BUSINESS MODELS AND PLANNING Assignment Example | Topics and Well Written Essays - 750 words - 1

BUSINESS MODELS AND PLANNING - Assignment Example According to wired magazine, craigslist is the currently â€Å"most popular dating site†, job searching site, apartment hunting site and selling site despite its weird business model. Craigslist does not entertain innovation, and has very few workers. However, craigslist has remained a performer in the market due to. Reaching customers: this refers to the process of using communication channels to reach the customers of a product with an aim of generating a market. Entry into a new market is very easy. This happens through the company’s ability to draw a chain of people. When the network enters into a given region and obtains a few clients, other people soon find it necessary. Product differentiation: this is the process of developing unique strategies for product positioning that spotlight the product’s true value in the market. A company needs a clear understanding of its competitors and should clearly differentiate its product from those of the competitors. Craigslist is clearly known for its dating services, job hunting among others and therefore attract so many people in those areas. Pricing: this is the determination of the amount of money that a company will charge for its product or service. This starts by an evaluation of the value customer attach on a product, consideration of production cost, consideration of competition landscape and finally determination of price. This has been the strongest point of craigslist model i.e. offering very low prices that attract and keep the customers (Osterwalder 270). Selling: this involves the actual persuading and convincing a customer to buy a product. This calls for a precise understanding of what is required to close a business deal, and subsequent organization of a sales force. Craigslist does not stock items that it deals with but rather performs the deals as an intermediary. Delivery /distribution: this is the process of transporting goods from the business premises to the