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9. Complete the following table that describes the three types of business models - Leaving Cert Home Economics - Question 9 - 2018
Question 9
9. Complete the following table that describes the three types of business models. | Type of Business Model | Description | |---------... show full transcript
Worked Solution & Example Answer:9. Complete the following table that describes the three types of business models - Leaving Cert Home Economics - Question 9 - 2018
Step 1
a) Type of Business Model
Answer
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Subscription Model: This model involves customers paying a recurring fee to gain access to a product or service. It's commonly used in software (SaaS) and media industries.
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Freemium Model: In this model, a business offers basic services free of charge while charging a premium for advanced features. This strategy helps attract a large user base.
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Marketplace Model: This model connects buyers and sellers on a single platform, taking a commission from sales. Companies like eBay and Amazon follow this model.
Step 2
b) Description
Answer
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Subscription Model: Provides steady revenue with predictable cash flow. Companies can build long-term customer relationships.
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Freemium Model: Encourages user acquisition without upfront costs. It relies on converting free users into paying customers.
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Marketplace Model: Facilitates transactions between third parties. It leverages network effects as more users attract more sellers and vice versa.