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Business Model Patterns Explained

Osterwalder and Pigneur (2011) propose five business model patterns derived from the analysis of over 200 companies, which include disaggregation, long tail, and multilateral platforms. These patterns serve as reusable solutions to common business challenges and can be creatively combined to develop effective business models. The document emphasizes the importance of understanding these patterns to enhance business strategies and customer engagement.
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0% found this document useful (0 votes)
18 views24 pages

Business Model Patterns Explained

Osterwalder and Pigneur (2011) propose five business model patterns derived from the analysis of over 200 companies, which include disaggregation, long tail, and multilateral platforms. These patterns serve as reusable solutions to common business challenges and can be creatively combined to develop effective business models. The document emphasizes the importance of understanding these patterns to enhance business strategies and customer engagement.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Business model patterns

The modeling of a business would not be complete if it did not fit one of the patterns.
of models proposed by Osterwalder and Pigneur (2011). These patterns are regularities
that arise from the experience of more than 200 companies around the world indicating the
best strategy for tackling a venture, according to the type of business intended
develop. There are five patterns of business models; in their pure version, they stand out the
following: disaggregation, long tail, and free and open multilateral platform. At the time
to put them into practice, one can use a single pattern, or two or more; creativity, the
Ingenuity and validation with the market will determine the best combination.

Business modeling with patterns

References
LESSON 1 of 2

Business modeling with patterns

Osterwalder and Pigneur (2011), in their book Business Model Generation, propose 5 patterns of business models.
businesses. These patterns are based on finding certain similarities between businesses, in relation to their
characteristics, their behaviors or how they organize the blocks of the Canvas.

Osterwalder recovers the notion of a pattern from architecture. The architect Christopher Alexander, in the book The
Timeless Way of Building proposes the use of architectural patterns to improve the quality of buildings that are
they were building. The proposed scheme is as follows: effective and replicable solutions to similar problems and
Recurring. Twenty years later, the concept was revived by engineering to describe solutions to problems.
common in software design, known as design patterns (Álvarez Rodríguez, 2006).

Recovered the term for the development of new businesses, it can be said that patterns are solutions to
recurring problems in a specific context.

According to Álvarez Rodríguez (2006), 'the specification of a pattern allows communication of the experience and the

knowledge in an area of interest (p. 401).

They are generic models based on their effectiveness in solving similar problems in the past; their value lies in
in what they are reusable, that is to say, they are applicable to different problems. In the case of this subject, it can be said

They are models applicable to different businesses.

These models will allow the analysis of variations in the responses of the different blocks of Canvas: how to charge and to

Who? How do I relate to the client/consumer? What activities should I focus on? Among others.

These patterns can be combined and, above all, be a source of ideas for business models themselves. They are not
they must be applied automatically, but must be taken as proven and effective models that can be
replicated in the combination of elements of a business model, totally or partially. Its uncritical reproduction
does not guarantee success. They are, rather, a source of inspiration to creatively devise new business models.

The proposed patterns are the ones listed below:

1 Customer relationship-focused disaggregation, product innovation, or infrastructure.

2 Long tail.

3 Multilateral platform.

4 Free (or free) for advertising, freemium, or bait and hook.

5 Open —from the inside out or from the outside in—.

Disaggregated businesses

Companies, according to Hager and Singel (cited in Osterwalder, 2011), carry out three distinct types of activities.
What the authors propose, according to the concept of disaggregation, is that companies should focus on one of
those three functions or generate different entities to focus on each one; this is logical, especially if you
consider that when a venture starts, it is advisable to focus its efforts on a single type of
activities.

According to the concept of disaggregation, there are basically 3 types of ventures; depending on what it is
focused on the business, the entrepreneurship can be centered on the relationship with the customer, on innovation
product or in the infrastructure.

Centered disaggregation:
THERELATIONSHIPWITHHIM THEINNOVATIONOF
INFRASTRUCTURE
CLIENT PRODUCT

Efforts are directed towards acquiring clients and establishing a relationship with them. Companies that provide the
telephone service, in general, and mobile service, in particular, are an example of this. They are constantly seeking
new clients and try to establish an increasingly close relationship with them.
The most important characteristics of the business model canvas are the following:

The company focuses on strengthening its channels.

