In today’s world，It has become increasingly difficult to play the product/service differentiation card with competitors for a long time。But if you can design a better business model than your competitors，The situation is different again。See below how Stategyzer provides you with 7 ways to improve the competitiveness of your business model...

The reason why a business survives，The premise must be that there is a value proposition that customers need。But if all you have is a good value proposition，At best, this is enough for you to participate in the competition (it is far from allowing you to stand out from the competition)。

Strong business models usually combine multiple business model mechanisms to enhance business competitiveness，If used well, your career will be unbreakable。The following brings you 7 business model mechanisms to strengthen your business model。

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This business model mechanism mainly uses various means to increase the switching cost of your customers，It has been described in detail in my previous article "Six strategies to lock in customers: teach you how to embed switching costs into your business model"，So I won’t go into details here，Please move to this article to read。

2. Recurring Revenues

Please ask yourself，Does every business you finalize require new efforts to complete？Or is this all the result of (automatic) follow-up sales and revenue。

What you may not realize is，In fact, many of your purchasing behaviors involve follow-up marketing。For 188bet online sports betting example, when Amazon sells you a Kindle，It knows very well that you will soon come back to them to purchase the corresponding content，Product or e-book，This is the embodiment of follow-up marketing。

A more typical example of recurring revenue is newspaper and magazine subscriptions。In the current software-based media industry，We can see that the current subscription model is changing from the previous way of selling serial numbers once through transactional sales，Moving to a new subscription business model with monthly or annual recurring revenue。

One of the special features of this business model of recurring income is，The subsequent sales or customer acquisition costs brought by the first business are very considerable。In the previous transactional sales model，Every new business requires the support of new and costly sales costs。

If you’re interested in more businesses that infiltrate recurring revenue into their business models，Please see the examples of “Amazon Premium Membership Service” and “Xiaomi” analyzed in our other previous articles。

3. Make money first vs. Spend money first

Dell introduced this business model mechanism in the 1990s，And revolutionary application to PC production and sales。The previous approach was，PC manufacturers will spend money to produce the computer up front (resulting in paying a lot of production costs up front)，Then hand these computers over to the seller，Finally, the seller puts it on the store for sale to end users。These computers will stay in these stores for a while，As time goes by，These computers will slowly depreciate in value。So in this business model，PC manufacturers spend a large amount of money before any money flows into their pockets for a long time。

Dell introduced the “make money first” business model mechanism，Completely subvert the old business model。What it does is receive orders directly from end users，As soon as the customer pays, the computer will 188bet online sports betting be assembled and shipped。They continue to optimize the production practice of "zero inventory"，Ensure a smooth transition between receiving orders, collecting money, and shipping。Compared with the traditional business model above，Dell does not need to spend a lot of money on computer production before making money，And at the same time avoid the depreciation caused by large inventory。

4. Game-changing cost structure

This is what Nike successfully accomplished after inventing “Flyknit” technology for sports shoes。Before the Shuttle，Sweatshops require 30-40 pieces of material to be sewn together to make a pair of running shoes，This is a labor-intensive and costly task。

Nike then invented what is now known as "The process of micro-level precision engineering。In this process，A software instructs a knitting machine to knit a running shoe upper from just one piece of material。This new technology reduces labor costs to a minimum，It will also trigger the following result: because this is no longer a labor-intensive task，No more leaving these tasks to sweatshops，So these tasks can be handed over to factories closer to the sales market，The result will be more transportation cost savings。What is the final result？The result is，Compared to other competitors，Nike’s Flyknit sneakers are not only cheap to produce，And lighter and better。

Another example is Bharti Airtel in India，It is the first company in the world that dares to outsource the entire telecommunications network，Thus turning the originally huge cost of building and maintaining network infrastructure into variable costs。Skype in the same industry has subverted the entire market by providing completely free Internet calls，Because Skype is a completely software-based OTT business model，No need to bear the cost of telephone network。

5. Let customers do work for you (for free)

During the 1950s and 1960s，Tupperware Just a housewife，Their target customers，Convert into 188bet app their direct selling army。This famous kitchenware company makes good use of this group of users for word-of-mouth marketing，And let these customers participate in the "Tupperware Party" events they promote，Sell their products to other housewives through these housewife customers。With this strategy，Tupperware did so without spending any money on hiring additional marketing staff，Significantly increased their turnover。

Compared to any other factor，Facebook’s business model is more dependent on the content generated by its users。From this perspective，In fact, Facebook has a super labor force of more than 1 billion free employees to process information for it、Picture、And other content publishing companies。No more free labor，Facebook will be worthless。

Another example of allowing customers to provide free services is IKEA。Customers (more or less out of passion) buy parts from them and assemble them themselves，The task of assembly should have been IKEA’s own responsibility。

Or take a credit card company as an example。In their business model，Businessmen and buyers actually help them complete most of the work，These credit card companies themselves only need to operate their trading platforms。

6. Scalability

Enterprises that have considered the scalability of their products/services to a large number of users/customers in their business models from the beginning，Compared to those companies that need to make frequent adjustments due to changes in user volume，It has huge advantages。

Take Uber as an example，This is an application platform that connects taxi drivers and passengers。No matter the number of customers using this platform is 5,000 or 50,000，Uber’s business model does not require any reset at all。What’s even more incredible is，The more taxi drivers and passengers use their platform，The more attractive Uber’s value proposition becomes，Because both passengers and drivers will have more choices。

So，Digital platforms are certainly one of the most scalable business models。For example, before WhatsApp was sold to Facebook for more than 10 billion US dollars，Only 60 employees can serve more than 400 million users。

Of course，The business model of physical enterprises can also become more scalable。For example，Before McDonald’s greatly improved its scalability through franchise stores，The scalability of the catering industry is actually very bad。Generally，The licensing operation method is actually a very scalable business model mechanism，And it can be applied to a variety of business models。

7. Barriers to competition

This last point is the culmination of these mechanisms，It integrates all the business model mechanisms mentioned above，Thus protecting you from your competitors。

For example，Apple is the world’s leading smartphone manufacturer，But its products are not available to everyone。For example，You may think that other smartphones on the market are better than the ones offered by Apple。But Apple’s business model has its own deep moat，It is difficult for other competitors to cross this gap and pull it down from the altar。

For example, Apple’s AppStore connects countless iOS users with countless software developers，Provides countless applications for users to search and use。That’s why Apple’s moat is so deep，It’s not that its technology is difficult to surpass，But its ecosystem is difficult to copy。Even if you have the best technology，It’s hard for you to get a share of the pie right under Apple’s nose。Today only Google carries its Android operating system，Be able to carve a bloody path outside Apple's moat，And start anew to create an ecosystem across the river to compete with it。

Finally, please put your business model on the table，Conduct careful review。You can do it like this，As long as your business model meets one of the business model mechanisms mentioned above，You can add one point to your 188bet sports betting app download business model，Finally you will be able to make a good assessment of the competitive health of your business model。