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From course:

Industrial Strategy 2022

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Question:

What are the 3 business model archetypes?

Author: Hjalmer Pedersen



Answer:

• Razor & blade – named after the classic Gillette strategy of selling razors cheaply and profiting from sales of high priced blades (Hewlett Packard - printers; Nestle -Nespresso; etc) • Freemium – combining ‘free’ and ‘premium’. Free attracts customers and create network effects, and some upgrade to premium services (e.g. Spotify; LinkedIn; etc) • Peer-to-peer (disintermediation) – brings together people and/or businesses directly (via the Web/app) bypassing the traditional “middle-man” (GoMore; TransferWise)


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