🧩 Types of Models in Entrepreneurship with Examples
1. Business Model
A business model explains how a company creates value and earns money. It answers: Who are the
customers? What do they value? How does the business deliver that value and make a profit?
🔸 Examples:
Subscription Model – Customers pay a regular fee (monthly/yearly) to access a product or service.
✅ Example: Netflix – Users pay monthly to watch movies and shows.
Retail Model – The business sells products directly to customers either in a physical store or online.
✅ Example: Shopee or SM Department Store – They earn by selling a variety of items like gadgets,
clothes, and appliances.
2. Financial Model
A financial model helps manage the company’s money. It predicts costs, profits, and cash flow, and
helps entrepreneurs plan for the future.
🔸 Examples:
Break-even Model – Shows the point where a business’s total income equals its total expenses.
✅ Example: A small bakery calculates how many cakes it must sell per week to cover costs like
ingredients, rent, and salaries.
Forecasting Model – Predicts how much money the business will make in the future based on trends.
✅ Example: An online store expects higher sales during Christmas, so it plans more stock and sets sales
targets.
3. Strategic Model
This model helps a business compete in the market. It focuses on long-term goals and what makes the
business better than others.
🔸 Examples:
Cost Leadership Strategy – Offering the lowest prices in the market to attract more customers.
✅ Example: Puregold – Sells affordable goods to beat more expensive stores.
Differentiation Strategy – Offering something unique or high quality to stand out.
✅ Example: Apple – Known for unique design, innovation, and premium pricing.
4. Operational Model
This model explains how the business runs daily activities like production, customer service, or delivery.
🔸 Examples:
In-house Production – The company makes its own products.
✅ Example: Goldilocks – Bakes their cakes and pastries in their own facilities.
Outsourcing Model – Some business tasks (like delivery or IT support) are given to outside providers.
✅ Example: Foodpanda – Uses freelance riders instead of hiring full-time delivery staff.
5. Marketing Model
This model shows how the business promotes its product or service and reaches its target market.
🔸 Examples:
Social Media Marketing – Using Facebook, TikTok, or Instagram to advertise and connect with
customers.
✅ Example: Small local shops post daily product updates and promos on Facebook to attract buyers.
Influencer Marketing – Partnering with online personalities to promote products.
✅ Example: Beauty brands working with vloggers to review skincare products.
6. Innovation Model
An innovation model is used to create new ideas, improve existing ones, or change the market
completely.
🔸 Examples:
Disruptive Innovation – Creates something new that changes the way an industry works.
✅ Example: Uber – Changed transportation by letting people book rides from an app instead of taxis.
Open Innovation – The business works with others (like universities, customers, or other companies) to
develop ideas.
✅ Example: LEGO Ideas – Fans submit new LEGO designs, and if approved, they’re sold and the creator
earns a share.
✅ Summary Table
Model Type Example Explanation
Business Model Netflix (Subscription) Monthly fee for services
Financial Model Bakery Break-even Know when profits begin
Strategic Model Apple (Differentiation) Unique products for brand strength
Operational Model Foodpanda (Outsourcing) Uses third-party delivery riders
Marketing Model Facebook Ads Social media promotions
Innovation Model Uber (Disruptive) Changed traditional industries
