Types of Business Model for MyGiftShopper.com - Essay Example

Running Heading: Business Plan Comments Business Plan Comments Business model of the MyGiftShopper.com has been explained in a professional way as the team has worked hard to present the four business models and their implications on the firm. The team prepared a tailored business model canvas (BMC) for each of the type of business model and then their strengths, weaknesses, opportunities, and threats were analyzed in order to identify which business model would be more suitable for the firm and which business models should be accepted and rejected.

After analyzing each of the business model, the team identified that MyGiftShopper.com should retain two models whereas the other two models were rejected. The important thing that the team has discussed in the business plan is that they have related each of the business models with the proposed firm and analyzed whether the business model should be profitable in the long run or not. 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 much better job as they were able to analyze how the market influences MyGiftShopper.

com from 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. Therefore if the team is able to segment its target market more appropriately then it would be to present its marketing strategies in a better way.

The competitors analysis and offerings of the competitors have been discussed in good maner and a self-explanatory table is also attached that discusses important characteristics of competitors like similarity in services, methods to order the services, fee charged and target customers. Also the team has discussed important statistics about the market including market growth rate, potential in the market etc. The team has also discussed the strategies for the firm to enter in the market and then how it will grow with the passage of time.

Marketing four Ps has been discussed in detail however it would have been better if the team had also presented further details about how MyGiftShopper.com would be promoted. Although, the promotional channels have been presented but the priority of each channel should also have to be discussed. The team has discussed the pro-forma financial projections; however they have neglected different costs associated with the company which might show higher profits. Also the revenue growth rate is far higher in comparison to the industry growth rate and market potential despite of having some competitors in the industry.