Poor Business Model
What does poor business model mean?
A common mistake of a poor business model is when the business occurs high costs with low profit margin.
A poor business model can also means that the business has no clear commercial or monetisation model.
Definition of business model
A business model is a company’s plan and core strategy for making a profit in its business.
It is the means and methods a firm employs to earn the revenue projected in its plans.
The two levers of a business model are pricing and costs.
Read Mark Johnson’s list of various business models at Harvard Business Review’s article, "What is a business model?", written by Andrea Ovans (2015).
Return to Glossary of business failures or read "Poor Leadership".
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Last edited on 6 January 2022.