vodafone business model ppt

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Our objectives could not be more simple: to continue to invest in a superior network and customer experience, and to sustain high levels of cash generation with which we can reward shareholders and reinvest in the business – so maintaining that virtuous circle.

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FY24 Q3 Presentation

Q3 FY24 Trading Update

Q3 FY24 trading update February 2024

Vodafone Group Plc

Q3 FY24 Trading Update ⫶ February 2024 Turnaround planning ⫶ April 2023

Q3 performance ⫶ Maintained good growth in service revenue

Europe & Africa service revenue growth (%)

Group service revenue growth (%)

Group excl. Turkey

• Continued growth in Europe, supported by price actions • Continued good growth in Africa supported by reacceleration in Vodacom Internationals • Turkey growing ahead of inflation

• Good Group growth maintained at +4.7% (Q2: 4.7%) • Vodafone Business +5.0% (Q2: 4.3%), supported by IoT growth acceleration

Q3 FY24 Trading Update ⫶ February 2024

1 Vodacom Group service revenue growth, including Egypt

Vodafone Business ⫶ Further growth acceleration

Strong financial performance

Markets progress

Unique capabilities in digital

Business service revenue growth, Q3 FY24 (%)

Business service revenue growth (%)

Digital services 1 revenue growth (%)

14.6% 13.6%

• Growing across all customer segments • Europe +3.7% in Q3 (Q2: +3.0%) • Acceleration driven by strong public sector growth and digital services adoption

• Q3 IoT growth of +19.6%, driven by UK and Other EU projects • 29.3% growth in Cloud; SaaS 2 and Security • Strategic Microsoft partnership announced, including planned Vodafone IoT investment

• Germany impacted by strong prior year digital revenue, and in-year IoT phasing • Strong UK IoT project revenue • Italy fixed connectivity and digital services growing, supported by ERF • All segments growing in Other EU

1 Digital services include IoT, Cloud & Security services, now 18% of Vodafone Business service revenue 2 Software as a Service

Germany ⫶ Commercial improvement

Service revenue growth

Key drivers

• Slower growth, due to Business revenue phasing and unwind of non-recurring Q2 service provider revenue

• Last wave of broadband price increases concluded during January 2024

Germany 31% of Group service revenue

• Mobile customer net additions supported by good growth in branded Consumer

• Bundled TV and Broadband proposition launched in December. MDU TV end user migrations to individual bills started in January 2024, ahead of July 2024 law change

Net additions (‘000)

Service revenue growth (%)

Mobile contract

Europe ⫶ Growing in 8 out of 10 markets

Organic service revenue growth (%)

-1.0% -1.3%

• Strong Business growth with further public sector contract wins • Growth in FWA customers balancing fixed broadband losses • Mobile Consumer market remains competitive

Italy 11% of Group service revenue

• Strong service revenue growth in both Consumer and Business • Mobile and fixed customer growth, supported by Black Friday promos • Progressing merger with Three UK with CMA notification filed

UK 15% of Group service revenue

• Service revenue growth in all markets, supported by broad based pricing actions & good commercial momentum • Further acceleration in Business growth to 7.8% (Q2: 5.2%), driven by digital services and public sector contract wins • Business driving service revenue trend improvement • Business service revenue returned to growth, supported by strong digital services demand, ERF 1 and public sector contract wins • Low-end Consumer segment competition remains intense

Other Europe 13% of Group service revenue

-3.7% -3.0%

Spain 9% of Group service revenue

1 European Recovery Funds

Africa & Turkey ⫶ Good growth maintained

• Slower service revenue growth reflected strong mobile data demand in prior year during widespread power outages • Expect trend reacceleration, driven by strong Business Digital demand

South Africa 8% of Group service revenue

27.6% 28.4% 29.1%

• New price increases in mobile (Dec’23) and fixed (Jan’24) • Strong demand for Vodafone Cash • Inflation at 34% in December 2023

Egypt 4% of Group service revenue

• Reacceleration in DRC, supported by network investment • Tanzania momentum maintained, with good M-Pesa and data growth • Mozambique impacted by price transformation and macro pressure

Internationals 4% of Group service revenue

(Reported Euro growth, excl. hyperinflation)

