Wei Wei

Guiping Lin

Wuxiang Zhu

Approaching Business Models from an Economic Perspective examines business model logic and explores the model from different aspects including definition, design, functionality, elements, and self-sustaining logic. It explains the essence and core elements of a business model and unlocks its mysteries, helping transform business model practices into an expedient set of theories that in turn facilitate application in real scenarios. The book explores the logic behind the six major elements and enables entrepreneurs to study and implement business model theory and make decisions confidently based on a compelling logic. Moreover, it demonstrates through an array of convincing examples that a transaction structure and its six elements follow the principles of increasing transaction value, reducing transaction costs, and mitigating transaction risks.

Approaching Business Models from an Economic Perspective

This book mainly focuses on defining profit models, on how many main kinds of profit models there are, how profit models can change a company, and how to tailor a profit model to the needs of a certain company. In this context, profit models are classified as fixed-income, remaining-profit and profit-sharing, admission, toll, parking, fuel and sharing fees, profit sources, customer pricing, auction, combined pricing, etc. The logic behind all these profit models will be analyzed in detail and numerous micro-cases will be introduced. All of the micro-cases discussed are the best profit model practices used by outstanding enterprises, mainly from China and the USA (including HomeAway, Priceline, Tencent, Sina, Google, the Voice of China, CSPN and so on). These models will be complemented by a wealth of figures and additional tools to help readers better understand the principle of profit models. As such, the book not only explains “why” entrepreneurs preferred to apply a specific kind of profit model and not others, but also answers “how” they derived that model.

Wuxiang Zhu

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