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What's in a name?

The terms frameworks, tools and models often get mixed up. We are not precious about which term is used except we don't want you to visit our site and be disappointed if your find we are talking about something else.

Our focus is on frameworks that are tools used to help solve business problems. These may be tactical problems such as "how much should we charge for a new product?" (see the sections on new product pricing, or SIMALTO or conjoint) or strategic problems such as "which target market should we focus on over the next three years?" (see the sections on the ADL matrix, or Ansoff matrix or Boston Consulting Group matrix).

The book we keep bringing to your attention has the title "The Business Models Handbook" and it is all about these frameworks.

However, if you type "business models" into Google you will see a different interpretation. The term model is often used to refer to the rationale for a company. For example, Warby Parker is a retailer of glasses (spectacles). Their business proposition is to sell you a pair of specs that are very keenly priced and also to donate a second pair to someone in need. This altruistic offer has resulted in the company growing rapidly and it is frequently referred to as the Warby Parker model because it is their way of doing business.

Other ways of doing business could be cutting out the bricks and mortar retail outlets (as in party plans) or subscriptions (as in Dollar Shave Club), or pile it high and sell it cheap (as in Walmart). These are models but they are not tools. They are the principal means by which a business is run.

If you are interested, we can happily extend our site to cover these types of models. Let us know what you think.

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