• Growth ahead of inflation for four consecutive quarters • Repricing actions continuing • Reported Euro service revenue growth of 17.7%

Turkey 4% of Group service revenue

More information

ESG reporting & performance

Importance notice

Provide investor feedback here ⫶

investors.vodafone.com/feedback

Appendix I More information

Vodafone Business ⫶ Virtual investor briefing

Vodafone Technology ⫶ Virtual investor briefing

Connecting people, places & things for a better future • We operate in attractive markets • We have unique scale & capabilities • We have strong operating momentum • We are on a clear growth pathway

A globally scaled operator • Our customer demand continues to accelerate • We have a strong technology roadmap

• We allocate capital to drive returns • We are transforming to deliver growth

Materials including videos, presentation, case studies and Q&A: investors.vodafone.com/vbbriefing

Materials including videos, presentation, case studies and Q&A: investors.vodafone.com/vtbriefing

Additional data ⫶ Spreadsheet format

Social Contract ⫶ Virtual investor briefing

Shaping the Digital Society • Historical policy choices have impacted the European telecoms sector • Our ‘Social Contract’ enabling digital society • Pro-investment policy reform is essential for Europe to meet its digital objectives

investors.vodafone.com/results

Quarterly revenue

Marketable homes passed

Group financial performance

TV customers

Segmental results

Converged customers

Segmental analysis

Mobile churn

Mobile data usage

Materials including presentation & case studies: https://investors.vodafone.com/social-contract

Mobile customers

Mobile ARPU

Fixed broadband customers

Appendix II ESG reporting & performance

Extensive suite of ESG disclosures

Strong ESG performance

Annual Report ⫶ vodafone.com/ar2023

ESG Addendum ⫶ investors.vodafone.com/esgaddendum • >1,200 datapoints, covering >300 indicators, in spreadsheet format • Includes GRI Standards index

ESG Ratings ⫶ investors.vodafone.com/esg-ratings

• Integrated reporting covering ESG strategy & performance • Complimented by six videos on key ESG topics

MSCI ESG Rating 1, 2 “A”

Sustainalytics ESG Risk Rating 1, 3 “Low risk” Top 6% in sector

Board conversations ⫶ investors.vodafone.com/videos • Nine videos with Chair and Committee chairs • Introductions to new Non-Executive Directors

ESG A-Z ⫶ investors.vodafone.com/esga-z

• >30 links to supporting disclosures, reports & policies • Categorised by E, S or G & searchable

ISS ESG Corporate Rating 1 “B” Top 5% in sector

Refinitiv ESG score 1 “85/100” #2 in sector CDP Climate Change 1 “A” Leadership band

TCFD ⫶ investors.vodafone.com/tcfd

SASB ⫶ investors.vodafone.com/sasb

• Seven disclosure topics • Includes additional information beyond what is required in the SASB Standards

• Aligning to TCFD framework since 2019 • Fully or partially consistent with all 11 TCFD recommendations

1. Unless otherwise stated, ESG ratings and relative position within sector as at 31 January 2024. See additional disclaimers on page 10. | 2. In 2023, Vodafone Group Plc received a rating of A (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment.

3. In 2023, Vodafone Group Plc received an ESG Risk Rating of 16.4 and was assessed by Sustainalytics to be at low risk of experiencing material financial impacts from ESG factors.

Appendix III Important notice

You have been provided access to this presentation on the basis that you are an investment professional for the purposes of Article 19 or a member of the press for the purposes of Article 47 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. No other person should act or rely on the information presented and you agree to be bound by the following conditions. You may not disseminate these slides or any recording of this conference, in whole or in part, without the prior consent of Vodafone. This presentation contains non-GAAP financial information which the Vodafone Group’s management believes is valuable in understanding the performance of the Vodafone Group. These non-GAAP measures include Organic service revenue growth, Europe & Africa service revenue growth , Organic Vodafone Business service revenue growth, Reported Euro growth excluding hyperinflation, Digital services revenue growth and Organic group service revenue growth excluding Turkey. Definitions of these non-GAAP measures can be found in the Vodafone Group Plc Q3 Results for the three months ended 31 December 2023. This report can be found at investors.vodafone.com. However, non-GAAP financial information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Vodafone Group’s industry. Although these measures are important in the assessment and management of the Vodafone Group’s business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures.

