Business model

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Business model is a combination of internal mechanisms (such as the type and usage of business resources that supporting business functions, processes) and extension of the company’s structure (such as channels and affiliated parties). The integration, causality of both mechanisms comprehensively can create very powerful effect on customers and competitors on the market.

I often hear people like to say their strategy in Asia Pacific markets is to sell products or services to whom in a right time, right moment and right place, and emphasize the different positioning among competitors on the market, however when I look into the execution strategic plans, most of them from my view are not practical and applicable, because what resources they really have or not in hands, and also market insight (competitors, customer habit/culture etc) are totally ignored in many cases.

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I would say strategy is a part of and a kind of reflecting the shape of business model, which can support strategy implemented smoothly and successfully, and consequently help acquire and retain customers, differentiate with competitors on the market as well in a sustainable way.

And most importantly, the landscape in Asia Pacific is very different and more complex. I’m not saying global level business model approaches can’t be rolled out to local level, after all some in common. However rolling out a business can adapt to a local market like Japan, China, Korea, Thailand etc by adjusting the practices is a key to succeed in Asian markets.

Is it very abstract and complex, right? No worries. I’ll list out 30 successful business model patterns out of 5 fundamental types of business model worldwide, along with showing cases of Asian Pacific companies vs global ones of course.

  • Network & Platform Model

Uber, Google search engine, Facebook, Wechat, Amazon, Baidu etc unlimited Internet companies that we are very familiar with are running a network and platform business model. But what network & platform business model. Below picture can precisely and simply show you:

Same-side chain effect

Facebook, Wechat, Linkedin, Douyin, Line, Twitter

Cross-side chain effect

Uber, Google, Baidu, Bing, Yandex, Nave & Yahoo Japan

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Louis Lu

By Louis Lu

Growth Hacker & Digital Marketer, with a proven record of over 11 years experience in 20+ Asian markets, and 24,000+ connections in Linkedin

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