Knowledge is the key to business

WITH global economies intertwining more than ever before, it is obvious to the masses that knowledge on where and how money should be utilised is crucial. It is also common for parents to suggest to their children to take up an undergraduate degree in business, as it is often considered among the “safest” or most popular courses for students who do not have passion for the three “holy grails” (medicine, law, engineering), and to enter the workforce with a recognised qualification.

However, competition between businesses is at an alltime high, and only knowledge will determine the success of any business venture. Therefore, why not learn more about these unique business models in a postgraduate business course and be inspired to take your future business venture or company to a whole new level?

Middleman model (The Warby Parker Model)

Through Warby Parker’s initial venture into the designer eyewear industry, it realised that a lot of designer eyewear products were overpriced because many companies had sold their rights to bigger companies, who were monopolising the industry.

Hence, they decided to create a new “middleman model”, in which start-ups deal with the production line directly, cutting costs significantly and growing the business rapidly, and increasing their customers by offering designer products at a cheaper price point.

Marketplace model

The basic summary of a marketplace model is to bring supply and demand together in one place. Companies such as Airbnb, Uber, Amazon and Foodpanda bring together both producers and consumers on to the same stage. Buyers and sellers can carry out their business at their own convenience, while still being connected to the marketplace.

This model takes little to no physical space and capital, making it almost risk free and easy for start-ups to set up camp.

Customisation model

Everyone loves having something made just for them. However, these items take time to make, and not everyone has the luxury or skill to create something truly special. But, if you are a person who possesses such skills, why not turn it into a business?

From big companies such as Nike offering services for customers to customise their own shoe designs, to a small start-up business selling customisable handmade keychains, there is a large potential market out there, as people will always love feeling special by receiving something made just for them.

Reverse auction model

What would it be like to live in a world where buyers set the price instead of the sellers? The reverse auction model does just that, where buyers bid their chosen price to the sellers, while sellers accept the most reasonable and profitable price for them to be paid. After that confirmation, the buyer has to agree to all the terms and conditions from the seller to carry out a successful transaction.

This is a win-win situation for both sides, as buyers feel like they have won by getting something for a cheaper price, while sellers win by selling leftover goods that they might not have sold otherwise on a traditional platform.

Although this model has not set foot in Malaysia, it has proven successful in the United States, through companies such as Priceline, Fedbid and Squeezify.

Virtual goods model

Have you ever played an online game where you have to pay cash for virtual currency to customise your characters or power them up to get through a very difficult level? Have you ever sent a virtual gift card to someone as a gift? Welcome to the world of the virtual goods model, where both goods and transactions stay in the online world, but hold a big part of the economy’s spending power.

Apple, Amazon and many other large companies utilise this model, as it has been proven that customers like to take convenience to another level, and are willing to pay for virtual goods to get instant gratification.

With the ever-evolving sphere of business tactics and models, it is always crucial to be one step ahead of your competitors to ensure a successful business venture. Consumers love and crave the idea of unique experiences; therefore, businesses will constantly have to tweak old business models, or create a new one altogether, to flourish.