The value proposition is very focused on the benefits it provides, associated with its products or services.

In the cost structure, there is a significant expense in acquiring new customers, mainly in
marketing and communication.

Alliances are essential, as they provide the products and services, and the infrastructure for
to shape the value proposition.

The key resources and tasks focus on acquiring and retaining customers.

The idea of these models, centered on the relationship with the customer, is to add the greatest number of products.
taking advantage of the customer's trust. The goal is for them to spend as much money as possible on the
value proposition.

THERELATIONSHIPWITHHIM THEINNOVATIONOF
INFRASTRUCTURE
CLIENT PRODUCT

The entrepreneurship focuses on continuously launching new products and services to the market.
Example: companies that manufacture mobile phones are constantly launching new products to the market.
to attract new clients.

The most important characteristics of this aspect are the following:

It is important that key activities are focused on acquiring talent and managing research.
and development that will allow the value proposition to be innovative.
At the same time, this generates high costs in specialized human resources, but it also allows for charging.
higher prices due to the novelty of the product/service.

Many times, these models have other companies as clients, companies that focus on the relationship.
with the client, for example.

THERELATIONSHIPWITHHIM INNOVATIONOF
INFRASTRUCTURE
CLIENT P R O D U C TO

The organization specializes in managing high volumes of repetitive tasks.


The characteristics of the pattern are listed below:

The business activity and resources are focused on the management of platforms or infrastructures.

This type of business generally has a high percentage of fixed costs, mainly focused on the
activity of providing services to clients who are generally other companies.

As they are almost always commodities, prices are set by the market. They have low profit margins.
for which they require large volumes.

For example: outsourcing companies, like call centers, specialize in managing large
quantities of people who process millions of inquiries per month for their clients. Another example is the companies
who are dedicated to providing telecommunications infrastructure: connectivity through fiber optic installations, networks
mobile phones, etc.

Each of these types of ventures, according to the breakdown, has different definitions regarding...
economic, competitive, and cultural aspects of the company. They can be combined, but it is advisable that they are clearly defined.

in different entities to avoid internal conflicts or inconvenient exchanges for the company
(Osterwalder, 2011).
On page 59 of the book Business Model Generation (Osterwalder and Pigneur, 2011), a table is presented.
comparative analysis of the three types of business models of the unbundling pattern, contrasting each one according to the

economy, culture, and competition; then, actual cases are analyzed that are recommended to be read to finish
understand this topic.

Long tail businesses

The long tail business model was conceived by Chris Anderson in an article in Wired magazine.
(cited in Osterwalder, 2011). Initially, it was a concept related to the content industry and the
entertainment. Osterwalder (2011) takes it up as a business model pattern.

Generally, companies focus on selling large quantities of the most popular products. In contrast, the
long tail model is based on selling a small quantity of various products to many niche buyers
different. As a result, total revenue from diversified sales is equal to or greater than that of the products of
large volume of sales (Osterwalder, 2011).

Traditionally, companies have focused on having a few items available and trying to sell a lot.
quantity of that item; let us take as a case a company 'A' that launches 10 models of shoes in a
season on the market and sells 10,000 pairs of each model. The total results in 100,000 sneakers. In the model
long tail, a 'B' company of footwear could have many different models to sell in small volumes of each.
one, but in the total sum reach an amount equal to or greater than company "A".

To complete the example, let's say that company 'B' makes 50 different models of shoes and sells 2000 pairs.
per model to reach the same 100,000 pairs of shoes. A company sells 10,000 per model, because they are
designs for the mass public, while the second company designs shoes according to tastes and
requirements of different types of clients: people who wear size 46 or larger, have wide feet, want designs
relacionados con bandas de rock, por nombrar algunos ejemplos. Esta última, entonces, ha logrado vender una gran
number of pairs, but these, in turn, have been divided into different models that, taken separately, do not
result in an interesting amount, although in the total volume, as we see in figure 1, it implies a total of
important sales.
Figure 1: The long tail model

Source: Navarro 2012, [Link]

Traditionally, companies focused on selling a large quantity of a few very popular products, but what about
What if we offer a product for every underserved niche? As a result, we will have fewer sales per product, but,
multiplied by each variety, we will obtain a total sales volume similar to or higher.

