Most Viewed 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 to each region and customer. Basically, it is an organizational structure adopted by companies engaged in multiple businesses. The division organization was devised by DuPont and it is believed that Alfred Sloan applied to General Motors. The divisional organizational structure is divided into three main types, and the type of ...
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 origin of the functional organization is Germany, and it is said that the division of corporate activities into engineering (research, development, production) and business (marketing, sales, etc.) is the beginning of the functional organization. After that, French business scholar Henri Fayol subdivided it into six functions: technical, sales, finance, accounting, ...
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 of the company will be accumulated and the cost of production per unit will be reduced. Therefore, the larger the production scale, the lower the cost per unit and the higher the profit of the company. In industries where economies of scale are working, it is often difficult for new ...
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 PC. , A word processor is an "integrated" product that functions by integrating input and printing for creating documents into one unit, but a PC has a fixed OS and "document creation software", "spreadsheet software", and "game software". It is a "modularized" product that can be created and used separately ...
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 one product individually. Unlike economies of scale, economies of scale aim to reduce production costs by expanding production in a single business, while economies of scope are a combination of multiple businesses. With the aim of saving production costs in , and pursuing economies of scope is to share some ...
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 the operating costs of stores and distribution centers. Opening the first store in Kanto, the second store in Tokai, and the third store in Kansai seems to be effective for brand advertising, but it is actually an inefficient example. For example, if the central area of ​​the business is Kanto, ...
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 which divisions are organized vertically and organizations by function are organized horizontally. Although it is based on a divisional organization, each function within the division is also organized as a company-wide organization. The overall organization of the organization should not be centered on a single division axis, but should also ...
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 detail in Chris Anderson's own book "Free". It became known at once. Until now, there have been "free models", and the mainstream was to make profits from advertisers rather than from viewers and readers, such as radio and free papers, but as IT advances, the cost of content and services ...
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 other words, it is a service that benefits from connecting to the Internet, and conversely, most services cannot be used unless it is connected to the Internet. You can access and do business from various terminals such as smartphones and tablets anytime and anywhere without downloading what was previously downloaded ...
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 that bring profits to the company, not the deadly products, but due to the spread of the Internet , the promotion cost of deadly products is increasing. It almost disappeared. The long tail was published by Chris Anderson, editor-in-chief of the American business magazine "Wired". When the sales volume of ...
Mass customization
Mass customization is mass production while selling products and services that meet the needs of individual customers . Mass means "mass production" and customization means "customization". Simply put, it means "custom-made mass production". In the 1990s, Joe Pine wrote "Mass Customization Revolution: Innovative Management Aimed at Reengineering", which was still difficult to realize when the concept became widespread, but as a result of recent technological advances, mass customization Is now possible. Making products that match customer tastes at low cost is a top priority for the manufacturing industry, and although custom-made products that meet customer demands increase customer satisfaction, an ...
De facto standard
De facto standard is a standard that has established a dominant position through competition in the market and has become the “virtual” industry standard as a result . In general, in newly launched markets, it is often the case that multiple leading standards are rife. However, in the midst of market competition, products based on one standard will dominate the market. As a result, the predominant standard has become virtually recognized as an industry standard, despite the lack of official certification, and such standards have been referred to as the " de facto standard". ". "De facto" means "de facto" ...
Diversification
Diversification is expanding the scope of a company's products and markets by adding new businesses to existing businesses . It is a type of product market strategy advocated by Ansoff, and is a management strategy that aims to grow by launching new products in new markets. This will be achieved by expanding the management resources of a company to new products and markets, and by expanding and developing existing management resources. It is positioned as one of the important strategic options for corporate growth, and is often promoted with the concern that the profitability of existing businesses will decline, or ...
O2O
O2O is an abbreviation of "online-to-offline" , and as the name suggests, takes some approach to consumers via the Internet to bring them to real stores. Business model . An easy-to-understand example of O2O is a coupon site, where restaurants and hotels recruit purchasers of coupons for a limited time on the coupon site, and the coupon is issued when the specified number of people decided by the store wishes to purchase. It is a mechanism called. Since the number of people can be freely set and the conditions cannot be met, the actual store can provide the coupon service ...
日本のフィンテックサービス
FinTech is a coined word coined from "Financial" and "Technology" and refers to financial services that make full use of IT. It is also called " Neobank " because it provides services such as settlement, financing, asset management, and stock trading that traditional financial institutions have been responsible for instantly across national borders. It is a concept that has developed mainly in the United States since the Lehman Shock in 2008, and by utilizing IT such as the Internet, cloud, and big data for financial services that were almost monopolized by financial institutions, it becomes more convenient and more convenient ...
