want The "Pay What You Want" (PWYW) pricing model allows customers to decide how much they want to pay for a product or service, sometimes even allowing them to pay nothing at all.

14. Pay What You Want Example: Seva Cafe in India The "Pay What You Want" (PWYW) pricing model allows customers to decide how much they want to pay for a product or service, sometimes even allowing them to pay nothing at all.

15. Pay What You Want The concept is based on the idea of selfless service and trust. After enjoying their meal, customers are presented with a bill that says “0 INR” and are invited to pay what they feel the meal was worth or contribute toward a future customer’s meal .

16. Razor and Blade The "Razor and Blade" business model involves selling a primary product (the razor) at a low price, while the complementary products (the blades) are sold at a higher margin.

17. Razor and Blade Example: Coffee Machine and pods The coffee machine itself is sold at a low cost, while the company makes its profit from selling proprietary coffee pods or capsules that are necessary for the machine to operate.

18. Razor and Blade Attracting customers with a low-cost or free primary product helps build a customer base.

19. Rent Instead of Buy The "Rent Instead of Buy" model allows customers to rent products or services for a specific period rather than purchasing them outright.

20. Rent Instead of Buy Example: Kitchen Appliances & equipment rental This model is particularly effective for items that are used infrequently, are costly to buy, or have a high rate

21. Rent Instead of Buy In the food industry, particularly for catering services, food trucks, and special events, businesses and individuals can rent high-end kitchen appliances and equipment instead of buying them.

22. Prosumer The "prosumer" model blends the roles of producer and consumer, where individuals or businesses not only consume but also actively contribute to the production or creation of a product or service.

23. Prosumer Example: Blue apron Blue Apron provide meal kits with pre-portioned ingredients and recipes, allowing consumers to cook meals at home. The company provides the ingredients, consumers take on the role of the chef, customizing and preparing their own meals.

24. Prosumer The company provides the ingredients, consumers take on the role of the chef, customizing and preparing their own meals.

25. Ultimate Luxury The "ultimate luxury" industry refers to the highest tier of luxury goods and services, often characterized by exclusivity, exceptional quality, and extraordinary pricing.

26. Ultimate Luxury Example: Louis Vuitton Louis Vuitton (LV) is renowned for its high-end fashion products, including luxury handbags, luggage, clothing, shoes, and accessories.

27. Ultimate Luxury Owning Louis Vuitton products is often seen as a status symbol, reflecting affluence and taste. The brand’s products are associated with a high level of prestige and social standing.

28. Shop-in-Shop The "shop-in-shop" concept refers to a retail arrangement where a smaller store or branded section is set up within a larger store

29. Shop-in-Shop Example: Starbucks in Target Many Target stores have a Starbucks inside, providing customers with the convenience of grabbing a coffee while shopping. This arrangement benefits both brands by enhancing the overall shopping experience and encouraging longer store visits.

30. Shop-in-Shop  Target and Starbucks have a partnership and what better way to appeal to the consumer than to have a coffee shop in retail store. 

31. User Defined A user-designed industry refers to a business or sector that is shaped and driven by the preferences, contributions, or innovations of its users or customers.

32. User Defined Example: Nike The customizable fashion industry allows customers to design their own clothing, accessories, and even footwear. This industry is shaped by user preferences, enabling individuals to create unique items that reflect their personal style.

33. User Defined Nike’s platform allows users to customize their sneakers, choosing everything from colors to materials.