The long tail model is possible today due to the following reasons:

Democratization of production: more and more people, with little investment, can produce.
contents (for example: recording and editing a song or a video).

Democratization of distribution: through the internet, we can distribute content at prices


very low.

Connection between supply and demand: search engine algorithms and buying and selling platforms
they allow us to connect with the products or services that may interest us, based on our
characteristics as buyers.
This business model can be interesting if combined with that of multilateral platforms and connected.
buyers with sellers.

A typical business model, applying the long tail pattern, consists of the aspects listed below
continuation:

Strategic alliances: producers.

Key resource: platform.

Key activities: platform management. Acquiring products, customers.

Cost structure: development and promotion of the platform.

Value proposition: independent content and products or, as Anderson says, 'no hits' —for
referring to content or products that are not bestsellers.

Customer segments: there should be numerous segments so that the sum of the sales to each one
results in a profitable business.

Customer relationships: generally, long tail businesses tend to generate relationships


self-managed or automated with their clients —and, when it is a platform, also with the
producers— in order to have low customer service costs.

Channels: in order to make businesses feasible, the vast majority are conducted through the internet.
regarding communication and, to the extent that the product supports it, also distribution.

Sources of income: the vast majority of income comes from sales, but in case of being a
The platform, generally, is based on commission from sales, advertising, and subscriptions.
Although this model was conceived for content and entertainment companies, originally, it is possible
apply it to other businesses. In Osterwalder's book (2011, pp. 70-72) we find other cases that are recommended.
read: [Link] and Lego.

In the following article, you will find other successful examples.

Mandatory reading: 5 good cases of supply chain e-commerce


long

This article will provide you with examples of the most popular companies worldwide that have implemented
successfully the long tail pattern —Amazon, Lulu, eBay, Lego, Aprendeo—.

5 good long-tail e-commerce [Link]


315.9 KB

Source: Navarro, S. (2012). 5 good long-tail e-commerce cases [blog post]. Retrieved from

[Link]

Multilateral platforms

There are business models dedicated to connecting two or more interdependent customer or consumer segments.
La plataforma es el ámbito (físico o virtual) en el que se encuentran distintos grupos de clientes para realizar
transactions, and it is the platform responsible for promoting and facilitating interaction between the different segments of

clients. These segments are interdependent groups of customers and consumers that cannot exist without each other.
another (Osterwalder, 2011).
From a wholesale market to an online buying and selling site, multilateral platforms are a great
opportunity to undertake.

This model has existed since the time of the first barter fairs, markets where a person could trade
chickens for skins. Today, credit cards are also platforms that allow financing purchases and that
they relate consumers, businesses, and banks.

This business model has taken on new importance with the emergence of the internet, as it is much more
It's economical to create a platform on the web, and it is possible to grow quickly in terms of the number of users and transactions.

Osterwalder (2011) points out mass media as platforms. However, we consider that
the media do not fall within this classification, as long as they are the ones generating the information. A reader
compra o consume un diario no por la publicidad, sino por los contenidos que dispone. Por lo tanto, no son grupos
interdependent consumers (advertisers and readers). The case of Google Adsense, which connects, is different.
people who are willing to put ads on their websites in exchange for receiving commissions for each time
that a person clicks on that ad, and advertisers interested in being present on thousands of websites
to receive potential clients. Adsense, then, is a platform where websites (media of
communication) connects with advertisers (companies that advertise their products or services). This is a
excellent example of how an online platform can change an entire business like advertising: anyone who
having a website can generate advertising income with minimal effort; anyone can.
advertise on the internet on thousands of websites.

This example allows us to emphasize some of the main challenges of the platforms.
multilateral

CUSTOMERACQUISITION ACHIEVEBALANCE PRICEFIXING

In the movie Field of Dreams by Lawrence Gordon (1989), a voice said the following,
from the beyond, to the protagonist: 'If you build it, he will come.' It is common to find
entrepreneurs enchanted by this siren song. It is even more common among those who decide to generate a
multilateral platform as an internet business: to assume that the mere act of building the product,
Launching the business will make customers come as if by magic.
If in a business I have to worry about acquiring customers from a segment, in multilateral platforms
I will have to face the complexity of having to acquire clients from at least two different segments. For this, it is
It is necessary to ensure that we have the necessary skills to work at different levels.

