LED lighting industry business model and innovation in the end is what? (two)

This is the value of business positioning in the business model.

Three, product model

Product model corresponds to the maximum value of the user's interests, the interests of enterprises to maximize the interests of stakeholders, the largest demand solutions. Therefore, the product model is not a single product output or sales, but the product as the carrier of the associated solutions. For example, Butler is not only the sale of socks, socks, but to help users solve stocking demand solutions; three squirrels sales not only nuts, but millet mobile phone sales of value-added services; is not only a mobile phone, but a sense of participation and act; not only sell hamburgers, is the real estate enterprises; Southwest Airlines Sales is not just cheap, there are happy; GE sales is not only the engine, more maintenance services; Gillette shaver sales is not only a knife, blade is more; the iPhone sales is not only a mobile phone, and APP application; Tetra Pak installed rely on to help customers build a production line, and then continued sales of packaging supplies; Taobao is not only a platform. Is the toll station, advertising company.

Many Internet products are free of charge, the sale of two strikes, related services, etc.. Therefore, in the product model, the product is always just a carrier, can be based on the product derived user needs to provide a solution to the point of interest, is the highest specifications of the product model.

Four, trading system

The trading system is an organic combination of the trade structure, content, mode, scale, environment, and the corresponding strategies and systems. In the business model, the stronger the integration ability of the trading system, the stronger the profitability of the enterprise. For example, the compression structure of the transaction (electricity, direct marketing, custom etc.); bundled trade objects (GREE, Wahaha); strengthen the trade competitiveness (upstream and downstream goods after the first paragraph, after the first shipment; pre-sale system); change transactions (micro business, business, first use free of charge after the purchase the pet trade method, the wool in dogs and pigs to pay Crowdsourcing, etc.); change to raise public transaction content (such as the journey of the game without money, give subsidies, let them play with rich people etc.). Therefore, in the business model, as long as it is possible to change the trading system of low efficiency, low value, low output and other aspects, can be said to be a model of innovation, especially in this era of the internet.

Five, cost structure

In the business model, not to mention the cost structure is absolutely not a sound business model or pseudo business model. The cost structure here refers to the enterprise in the operation of the required expenditure, not only limited to the product level. Business model design to increase the cost of attention to the user, the user to ignore the cost reduction, but at the same time improve efficiency and value, is the best business model. For example, millet at the product level to increase costs, increase the cost in terms of user experience, while the cost of other inputs is almost zero.

Business model innovation, cost restructuring is not a good strategy.

Six, profit model

The profit model generally depends on the product model, transaction system, cost structure is composed of three key elements or a key factor (product model, transaction system, cost structure of three a) and create a new profit model. Because the profit is the most talked about topic, often talking about the profit model is in fact talking about the value of the product model, trading system, cost structure innovation and growth points.