プラットフォームビジネス
Platform business model is a business model that makes a profit by providing a "place (platform)" for buying and selling and exchanging information . Also known as "platform strategy", "platform model", or "multi-sided platform" , it attracted attention because it was proposed by Andrei Hagiu, an associate professor at Harvard Business School in 2006. I did. By creating a "place" for the purpose of buying and selling and exchanging information, we gather people and companies with diverse needs such as sellers and buyers. The platform itself has existed for a long time, but with the spread of the Internet, new ...
SPAとは
SPA(Specialty store retailer of Private label Apparel) is the business model that completes everything from standardization to sales of own-brand products in-house. Until then, apparel manufacturers took the lead and trading companies, wholesalers, and retailers played their respective roles, but now retailers are in charge of planning, designing, manufacturing, material procurement, and distribution. It is a business model that has permeated mainly in the fashion industry, and as SPA is translated as manufacturing and retailing, a retailer that handles clothes and fashion miscellaneous goods takes the lead in product planning and design, manufacturing, and sales. I will. In the past, ...
Economies of speed
Economies of speed is the economic effect that can bring economic benefits by speeding up the business and its management. Specifically, it will increase the speed of product development, production, and sales, speed up information acquisition, work speed, product development speed, and product turnover speed, and companies will enjoy the benefits of increasing effectiveness and efficiency. I will. For companies, by quickly developing their businesses and operations, it is possible to quickly identify top-selling products and dead-selling products, and to secure profits by quickly adding top-selling products to the field. Advantage of starting lineup The advantage of the starting lineup ...
Razor and blade Model
Razor and blade Model is a business model in which the main body of the product is provided free of charge or at a low price, and accessories are continuously sold as consumables to maintain profits. This name is derived from the adoption by Gillette, a razor maker that sells men's shavings. Examples and companies that utilize the Gillette model are as follows. (Main body → Accessories) Razor and replacement blade As mentioned above, this is the product from which the Gillette model was derived. Nowadays, the sales style of this men's razor is common, but in the past, products ...
Lean canvas
Lean Startup is one of the methodologies for increasing the success rate of entrepreneurship and new business development. As a specific example, we emphasize repeating business hypothesis testing quickly without spending a lot of money , and business ideas and product planning while grasping customer reactions in a short period of time. It means to correct the trajectory many times . Even in the United States, which has a positive awareness of entrepreneurship, it is said that only 3 out of 1,000 companies can survive the start-up period after the company was founded. Against this background, "Lean Startup" was developed ...
Growth–share matrix
Growth–share matrix, or product portfolio matrix, evaluates the attractiveness of a business and the competitiveness of the company for each business, distinguishes between businesses that generate cash and businesses that require investment, and then clarifies the positioning of the company. It is intended to be positioned as one of "Cash cows", "Stras", "Question marks(problem child)", and "Dogs" . After positioning, we will decide the future strategy of each positioned business. Invented by the Boston Consulting Group in 1970, it finds surplus management resources in terms of profitability, investment necessity, etc. in each independent business of a company, and decides where ...
Incentive
Incentives are motivations and motivations that change employee decision-making and behavior, and are typically monetary compensation. However, monetary compensation is not the only incentive, and as will be described later, bosses, colleagues, individual evaluations, ideas, values, treatment, etc. are also incentives , and academically, "Maslow" It is deeply related to the "five-step theory of desire". Translated as "incentive" in Japanese, if the incentives required by employees can be fully met, the organization's efforts for employees, the reduction of turnover rate, or the mission to be beneficial to the entire organization It is said that it can create a feeling. The ...
ボランタリーチェーン
Retailers' cooperative is a business model in which individual independent retailers build an organization together with retailers with the same purpose to create a chain store-like mechanism . There is a franchise in a similar business model, but in Retailers' cooperative,the franchise stores themselves form the headquarters, whereas in the franchise, the headquarters and the franchisees are separated. Strengthening sales capabilities by selling products at multiple retail stores, and at the same time collecting information obtained in daily sales activities at the headquarters. It can be said that the strength of Retailers' cooperative is that they can efficiently carry out ...
Synergy
The synergy is to exert a synergistic effect between management resources by combining different management resources. The effect of combining the management resources of two different businesses makes 1 + 1 more than 2 . Specifically, when a company launches a new product, the existing sales channel or This refers to cases where the initial investment cost can be reduced by utilizing production equipment. As a result, the new profits will be greater than building production equipment or building sales channels from scratch. In addition, there are cost reduction effects by sharing equipment and improving purchasing negotiation capabilities, and mutual ...
