Types of Business Model for MyGiftShopper.com Essay

Types of Business Model for MyGiftShopper.com - Essay Example   Two of the business models that were accepted by the team are Freemium Business Model and Multi-Side Matching Business Model. The reasons for accepting the Freemium business model is that it would allow the company to attract as many subscribers as possible as at the beginning of the business, it would be difficult for the firm to draw too many paid subscribers. The other business model accepted is the Multi-Side Matching Business Model and the main reason that has been presented for the acceptance of the business model is that different groups of customers would be able to satisfy their needs with different merchants and the company would be able to make money through both means i.e. from customers as well as from merchants. The team not only presented logical reasoning behind acceptance of the two models, but reasonable facts and reasons were also presented regarding why the team had rejected the other two business models. The main reason for rejecting the two models is more or less the same i.e. increase the cost of the firm which would make it difficult for the firm to either attract more customers if the charges are increased or it would be difficult for the firm to make sufficient amount of profits. In the other section of market opportunity analysis, the team did the much better job as they were able to analyze how the market influences MyGiftShopper.com from a different perspective. The influence of the customers was discussed and opportunities were analyzed about the target market of the firm in a statistical way with several facts. However, in the segmentation section of the business plan, the team should have covered the types, ages, demographics, and other characteristics of the target market and how they plan to segment their customers.