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5 Business Models And Their Differences

Business Models: It sounds cliché, but behind a successful company, many important decisions influence its performance and results. And the details defined even before it leaves the paper make all the difference.

When we consider choosing one among the various business models available, for example, we put into play the plan to guide the creative process and the value delivery for the company. And, want some advice? For each business, this recipe will be unique.

With this difficult task in mind, we created this post to explain better these models and why they are important. Let’s go together in this reading.

What Are Business Models?

Business models are nothing more than the operational structure of a company. Its approaches, purposes, objectives, values ​​to be delivered to the market, key activities, resources used, and network of partners.

Popularity is how the entrepreneur plans to make money. Therefore, it is essential to know well:

  • who are your customers;
  • what they value;
  • the product and service development process.

Finally, a business model translates the entire system to ensure the best alignment with the desired public. But it does not stop there.

Business models can and should change as the company grows. It’s just that organizations need to see social transformations to understand changes in consumer behavior and adapt the necessary aspects to meet their expectations.

Often, these transformations end up bumping into the need to adopt a new business model. It’s part of the game!

And What Are The Top 5 Business Models Today?

Here, you will learn a little about the business models most used by successful companies today.

Everything As A Service (XaaS)

Everything is a service. XaaS is one of the fastest-growing business trends in recent times. It is a model that offers a wide range of technologies to enhance the activities of its customers.

And what’s better: they are hired according to the needs of each company. To summarize, we outsource resources that can be accessed without the need to install the devices or purchase the tool.

How Everything as a Service explores cloud computing and its segment has been gaining a lot of prominence in the market. After all, it frees businesses of all types from the need to invest in:

  • equipment;
  • storage space;
  • maintenance.

Do you know what that means? You add values ​​such as reducing costs and increasing the productivity of your teams and your customers’ routines.

For those thinking of operating with a remote team, XaaS has the main solutions to make this type of project viable.

Software As A Service (SaaS)

SaaS businesses develop software and distribute it to customers via the Internet. They market the use license, that is, a recurring billing service.

Hence the name software as a service, you know? It is not just the purchase of a product. The mission of a SaaS model company is to maintain the full functioning of the contracted system and data security.

They deliver the entire technological infrastructure capable of operating within the expected standard.

Cloud Business

Digital technologies are dominating the corporate environment. And in this scenario, cloud computing has been standing out as the protagonist of digital transformation.

Cloud business models are nothing more than offering resources or tools that work 100% online.

This is ideal for companies that want to work with recurring income, that is, monthly subscriptions — one of the pillars to make the famous home office viable.

Scalability, integration, accessibility, and efficient data management are some of the outstanding characteristics of those operating in this system.


The main feature of the On Demand business model is the development of specific solutions for each customer’s demand. It is common for it to be adopted in software services, for example.

Regarding the type of charge, the On Demand business model works proportionally to the work effort.

Want more details? In addition to implementing a system, companies that operate in this segment not only can but should invest in differentials.

Support, consulting, auditing, and customization of processes- actions that guarantee the best customer experience.

The model responds very well to complex demands, ranging from billing management and data security to interactions with the target audience. And, as the name suggests, they are fully customizable features.


Marketplaces are environments (virtual or physical) in which smaller stores rent space to sell their products or services. 

On the one hand, we have the large retailers — who already have authority in the segment and efficient technical support to deal with consumers — and, on the other, the small entrepreneurs, who take advantage of the entire structure and market potential of the marketplace to connect with the public. This match also benefits customers, as they can find everything they need in one place.

What Is The Impact Of The Choice Of Business Model?

As mentioned, choosing business models is critical to the company’s success. After all, the adopted style will guide the structuring of the entire internal routine and its interaction with the market.

An organization aware of the main components of action ends up delivering a more qualified service and nurturing a closer relationship with consumers — which is excellent for their engagement.

When the business model is well defined, it reflects on aspects such as:

  • clarity about its way of creating value;
  • identification of points that need improvement;
  • development of competitive differentials;
  • identification of trends and innovations, etc.

Business models with good planning are an important tool to make visible all the information related to the company’s value proposition and, thus, optimize its strategies.

Also Read: Business Experience: What It Is?

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