References to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to Vodafone Group Plc and its subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech Mark Devices, Vodacom and Together We Can are trade marks owned by Vodafone. Other product and company names mentioned herein may be the trade marks of their respective owners.

Please note that Europe & Africa service revenue growth, Reported Euro growth excluding hyperinflation and Digital services revenue growth are not defined in the Q3 trading update. We suggest defining these measures there if used in the presentation.

Vodafone to please confirm these are the right trademarks

This presentation, along with any oral statements made in connection therewith, contains “forward - looking statements” including within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Vodafone Group’s financial condition, results of operations and businesses, the information regarding the announced agreement to combine Vodafone UK and Three UK, the change in German TV regulations, expected trend reacceleration in South Africa, repricing actions in Turkey, the Vodafone Group’s strategic partnership with Microsoft, including the planned Vodafone IoT investment, and certain of the Vodafone Group’s plans and objectives. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as “transform”, “plan”, “continue”, “pathway”, “progress”, “roadmap”, “expect”, or “accelerate” (including in their negative form). By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found under “Forward looking-statements and other matters” and “Risk Management” in the Vodafone Group Plc Annual Report for the year ended 31 March 2023 and under “Risk Factors” and “Forward -looking statements and other matters” in the Vodafone Group Plc H1 Results for the six months ended 30 September 2023. These reports can be found at investors.vodafone.com. All subsequent written or oral forward-looking statements attributable to Vodafone, to any member of the Vodafone Group or to any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in or made in connection with this presentation will be realised. Any forward-looking statements are made as of the date of this presentation. Except as otherwise stated and as may be required to comply with applicable law and regulations, Vodafone does not intend to update these forward-looking statements and does not undertake any obligation to do so.

Information in this presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.

This presentation includes certain information from third-party sources. The Vodafone Group has not independently verified the market data or other information (i) contained in third-party sources or (ii) on which such third-party sources are based, nor does the Vodafone Group make any representation or give any warranty as to the accuracy or completeness of such information. The information from third-party sources that is cited here has been reproduced accurately. The use by the Vodafone Group of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of the Vodafone Group by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI. Copyright ©2022 Sustainalytics. All rights reserved. This presentation contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.

Upcoming events

investors.vodafone.com

Vodafone Group Investor Relations

[email protected]

1 Kingdom Street, London, W2 6BY

14 May 2024

FY24 Results

Matt Johnson Director Group IR

[email protected]

25 July 2024

FY25 Q1 Results

Daniel Morris Deputy Director Group IR

[email protected]

Roy Teal Deputy Director Group IR

[email protected]

30 July 2024

Annual General Meeting

Victoria Garnham Corporate Access Group IR

[email protected]

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Why vodafone group's business model is so successful.

Vodafone Group business model canvas

Vodafone Group’s Company Overview

Vodafone Group plc. is a British multinational telecommunications company, with headquarters in London. Among mobile operator groups globally, Vodafone ranked fifth by revenue. Vodafone provides global IT and communications solutions across our mobile, fixed-line, cloud and IoT (internet of things) networks.

Country: London

Foundations date: 1991

Type: Public

Sector: Telecommunications

Categories: Telco

Vodafone Group’s Customer Needs

Social impact:

Life changing: affiliation/belonging, self-actualization

Emotional: badge value, design/aesthetics, fun/entertainment, attractiveness, provides access

Functional: integrates, connects, simplifies, avoids hassles, informs, quality, variety

Vodafone Group’s Related Competitors

Vodafone group’s business operations.

An additional item offered to a customer of a primary product or service is referred to as an add-on sale. Depending on the industry, add-on sales may generate substantial income and profits for a firm. For example, when a customer has decided to purchase the core product or service, the salesman at an automotive dealership will usually offer an add-on sale. The pattern is used in the price of new software programs based on access to new features, number of users, and so forth.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Data warehouses:

A data warehouse (DW or DWH), sometimes referred to as an enterprise data warehouse (EDW), is a computer term that refers to a system used for reporting and data analysis. It is a critical component of business intelligence. DWs are the centralized repository for data that has been integrated from one or more separate sources. They keep track of both data and information and generate analytical reports for skilled professionals throughout the business.