It is common for consumers or buyers to be willing to browse the internet and make purchases, but we have
that getting the offering companies to be willing to do it too and, in doing so, be willing to resign
profit margin on transaction commissions for the platform. In any case, it tends to be more economical
to sell through a platform rather than having to develop a direct sales team.

Many entrepreneurs think that just developing a product or launching a platform is enough to
generate sales.

CLIENTACQUISITION ACHIEVINGBALANCE PRICEFIXING

Another great challenge of cross-platforms—often underestimated by entrepreneurs—is acquiring customers.


on one side and the other, in a balanced way. That is, if I build a platform where companies relate.
manufacturers of electrical equipment, I need to make sure that on the other side I will be acquiring buyers of
electrical equipment; if the company that offers, as time goes by, does not generate business on our platform,
will stop making the effort, no matter how minimal, to participate in it: maintaining a list of products and prices
updated, respond to inquiries from potential clients, upload photos and news about the products and the company, among others.
others.

On the other side, the same thing happens: if I log in to view electrical equipment on a platform and I only have one or two.
potential suppliers, it is most likely that I will never visit to see products for purchase again.

CLIENTACQUISITION ACHIEVINGBALANCE PRICEFIXING

One of the biggest challenges is how to set the prices for using the platform (whether it be a subscription, a
transaction fee, etc.). Commonly, as Osterwalder (2011) says in his book Business Model Generation
businesses, one strategy is to "subsidize" a group of customers to attract them and, in this way, generate critical mass
sufficient for the other group of customers to participate and, therefore, pay the price we need to sustain
the entire operation. Here, the challenge derived from this strategy is to correctly choose whom to subsidize.

To fully understand this pattern, it is recommended to read the cases of Google, Wii vs. PSP/Xbox, and Apple.
Book Business Model Generation by Osterwalder (2011, pp. 80-85).

Finally, we can establish some characteristics of the business model, following the pattern of the
multilateral platforms

Strategic alliances: since customer acquisition is a critical success factor for this type of
In business, alliances with mass media often allow for acquiring customers.
quickly, at least in one of the groups. It may also be important to have an alliance with
payment methods, so that the transaction can be completed within the platform. In addition, in the
In the case of products, logistics and shipping companies can establish alliances that improve the
experience and the transaction of the different client groups.

Key resource: platform.

Key activities: platform management. Acquire clients from each group.

Cost structure: development and promotion of the platform. Customer acquisition, whether
because they are proactively sought after, with a sales force, through online strategies or because they
is subsidizing the use of the platform.

Value proposition: the value proposition for the customer is generally to offer them access
easily to the products or services you are looking for; reach potential customers in a cheaper way or
faster, both for them to get to know the products and to sell them; use algorithms that allow
effectively bring together members of one client group with another (for example: if I am looking for
plus size clothing, the platform should suggest businesses that offer that type of clothing and not
another)
Customer segments: platforms serve at least two types of customer segments.
For example: [Link] has, on one side, people or companies that offer apartments.
for temporary rental and, on the other hand, people who need to rent furnished apartments for
a certain period of time (less than the minimum rental contract).

Customer relationships: generally, different relationships are developed with each type of customer.
Since platforms are volume businesses, it is always about keeping it to a minimum.
the costs of customer relationship; generally, it is about being automatic or self-managed.

Channels: user acquisition generally takes place through the internet, either through
online advertising, viral campaigns or optimizing the platform's positioning in search engines
In the case of [Link] that we mentioned earlier, this means that when someone enters,
in a search engine like Google, the words 'temporary rental in Buenos Aires", the site
[Link] will appear as one of the top options). Advertising, in media
traditional communication methods are very costly, so it is necessary to anticipate having the investment
necessary to carry it out or to celebrate alliances with media, if necessary.

