business model vs commercial model

Both 'business model' and 'commercial model' are correct phrases, but they are used in different contexts. 'Business model' is a widely used term to describe the way a company creates, delivers, and captures value, while 'commercial model' is more specific and refers to the way a company generates revenue and profits.

Last updated: April 01, 2024 • 153 views

business model

This phrase is correct and commonly used in business contexts to describe how a company creates, delivers, and captures value.

The term 'business model' is used to describe the overall strategy of how a company operates, including its revenue sources, customer base, products or services, and value proposition.

Examples:

The company's business model focuses on subscription-based services.
Understanding the business model is crucial for investors evaluating a company.
They are exploring new business models to adapt to changing market conditions.
The business model canvas is a tool used to visualize and develop business models.
A successful business model can lead to sustainable growth and profitability.

Show examples from the web [+]

So we revised our business model.
The Commission analysed this business model.
Contracting is an EU-wide business model for achieving resource efficiency, particularly through energy savings.
It is up to economic actors to decide their business model.
It's actually the oldest business model.
Under current EU competition legislation the independent retailer group is not clearly recognised as a separate business model.
Our business model works for producers not for distribution companies.
It's not a sustainable business model.
Prison would put a real crimp in my business model.
It's part of my business model.
The business model of the points poste has not necessarily been available since 1992.
The business model of the airlines is linked with secondary, regional airports.
LBBW's revised business model is a decisive factor in ensuring that the restoration of viability is realistic.
It is not up to us to enforce a particular business model.
Both of which serve its vision and its business model.
It is also crucial to assess the conflicts of interest in this business model.
Freemium business model is very popular, especially among start-ups.
Focusing of investment and business model on multimedia and digital sectors
Canadian Solar also used in their business model one unrelated original equipment manufacturer ('OEM').
ReneSola argued that such a business model had not been explicitly prohibited until November 2014.

Alternatives:

operating model
revenue model
value proposition

commercial model

This phrase is correct but less commonly used than 'business model'. It specifically refers to the way a company generates revenue and profits.

The term 'commercial model' is more focused on the revenue-generating aspects of a company's operations, including pricing strategies, sales channels, and distribution methods.

Examples:

The company's commercial model relies on direct sales to customers.
We need to review our commercial model to improve profitability.
The commercial model should align with the overall business strategy.
Understanding the commercial model is essential for optimizing revenue streams.
The commercial model may need to be adjusted to respond to market changes.

Show examples from the web [+]

Les Cahiers guessed that the commercial model would be no longer effective.
Our business-focused commercial model is directly aligned to cost and utilisation.
"Munny" as a commercial model:
Two different zappers were used: A commercial model and a specially engineered model.
These rules will give the payments industry three years to put forward a long-term commercial model for automated debits that abides by competition rules.
When long term staphylococcus infections were present that did not clear up with conventional antibiotic treatments, the engineered model seemed to be substantially more effective than the commercial model.
Off the coast of Oporto in Portugal, the first commercial model for a power station powered solely by the movement of sea waves has been created: Pelamis, which in ancient Greek means 'sea snake'.
The commercial model was normally held for 7 minutes with 15-20 minute breaks, while the engineered middle was normally held for 15 minutes with 10 minute breaks.
Professor Hertz played an influential role in the development of (RED), an innovative commercial model to raise money for people with AIDS in Africa, having inspired Bono (co-founder of the project) with her writings.
They must not enshrine in legislation a contractual commercial model that may evolve along with the reform of the railway system.
The one that pestered my dad for you to be the commercial model was me.
Trivago has a very good ranking in Europe, America and Canada market. It applies a Pay per Click commercial model and suggests the WuBook Online Reception to its visitor to book your rooms directly.
These airlines apply an economic and commercial model which consists in keeping operating costs to a minimum and passing on these savings to passengers through low fares.

Alternatives:

revenue model
pricing strategy
sales channels

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