Business model – set of processes that combine to yield a profit.
business models not only did not matter, they probably did not exist” (Michael Porter, Professor, Harvard Business School)
Revenue model – specific collection of business processes used to identify customers, market to those customers, and generate sales to those customers.
Classify revenue generating activities for communication and analysis purposes.
Business process – different processes in the business operation. Ex. Purchasing raw materials or goods for resale, converting materials and labor into finished goods, managing transportation and logistics, hiring and training employees, etc
Merchandising – to convince customers to buy through the help of a combination and a blend of store design, layout, and product display knowledge.
Commodity item – product or service that is hard to distinguish from the same products or services provided by other sellers; its features have become standardized and well known. Ex. Gasoline, office supplies , soap, computers, and airline transportation, books and CD’s sold by Amazon.com.
Shipping profile – collection of attributes that affect how easily that product can be packaged and delivered. A high-to-weight ratio to make the overall shipping cost a small fraction of the selling price. Ex. Airline Ticket has a high-to-weight ratio.