Digitization
Digitization means that traditional businesses will change by utilizing digital-related technologies and methods such as IT and Web technologies . The meaning of "changing analog to digital" in digitization is to change the work that was previously done in analog so that it can be done using digital, and it is easy for many people to imagine. "Paperless", which reduces the amount of paper used in the business scene by digitizing invoices and contracts, which used to be done using paper media, also corresponds to digitalization. In addition, digitization also includes "Web conferencing" and "online business negotiations," in which meetings ...
Vertical integration
Vertical integration is a business model in which all processes in the supply chain from product research and development to manufacturing and sales are carried out within the company group. If the company does not have a process to manufacture or sell products, it may acquire the resources of other companies and integrate them by acquiring a company. When it comes to vertical integration, traditional manufacturing industries such as the automobile industry are known as typical examples, but since the 2010s, such as GAFA (Google, Apple, Facebook, Amazon) and Netflix. Digital companies are also expanding their markets through vertical integration ...
Network effect
Network effect means that the size and frequency of use of a user affects the utility value of the product or service . For example, if you ask "Why are you using Facebook or Twitter?", You will answer "because people around you are using it" and "because you can't interact with people without it." In such cases, it can be considered that the utility value is determined not by the function or quality of the product or service, but by the number of users or terminals. The number of users and terminals is called " network scale ". The network ...
Open source
Open source is a software development method in which source code (computer programs) is open to the public and programs are developed by an unspecified number of volunteer developers . Software developed by open source is called OSS (Open Source Software) . Since the source code of software is the crystallization of technical capabilities and know-how, it is usually kept secret by companies. For example, many of Apple's software source coats aren't open. OSS, on the other hand, is often free to use, and programs are allowed to be modified and redistributed. And it is being improved day by day ...
Crowdsourcing
Crowdsourcing is a service that mediates between a "company" who wants to procure goods and services necessary for business and an "individual" who undertakes the work . Until now, as a means for companies to procure internal and external operations to the outside, there was "outsourcing" outsourcing to other companies, but crowdsourcing is outsourced to individuals. Traditionally, it cost a lot of money for a company to find an individual outsourcer, but with the advent of crowdsourcing platform businesses on the Internet, outsourcing from entrepreneurship to individuals has exploded. "Crowdfunding" is a fund-raising version of crowdsourcing. Competition type The competition ...
BOP
BOP is an abbreviation for "Bottom of the Pyramid" and is a idea of ​​doing business targeting low-income people in emerging countries who live on less than $ 3,000 a year . The population belonging to this BOP group is said to be 72% (about 4 billion people) of the world population, and the market size is said to be about 5 trillion dollars. This is said to be on par with Japan's real GDP. The BOP class in emerging countries has a large population volume and is attracting attention as a new market in the world economy. The main ...
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 a business model. We make full use of the Internet, etc., and provide products that meet the needs of our customers at low prices. In conventional large-scale factories, low-cost products could be mass-produced, but it was not possible to make different products one by one. However, due to improvements in ...
No-frills
No-frill is a business model that eliminates extra services as much as possible , but does not reduce the quality of core services, and provides users with a reduced price as much as they are omitted. By narrowing down to the minimum necessary services, we will attract a customer base that dislikes waste. Non-frill means "no decoration", and there are various ways to omit services depending on the company. In many companies, airliner companies sacrifice comfort to carry as many passengers as possible. Currently, services with no-frills as a business model are spreading not only to the passenger aircraft industry ...
フランチャイズチェーン
A franchise is a company that has excellent products and services, and provides people and businesses aiming to open independently with the right to sell their products and services, trademarks, collation, and management know-how, with the aim of developing multiple stores. It is a business model that earns royalties while doing so. The side that grants the rights is called "franchisers" or "headquarters" , and the side that grants rights is called "franchisees" or "merchant" . , According to the franchise agreement, the franchisor establishes rules, deployment methods and regions of deployment, and gives the franchisee the obligation and right ...
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 it is a business model that targets only certain markets and customers. The main features of cherry picking are as follows. By targeting a specific group from the customer base of the existing business, you can earn a certain amount of profit without incurring investment costs such as business start-up ...
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 projects such as EC sites, game software, e-learning systems, and reservation systems. Normally, when developing a system, the business is carried out by two or more companies on the ordering side and the ordering side, but in revenue sharing, at that time, the ordering side receives the development cost from ...
