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Latest Business Terms

Subscription business model
The Subscription business model is a revenue model that asks customers to pay a fixed fee according to a period such as "monthly fee" and continuously provides services. Subscriptions to newspapers and magazines are typical models of subscriptions. The main features of the subscription model are: Set a usage fee ...
Add-on
Add-on is mechanisms for generating revenue from “additional sales” of certain products and services . For example, in the standard in-flight services of Japanese airlines such as "JAL" and "ANA", drinks and meals are usually provided free of charge because the service price is substantially included in the airfare. On ...
C2C
C2C is an abbreviation of (Consumer To Consumer), which is a business model that mediates the buying and selling of products and the sharing of information between consumers and individual consumers. C2C is also known as "CtoC" or "personal transaction". With the spread of the Internet and mobile devices, the ...
MTO
MTO is an abbreviation of "Make To Order", which is a business model of manufacturing after receiving an order from a customer . A typical example is a supplier company that develops and manufactures parts for products sold by manufacturers of automobiles and electronic devices. In the case of Toyota ...
Revenue sharing
Revenue sharing is a profit model in which companies cooperate to do business and distribute profits among companies according to a predetermined distribution rate. Revenue share has been widely used in recent years as a contract form to reduce risk, especially in IT / Web related system and application development ...
BTO
BTO is an abbreviation of "Build To Order", which is a manufacturing industry that carries out "make-to-order manufacturing" in which products are prepared in the state of parts so that they can be customized, and after receiving an order, the product is assembled according to the customer's request. It is ...
Direct selling
Direct selling is a business model in which the manufacturer's company sells the product directly to the customer without the intervention of a wholesaler . Traditional companies that sell products directly by setting up stores in factories and unmanned vegetable sales offices also have this business model. By reducing the ...
Cherry picking
Cherry picking is a business model that concentrates on specific demand for the businesses of existing companies that cover a wide range, such as airlines, transportation, telecommunications, and electric power services. >. The name of this model comes from "selecting only ripe cherries from the harvested cherries", which means that ...
Personalization
Personalization is a business model that provides products and information that are valuable to each and every customer. It can be said that it is a business model that is the opposite of entering a large market with general products. This concept was introduced in the book "The One to ...
OEM
OEM is a business model that outsources the manufacture of products to other companies and sells the products under their own brand . Many PB products (Private Brand products) sold at major supermarkets and convenience stores adopt this business model. The advantage of adopting OEM for distributors is that they ...

Popular Business Terms

Divisional structure
Divisional structure is one of the basic organizational structures as well as functional organizations and matrix organization ,and this organization is divided into roles according to the products and services provided.(ex. Television Division, Refrigerator Division, etc.) In addition, it is applied not only to each product or service, but also ...
Functional structure
Function structure is one of the structures of a management organization, and refers to an organization that is organized according to work content such as development, sales, production, personnel, and accounting, along with divisional organization and matrix organization. This is the basic organizational structure of. It is said that the ...
Economies of scale
Economies of scale means that if production scale is expanded, the average production cost per unit of product will decrease as the production volume increases. Therefore, it is widely used in industries that require large-scale production equipment in one business. By pursuing one business more deeply, the know-how and technology ...
Modularity
Modularity is the construction of complex products and business processes with small subsystems that can be designed independently and function in a unified manner as a whole . By the way, the antonym of modularization is "integration". For example, I will explain the relationship between a word processor and a ...
Economies of scope
Economies of scope is an economic phenomenon in which the cost per unit of a product or service decreases as the types of products and businesses handled increase. In other words, the cost per unit is lower if one company conducts multiple businesses and shares management resources rather than manufacturing ...
Economies of density
The economy of density is the economic effect that opening stores intensively in a specific area reduces costs such as transportation costs and advertising costs . In order to obtain the economic effect of density, the minimum requirement is whether or not it is possible to secure sales that exceed ...
マトリックス組織
The matrix organization is an organizational structure that has the characteristics of both a divisional organization and a function-based organization. A matrix means a matrix in mathematics in which numbers and letters are arranged vertically and horizontally, and as shown in the figure above, it has a dual structure in ...
フリーミアム
Freemium is to provide basic services for free to acquire many customers, and to have some users purchase advanced features and easy-to-use paid versions to increase profits . Business model. Freemium is a coined word that combines "free" and "premium" created by American investor Fred Wilson, and was written in ...
Cloud
Cloud (official name: cloud computing) is a system located in another location via the Internet line, instead of managing data such as images and texts by physically placing a server at home or in the office. Refers to the mechanism to use. It's not the name of the technology. In ...
ロングテール
The long tail is a business model that not only sells well-selling products, but also has a large number of dead-line products that hardly sell, and matches dead-line products with people who have their needs to increase sales. Until now, it has been thought that it is the best-selling products ...

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