Sources of income: we can make each customer group a source of income. In the
example of the temporary rental platform, a monthly subscription could be charged to those who
they offer apartments and a commission to those who rent, every time they do so through this
platform. Additionally, advertising could be offered within the platform to those who have a
property for rent or even to related third parties such as, for example, restaurants or companies
aerial.

Those are just a few elements that can characterize a business model with this pattern, but it is
It is important to remember that they are not necessarily applicable to the business you are going to develop. These are ideas and

triggers that will then need to be analyzed in each case.

Free businesses

How can a business model be free? By free, we mean those businesses in which at least
one of its consumer segments does not pay to obtain the service or product they receive.
In the case of multilateral platforms, it is possible that a group of users of the platform subsidizes, in part or
completely, to another group of consumers.

Let's think of other examples: how many times have we received a t-shirt or a cap as a gift?
promotional? A company that manufactures t-shirts sells its products to a client (the company that wants to make
promotion of their products) and, on the other hand, gives away t-shirts to potential customers without asking for payment in return.

Osterwalder (2011) presents three types of free business models:

advertising

freemium

bait and hook

Advertising

The vast majority of the content we consume in mass media is free for us. If we listen to a
radio program, we see a weekly strip on an open television channel or we receive a neighborhood magazine for
under the door, we are not incurring any expenses. But each of those means has advertising from
companies that pay for us to know their products and services. Like in the example of the t-shirt that is given away
to promote a product, someone receives something for free in exchange for receiving advertising messages. Also,
when we use a social network like Facebook or Twitter, we do it for free, without having to pay a cent, without
import for how long we use it.

This pattern has turned many media groups around the world into large companies and even generated a
new industry: advertising. Also, social networks, like the ones mentioned before, are now huge companies
that are publicly traded and generate millions in revenue.
Once again, from the rise of the internet, this business grew in the number of competitors: today, anyone
With internet access, you can, by only investing your time, create a website and go out to offer advertising.

The big mistake many entrepreneurs make is thinking that advertising will sell itself or, at least,
sufficient amount to build a significant business just by being online. The truth is that a proposal for
Value must be appreciated by others in order to achieve the use of the services offered, even if they are free.
People choose every day to visit certain pages, listen to certain programs, and even receive or not receive a T-shirt.
as a gift. When choosing one page over another, for example, there are millions of sites that we stop visiting. So,
No matter how free a social network is, if there are no people interacting within it, no one will pay to advertise.
there their products or services.

You would be surprised at the number of times that, when asked how a business is going to receive income, the response is that

It usually occurs as follows: "Easy, with advertising." So, when one asks, "Advertising of whom?", many
they do not have the answer. Others respond things like 'Coca Cola or the provincial government, who spend so much on'

advertising." Then, a third and final question appears: why would they invest in your medium or program and not in another?

What already has an audience, visits, readers, etc.? This is the question we need to seek to answer when we have
a business based on advertising.

The media can be seen as a multilateral platform: without visits, without an audience, without readers, there is no
advertising. In that sense and no other, advertisers and media audiences are interdependent groups.

Later, it will be developed how to finance a venture, a fundamental issue for multiplatforms.
We need money to finance user acquisition and to generate a platform that is useful for them.
as in the case of e-commerce platforms like Mercado Libre—and quality content or
interesting for the audiences, in the case of media or internet pages.

In Osterwalder's book, Business Model Generation, the canvas of this pattern is graphed, with some
of examples that you should read (2011, pp. 92-95).

Freemium
Freemium is a contraction derived from the words free and premium.
is often used in marketing to talk about a special or hierarchical user). The companies that use this
business models allow the user to access certain basic functionalities for free. To use more features
for the service, must be paid. This model is mainly used in internet-related businesses. Many
users will always use and will use the basic service for free, and a small percentage will want more features and
benefits for which he will be willing to pay. As Osterwalder (2011) says, it is very important, in this pattern,
to know the marginal cost of each new user, as well as to know the conversion rate of
free users to paid users (premium). This allows us to estimate how many new free users I need to.
acquire enough paying users to generate profits.