Sharing economy
The sharing economy is a service or society that shares unused goods and labor on the market on a timely basis . In the first place, "share" has two meanings. The first meaning is " sharing things between individuals ". Car sharing and clothing sharing services are included in this meaning. The second meaning is " share the workforce ". Crowdsourcing, which is increasingly used by companies, is a service that matches companies that want to order jobs with individuals who want to receive orders, but since this is realized by individuals working for multiple companies, from the perspective of ...
Rock-in
Lock-in is a general method for companies to retain customers in order to build long-term relationships with existing customers . It is also called "lock-in strategy" in management terms and "lock-in effect" in economic terms. For example, when a consumer purchases a product of some manufacturer, when the product is replaced, the product of the same manufacturer is used. It is the effect of purchasing and maintaining the relationship with the customer. The reason for this is that if you change the manufacturer when you buy a new one, the cost (switching cost) required at that time will be high, ...
Multi-level marketing (MLM)
Multi-level marketing(MLM) is a business model in which salespeople who sell their own products are set up outside the company, the salespeople are hierarchized vertically, and the higher-ranking person obtains a sales margin from the lower-ranking person . Also known as " network business " or " MLM ", top salespeople scout new salespeople from their customers and sell them in a network. Increase channels and new customers. In the MLM, "the more excellent salespeople in the lower hierarchy, the higher the salespersons will benefit", "because the customer becomes a salesperson, the experience stories and other convincing powers are high" ...
Business ecosystem
Business ecosystem is a term that means a group of platform operators and complementary operators . For example, a product called iPhone consists of a platform operator called Apple, which has iOS software and terminals (iPhone), and a complementary operator that provides apps, accessories, communication lines, and so on. In recent years, the platform business has been attracting attention, but the term "ecosystem" is a combination of the operator responsible for the platform and the complementary operator for that operator, " one ecosystem (ecosystem) . By metaphorically understanding it, it is a way of thinking used when considering the strength ...
Open business
Open business is a business model that creates value that cannot be achieved by individual companies by collaborating with other companies and sometimes consumers on research and development that is normally done only by the company . R & D of new technologies and new products is monopolized by the company and is usually carried out in a closed environment, but in recent years, the life cycle of technologies and products has become shorter, and more speeding up of R & D is required. It came to be. Therefore, by opening up our own technology and developing products, an open ...
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 margins for wholesalers and middlemen, you can lower the price of products, and by increasing profits, you can invest in equipment expansion of factories and improvement of product quality. The main feature of direct sales is that one company handles product planning, manufacturing, marketing, and sales in a one-stop manner ...
Customer loyalty
Customer loyalty is a revenue model that retains customers by awarding points according to purchase amount and customer rank, and providing services to promote continuous use. "Royalty" is a word that has meanings such as loyalty, loyalty, loyalty, and patriotism. The literal translation of customer loyalty is "customer loyalty." There are many ways to increase customer loyalty, but in this article we will focus on the points and mileage that are the easiest to realize the effect psychologically. A typical example of this revenue model is the airline's frequent flyer . American Airlines was the first airline in the world ...
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 the other hand, LCC (Low-cost Carrier) "Peach's airfare is cheaper than JAL and ANA, but all drinks and meals offered on board are provided for a fee. The cheapest plan is" Checked baggage is also charged for "Simple Peach". In addition, the statistical analysis software " SAS Analytics Pro " ...
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 Motor Corporation, there are 219 supplier companies in Japan alone, including Aisin Seiki and Denso. (As of 2020) The supplier company receives an order from the manufacturer and undertakes the process from development to manufacturing of the parts, so it has the advantage of no inventory risk . The difference ...
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 can work with manufacturers with specialized technology to advance into product categories that cannot be developed by themselves . For example, some original cosmetics sold in clinics and sports clubs are labeled as "quasi-drugs." It contains a certain concentration of ingredients that are approved by the Ministry of Health, Labor ...
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 number of platform operators and services that mediate C2C has increased rapidly, but in reality, C2C is a business model that has existed for a long time. Flea markets and garage sales, which are often held on weekends, are also interpersonal transactions. On the other hand, a platform that mediates ...
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 One Future" by marketing consultants Don Peppers and Martha Rogers. It is something that differentiates you through experiences such as services . Personalization has become possible to provide with high accuracy due to the development of IT. A typical example is a web search engine. Search engines such as Yahoo! ...
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 for a certain period, provide services, and earn continuous profits Since it is a flat-rate contract, you can reduce the cost of earning revenue It is necessary to provide the benefits of choosing a fixed-term contract, such as discounting the amount of money and adding services to customers. There are ...
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