A brokerage firm's primary responsibility is to serve as a middleman, connecting buyers and sellers to complete transactions. Accordingly, brokerage firms are compensated through commission once a transaction is completed. For example, when a stock trade order is executed, a transaction fee is paid by an investor to repay the brokerage firm for its efforts in completing the transaction.

Augmenting products to generate data:

Due to advancements in sensors, wireless communications, and big data, it is now possible to collect and analyze massive quantities of data in a wide range of settings, from wind turbines to kitchen appliances to intelligent scalpels. These data may be utilized to improve asset design, operation, maintenance, and repair or improve how an activity is carried out. Such skills, in turn, may serve as the foundation for new services or business models.

Archetypes of business model design:

The business model archetypes include many business personalities and more than one business model linked to various goods or services. There is a common foundation behind the scenes of each unit, but from a management standpoint, each group may operate independently.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer data:

It primarily offers free services to users, stores their personal information, and acts as a platform for users to interact with one another. Additional value is generated by gathering and processing consumer data in advantageous ways for internal use or transfer to interested third parties. Revenue is produced by either directly selling the data to outsiders or by leveraging it for internal reasons, such as increasing the efficacy of advertising. Thus, innovative, sustainable Big Data business models are as prevalent and desired as they are elusive (i.e., data is the new oil).

Decomposition:

Simplifying many product kinds inside a product group or set of goods. A technique for doing business analysis in which a complex business process is dissected to reveal its constituent parts. Functional decomposition is a technique that may be used to contribute to an understanding and management of large and complicated processes and assist in issue solving. Additionally, functional decomposition is utilized in computer engineering to aid in the creation of software.

Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Brands consortium:

A collection of brands that coexist under the auspices of a parent business. The businesses in this pattern develop, produce, and market equipment. Their strength is in copywriting. Occasionally used to refer to a short-term agreement in which many companies (from the same or other industrial sectors or countries) combine their financial and personnel resources to execute a significant project benefiting all group members.

Demarketing:

Excluding current clients that are unprofitable or who do not adhere to company principles. Efforts directed towards reducing (not eliminating) demand for a product that (1) a company cannot provide in sufficient quantities or (2) a firm does not want to sell in a particular area due to prohibitively expensive distribution or marketing expenses. Increased pricing, less promotion, and product redesign are all common demarketing tactics.

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Multiple products or services have been bundled together to enhance the value. Bundling is a marketing technique in which goods or services are bundled to be sold as a single entity. Bundling enables the purchasing of several goods and services from a single vendor. While the goods and services are often linked, they may also consist of different items that appeal to a particular market segment.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Discount club:

The discount club concept is built on perpetual high-discount deals utilized as a continual marketing plan or a brief period (usually one day). This might be seen as a reduction in the face value of an invoice prepared in advance of its payments in the medium or long term.

Combining data within and across industries:

How can data from other sources be integrated to generate additional value? The science of big data, combined with emerging IT standards that enable improved data integration, enables new information coordination across businesses or sectors. As a result, intelligent executives across industries will see big data for what it is: a revolution in management. However, as with any other significant organizational transformation, the difficulties associated with becoming a big data-enabled company may be tremendous and require hands-on?or, in some instances, hands-off?leadership.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

Dynamic branding:

Dynamic branding is a technique for refreshing your identity without totally altering it. You can link to anything; you may modify the logo according to the seasons or for a particular event. It has been proven effective many times. However, it does not work for every business.

Make more of It:

The business invests time and money in developing in-house expertise and development that may be used both internally and outside to sell goods or services to clients or third parties. AWS was created to meet Amazon's cloud computing requirements. They quickly discovered that they could offer their services to end-users. At the moment, AWS accounts for about 11% of Amazon's overall income.

On-demand economy:

The on-demand economy is described as economic activity generated by digital marketplaces that meet customer demand for products and services via quick access and accessible supply. The supply chain is managed via a highly efficient, intuitive digital mesh built on top of current infrastructure networks. The on-demand economy is transforming commercial behavior in cities worldwide. The number of businesses, the categories covered, and the industry's growth rate are all increasing. Businesses in this new economy are the culmination of years of technological progress and customer behavior change.

