Understanding and Evaluating Different Business Models

Business Models
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Business Models
Bricks and Clicks Model
The Bricks and Clicks model is applicable when an organization carries out a business offline and online. The ‘Bricks’ term refers to the physical location of the business like a store, and the ‘Clicks’ term refers to the clicks online business (Kerzner, 2019). This form of business is advantageous because it allows an organization to access a broad base of customers when conducting business online and benefiting from profits generated offline. Additionally, actual and potential consumers are often thrilled with the convenience of online business hence giving a competitive edge for an organization. For instance, the millennia generation is techno-savvy, hence prefers online transacting. The customers have two options of doing business with the company; hence the model itself is a customization strategy.
The Bait and Hook Model
The Bait and Hook model is based on the assumption that an organization can stimulate consumers to buy its products and commodities by reducing prices and offering after-sale services. The model is based on profit generation; hence the strategy emphasizes reducing product prices to attract many customers for an organization to benefit from the economies of scale when the customers buy in bulk (Kerzner, 2019). The reduction of prices or offering the freebies is meant to make the business deal appealing to the customers hence serves as the firm’s bait and hook strategy. The customer’s yield to buying the products is considered a hook, given that the organization will not always give out freebies. The organization understands that when the customers purchase the product the first time, they are likely to return without ind...