The Best Business Model Starts From The Profit Point.

So, what kind of business model is competitive, or what is the best business model?

"The criterion of a best business model depends on whether the business model has more profit points.

In the current market, the more profit points, the more profitable it is, the more ways to protect existing profit streams.

"The best business model," Lin Weixian, chairman of the author and practitioner's education group, said to China United Business Daily. "This is also the starting point for building the best business mode, but these profit points can not be shaped at once. It needs a platform to build.

That is what the saying goes, "first dig more wells and sell water."

"When your platform is big enough, all the money will come back to you."

Lin Weixian thinks that QQ is the same.

QQ's main revenue is actually very low, but its marginal projects can bring more than 65% of its revenue.

Now QQ is the 300 billion Hong Kong dollar market value company. It comes from its large platform and enough customers, so it has created amazing value in the future.

By contrast, Tetra Pak has made a big difference in the lock up of every customer.

Mengniu and Erie sell a bottle of milk, and a Swedish company called Tetra Pak will be very happy.

Why?

Because Mengniu and Yili used cardboard boxes and aseptic paper were made by Swedish Tetra Pak company.

Why do Mengniu and Yili companies use aseptic paper made by Swedish Tetra Pak company?

Lin Weixian thought the reason was very simple, because Tetra Pak first took the initiative to think about its customers.

Mengniu has only a few million yuan to start up business. It is impossible to buy a complete set of filling equipment like Sweden's Tetra Pak, because a device costs millions of dollars, and Mengniu simply can not afford it.

"Nothing I can do for you," Swedish Swedish Tetra Pak said to Mengniu. "I'll give you a plan. Assuming that the equipment is worth 3 million yuan, then I will give you the machine first. You only pay 20% yuan or 600 thousand yuan, and the remaining 2 million 400 thousand yuan will be returned slowly in 4 years, and 20% in one year, or 600 thousand yuan in one year.

But if you buy more than 4 of the aseptic wrapping paper that you use in the next 4 years, then I will save the money you should pay 20% of the machine every year. "

That is to say, this set of equipment is basically delivered to Mengniu.

Mengniu was reluctant to use Swedish Tetra Pak's equipment when he was just starting a business and when the funds were tight.

In Lin Weixian's view, Swedish Tetra Pak company is very smart, this equipment has a bar code filling machine patent, this is a technology, and this technology can make any other company, any other brand of wrapping paper can not enter its machine.

That is to say, if you buy the machine of the Tetra Pak company, you need to buy its paper, otherwise, you can get stuck in other people's paper and get stuck in the milk.

So Tetra Pak has relied on this unique technology to protect it.

However, in order to avoid the mess of later generations, when Tetra Pak's competitor Kang Meibao entered the industry and adopted the same business model, Tetra Pak immediately changed the pattern and changed the rules of the game, because it was a forerunner and capable.

Tetra Pak also resorted to the "killer weapon" without cost. It is not necessary to buy paper to send machine, but machine 10 Fen. If you buy more than a certain amount of paper, the machine will give you away.

Why is Tetra Pak willing to do this?

Lin Weixian said, from the annual sales report of Erie company, we can see that 40% of the sales cost of Erie's sales comes from wrapping paper. This shows that the most profitable thing is not the machine that can only be sold once, but the wrapping paper used every day.

"So Tetra Pak is willing to help Mengniu and Yili dairy companies, because these companies will bring greater profits to Tetra Pak after they grow up."

Lin Weixian said that with the rapid growth of China's dairy industry in recent years, the Swedish Tetra Pak company has also been developing at a rate of 44%.

We should know that the annual growth rate is 44%. According to the compound interest effect, it will turn into a few times growth over the next decade or more.

That's the key.

{page_break}

When the business models of every business in the world are changing, are you changing along with them?

In Lin Weixian's view, the business model is not static. The best business model is to constantly modify the market as it changes.

For example, most mobile phones now have a lot of software to download.

Many software is for sale. Take the human resources management evaluation software discus as an example. The previous set of 60 thousand yuan sold is now free on the Internet and mobile phones, allowing people to download freely.

Readers can download traditional Chinese characters, Download simplified Chinese characters, and download English versions.

In short, 10 Fen of the manufacturers do not accept the download. They charge the cost of testing after downloading.

"It may feel that someone has been forced to do so, but from the point of view of Nintendo and SONY, this helpless action is more effective."

Lin Weixian said.

In 1980s, Nintendo was the overlord of the console market and developed many popular games, such as Mario brothers and big King Kong.

By 1989, Nintendo had captured 90% of the US market and 95% of Japan's market.

Basically, it monopolizes the game industry.

There are two kinds of games running on Nintendo game: one is self developed, the other two is authorized by third parties.

If the third party game wants to run in Nintendo's game machine, it must pay a certain amount of royalty to Nintendo, and Nintendo has made more stringent conditions for the third party.

For example, through Nintendo's "quality seal" certification, only 5 games can be developed each year, and the first order quantity must be 20 thousand sets.

In addition to the "Royalty", a $14 "game cassette production fee" will be charged, while the cost of making the cassette will be only $4. Only this one, Nintendo can earn $10.

SONY, on the contrary, has the world's leading position in display technology, audio and digital technology. It has begun to apply these technologies to game machines, producing powerful game machines, and fully introducing third party game making.

In the life cycle of SONY PS, SONY has won more than 1400 games support.

By the end of 2004, SONY had accounted for 68% of the console market share.

Every time SONY sells a PS and PS2, it loses about $37, but SONY relies on the royalties paid by the third party. Every time we sell a game of PS and PS2, the third party will pay US $7~8 to SONY.

The more games a player buys, the more money SONY will naturally earn.

Although Nintendo is the boss of the game console, but the positioning error, did not take care of the interests of the third sides of the bottom of Pyramid, so soon lost the status of the boss, replaced by SONY.

"Therefore, in the positioning of customers, the bottom part of Pyramid is always the most important part."

Lin Weixian said, if the whole customer value has changed, and the enterprise has not changed, then the business of the enterprise will be more and more hardworking.