Now it’s time to pull everything together and create your final business plan. Make sure to review all the feedback you received for Assignments 1, 2, and 3, and make the necessary corrections. The

Assignment 1: Business Models

BUS 313: Introduction to Entrepreneurship

Phabian Smith

Strayer University

April 20, 2019

The three-business model often used by organizations are Bricks and Clicks model, Bait and hook model and the last is subscription business model. Subscription business model is where an organization charges its clients a fixed monthly fee for the services or goods provided. Bricks and Clicks model is a business model used by firms that operate offline and online business transaction to meet the needs of their customers. Hook and bait model are a system where the organization uses low price and gifts to attract and retain their customers. The model ensures that the prices offered by the organization are lower than the market prices to convince the customers to buy from them (Baden-Fuller & Morgan, 2010). Various organizations use different models depending on their goals in conducting business.

The tax preparation businesses use subscription business model because of various reason. The tax preparing businesses offer the same services to the customers that do not change their prices; the fixed prices allow the businesses to offer the services to the firms and individuals for a given period then payment is made for the whole period. Some of the firms also use the business because of the upfront payment made by the customers thus assuring the businesses that they will get profit at the end of the finance period because of lack of bad debts. The model helps the business to reduce bad debts by terminating the contract if the subscription is not renewed. The model helps in retaining customers since the subscription is made before the service are delivered (Weinhardt, Anandasivam, Blau & Stößer, 2009). The customers are likely to stick with the firm offering the required services for long. The last reason for the use of the model is the assurance of the continuity of the business because of the upfront payment made by the customers.

References

Baden-Fuller, C., & Morgan, M. S. (2010). Business models as models. Long range planning, 43(2-3), 156-171.

Weinhardt, C., Anandasivam, A., Blau, B., & Stößer, J. (2009). Business models in the service world. IT professional, (2), 28-33.