Marketing activities become more complex as customers have to be convinced and approached on different levels to address the complex value proposition.A broader resource allocation to different teams needed.Managing different teams (production, marketing etc.).Overhead to be covered by one offering only.Challenging to ensure cash-flow, especially in initial stages.Helps increasing brand recognition among a broader customer basis.Multiple business models may more easily allow an enterprise to diversify risks and take advantage of markets/ business offerings that work.Cross-financing possible in case of decreased cash-flow of one particular business model.market can be specifically served it one particular solution Cross-financing possible in case of decreased cash-flow of one particular product.distribution channels, marketing channels etc. Synergies are possible between business models e.g.Easier to keep overview on business activities.

It is easier to develop and produce one product or service compared to a multitude.

Unique knowledge can be developed to address one single value proposition.

Multiple business models address multiple value propositions through one or more products and/or services.

In order to understand this distinction of business models better, the table below provides definitions and examples:Ī simple business model addresses a value proposition through one particular product or service (compare value proposition).Ī complex business model addresses a broader, more complex value proposition through one or more products and/or services or a combination of it. Multiple business models address multiple value propositions through one or more products and services. A complex business model addresses a potentially broader value proposition through one or more products and services ( SMITH ET AL., 2010). A simple business model addresses a value proposition through one particular product or service.

2016 business modelling tools