Regular replacement:

It includes items that must be replaced on a regular basis; the user cannot reuse them. Consumables are products utilized by people and companies and must be returned regularly due to wear and tear or depletion. Additionally, they may be described as components of a final product consumed or irreversibly changed throughout the production process, including semiconductor wafers and basic chemicals.

Performance-based contracting:

Performance-based contracting (PBC), sometimes referred to as performance-based logistics (PBL) or performance-based acquisition, is a method for achieving quantifiable supplier performance. A PBC strategy focuses on developing strategic performance measures and the direct correlation of contract payment to success against these criteria. Availability, dependability, maintainability, supportability, and total cost of ownership are all standard criteria. This is accomplished mainly via incentive-based, long-term contracts with precise and quantifiable operational performance targets set by the client and agreed upon by contractual parties.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Easy and low cost money transfer and payment:

This business model makes cheaper and more accessible for users to transfer money and make and collect payments. Sending or receiving money for either payment of salaries, settlement of business transactions, payment of school fees, or for family support is common both for businesses and individuals. It requires efficient, reliable and affordable money transfer services whereby money can be deposited in one location and withdrawn in another in both urban and rural areas.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

The long tail is a strategy that allows businesses to realize significant profit out of selling low volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The term was coined in 2004 by Chris Anderson, who argued that products in low demand or with low sales volume can collectively make up market share that rivals or exceeds the relatively few current bestsellers and blockbusters but only if the store or distribution channel is large enough.

Orchestrator:

Orchestrators are businesses that outsource a substantial portion of their operations and processes to third-party service providers or third-party vendors. The fundamental objective of this business strategy is to concentrate internal resources on core and essential functions while contracting out the remainder of the work to other businesses, thus reducing costs.

Open business:

Businesses use the open business approach to incorporate goods and services ecosystems from third parties that operate inside the same market framework. Collaboration between companies has the potential to increase the value delivered to the end customer or user. Software developers and platform integrators often use this business model.

Revenue sharing:

Revenue sharing occurs in various forms, but each iteration includes the sharing of operational gains or losses amongst connected financial players. Occasionally, revenue sharing is utilized as an incentive program ? for example, a small company owner may pay partners or colleagues a percentage-based commission for recommending new clients. Occasionally, revenue sharing is utilized to share the earnings generated by a corporate partnership.

From push to pull:

In business, a push-pull system refers to the flow of a product or information between two parties. Customers pull the products or information they need on markets, while offerers or suppliers push them toward them. In logistics and supply chains, stages often operate in both push and pull modes. For example, push production is forecasted demand, while pull production is actual or consumer demand. The push-pull border or decoupling point is the contact between these phases. Wal-Mart is a case of a company that employs a push vs. a pull approach.

Infrastructure as a Service (IaaS):

Infrastructure as a Service (IaaS) is a subset of cloud computing that offers on-demand access to shared computing resources and data to PCs and other devices. It is a paradigm for ubiquitous, on-demand access to a pool of customizable computing resources (e.g., computer networks, servers, storage, applications, and services) that can be quickly provided and released with little administrative effort.

Dynamic pricing:

This pattern allows the business to adjust its rates in response to national or regional trends. Dynamic pricing is a pricing technique known as surge pricing, demand pricing, or time-based pricing. In which companies establish variable prices for their goods or services in response to changing market conditions. Companies may adjust their rates based on algorithms that consider rival pricing, supply and demand, and other market variables. Dynamic pricing is widely used in various sectors, including hospitality, travel, entertainment, retail, energy, and public transportation.

Microfinance:

Microfinance provides financial services to entrepreneurs and small companies who may not access traditional banking and financial services. The two primary delivery methods for financial services to such customers are (1) relationship-based banking for individuals and small companies and (2) group-based models, in which many entrepreneurs pool their resources to apply for loans and other services together.

Micropayment:

Micropayments are financial transactions involving a tiny amount of money that is frequently conducted online. While micropayments were initially intended to apply minimal amounts of money, practical systems allowing less than one dollar transactions have met with little success. One impediment to the development of micropayment systems has been the need to keep transaction costs low, which is impracticable when transferring such tiny amounts, even if the transaction charge is just a few cents.

Self-service:

A retail business model in which consumers self-serve the goods they want to buy. Self-service business concepts include self-service food buffets, self-service petrol stations, and self-service markets. Self-service is available through phone, online, and email to automate customer support interactions. Self-service Software and self-service applications (for example, online banking apps, shopping portals, and self-service check-in at airports) are becoming more prevalent.

Fast fashion:

Fast fashion is a phrase fashion retailers use to describe how designs travel rapidly from the catwalk to catch current fashion trends. The emphasis is on optimizing specific supply chain components to enable these trends to be developed and produced quickly and affordably, allowing the mainstream customer to purchase current apparel designs at a reduced price.

Resellers are businesses or individuals (merchants) that acquire products or services to resell them instead of consuming or utilizing them. This is often done for financial gain (but could be resold at a loss). Resellers are well-known for doing business on the internet through websites. One instance is the telecommunications sector, in which corporations purchase surplus transmission capacity or take the call from other providers and resell it to regional carriers.

Reverse innovation:

Reverse innovation is a strategy that involves creating inventions in emerging (or developing) markets and then distributing/marketing them in established ones. For example, numerous businesses make goods in rising economies like China and India and then export them.

This model is used to describe a pricing system that charges a single flat price for service regardless of its actual use or duration. A company may establish a responsible position in a market if customers get excellent pricing before performing the service. The consumer benefits from a straightforward cost structure, while the business benefits from a predictable income stream.

Shop in shop:

A store-within-a-store, sometimes known as a shop-in-shop, is an arrangement in which a retailer leases out a portion of its retail space to another business to operate another independent store. This arrangement is prevalent with gas stations and supermarkets. In addition, numerous bookstores collaborate with coffee shops since consumers often want a spot to relax and enjoy a beverage while browsing. Frequently, the shop-within-a-store is owned by a manufacturer who operates an outlet inside a retailer's store.

Sponsorship:

In most instances, support is not intended to be philanthropic; instead, it is a mutually beneficial commercial relationship. In the highly competitive sponsorship climate of sport, a business aligning its brand with a mark seeks a variety of economic, public relations, and product placement benefits. Sponsors also seek to establish public trust, acceptability, or alignment with the perceived image a sport has built or acquired by leveraging their connection with an athlete, team, league, or the sport itself.

Enterprise unbundled:

Unbundling is a business practice that recognizes that a company may have three primary focuses: client connections, product innovation, and infrastructure. Moreover, three of these elements may coexist in big businesses, creating a complex model that needs significant resources to operate effectively. Thus, unbundling is a crucial idea for any enterprise's future success. Additionally referred to as deconstruction or disaggregation, this benign word refers to a dominating force that propels digital change into the heart of whole sectors.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Target the poor:

The product or service provided here is aimed towards the bottom of the pyramid rather than the top. The target of the flawed business model is a financially feasible strategy that helps low-income communities by integrating them in the value chain of a firm on the demand side as customers and consumers and the supply side as producers, entrepreneurs, or workers in a sustainable manner. While the business earns a little profit on each product sold, it profits from the increased sales volume often associated with a large client base.

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Pay as you go:

Pay as you go (PAYG) business models charge based on actual consumption or use of a product or service. Specific mobile phone contracts work on this principle, in which the user may purchase a phone card that provides credit. However, each call is billed separately, and the credit balance is depleted as the minutes are used (in contrast to subscription models where you pay a monthly fee for calls). Pay as you go is another term for pay & go, pay per use, pay per use, or pay-as-you-go.

Tiered service:

Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements. Such systems are widely used in the telecommunications industry, particularly in the areas of cellular service, digital and cable television, and broadband internet access. Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Layer player:

Companies that add value across many markets and sectors are referred to be layer players. Occasionally, specialist companies achieve dominance in a specific niche market. The effectiveness of their operations, along with their economies of size and footprint, establish the business as a market leader.

Historically, developing a standard touch sales model for business sales required recruiting and training a Salesforce user who was tasked with the responsibility of generating quality leads, arranging face-to-face meetings, giving presentations, and eventually closing transactions. However, the idea of a low-touch sales strategy is not new; it dates all the way back to the 1980s.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

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