An example of the latter is LinkedIn, a platform that connects professionals, where one can create their
own profile, similar to a resume on the internet. The service is free, but there is the possibility of changing the account
a premium, which enables the user to message anyone on LinkedIn and see who visited their profile,
among other functionalities. A similar case is that of Skype, which allows us to communicate - through a
computer connected to the internet—with other users anywhere in the world; however, if you wish to use Skype
To call landlines or cell phones, you must purchase credit.

Freemium models are, by definition, multilateral platforms, with the particularity that they have a large
number of free consumers. The cost structure generally has fixed costs that allow for sustaining the
basic characteristics of free and premium customers and, in addition, the costs generated by extra services to which
premium customers access.

Osterwalder (2011) proposes some operations that are interesting to consider when calculating the
costs of operating with this model:

ingresos= (usuarios) X (% de usuarios premium) X (precio del servicio premium)

To calculate revenue over time, we must also multiply the previous result by the growth rate.
of users and the user churn rate.

Our service cost comes from how much it costs us to serve free users plus premium users.
Finally, the following operation is found:

operating result = (revenues) - (cost of service) - (fixed costs) - (acquisition costs)


new users

To integrate this pattern, it is interesting to see in Osterwalder's book, Business Model Generation, the
examples of Flickr, Red Hat, Skype, and insurance companies. You can also read about more cases in the following
article.

Required reading: Success stories of the model


freemium

This article will provide you with a general explanation of how the free, freemium model works, with examples.
practical

Success stories of the freemium [Link]


105.5 KB

Source: Pérez, M. (2013). Success examples of the freemium model [blog entry]. Retrieved from

[Link]

Bait and hook


We could see this pattern reflected in the situation 'the first one is free, the second one you have to pay for.' Basically,

the idea is to attract the buyer with the initial acquisition, free or very cheap, of a product or service, in order to

to get that same client to acquire, then, on a recurring basis, another related product or service
first.

A typical example of this is Gillette, with the razor (first product, for one-time purchase) and its shaving blade.
(second product, of recurring purchase); you can expand on this example in Osterwalder's book (2011),
Business model generation. Other examples are Epson, with its printers and ink cartridges; Nespresso,
with their coffee machines and capsules, and Amazon, with its product Amazon Kindle and the ebooks that can be read
there.

For more examples, you can read the article presented below.

Mandatory reading: Bait-and-hook business models

This article will provide you with a general explanation of how the free, bait and hook pattern works, with 8
practical examples.

Business Models of Bait and Hook _ Startups, Strategy and


Business [Link]
117.4 KB

Fuente: Megias, J. (2012). Modelos de negocios de cebo y anzuelo [entrada de blog]. Recuperado de

[Link]

Open businesses
A fundamental function of companies is innovation. We must continuously implement new ideas to
generate new features, products, services and new ways of relating to the customer, of reaching them. The
The way to innovate can be adapted to our venture.

Companies that follow this pattern interact with strategic allies to innovate; this can be through the
addition of external ideas to the company or the facilitation of own ideas (generally outdated) for third parties.

Can we think of an organization in today's world that does not constantly focus on innovation?

In this model, technologies, products, knowledge, and even the intellectual property of the company are integrated with
third parties, either because the company takes advantage of those third-party resources to apply them to its own business, or because

they make them available for others to do something profitable with those assets.

Traditionally, organizations hired the most qualified people to innovate. Today, although it is
It is necessary to work with the best possible resources, they do not necessarily have to be incorporated into the venture.

from within. If previously the entire innovation process was borne by a company, today it can be part of a
external team, adding some resources to later be able to benefit from the value generated. Then,
It will depend on how that innovation is applied in the business for it to be more profitable.

Let'slookatthefollowingtypesofopenbusinesses:

Outside in: entrepreneurship must seek the best allies to pursue its ideas.
in relation to products, knowledge, experience, patents, etc., and apply them to develop
research and innovation. To achieve this, it is necessary to focus on key activities related to searching.
and select the best allies. This generates costs, as it is necessary to allocate various resources.
to connect and leverage innovation, but it assumes that it will generate faster and better
income. This form of innovation allows companies to increase their sources of income
established, since they rely on a part of the business model that has already been proven: channels, relationships
and clients.

Inside out: parts of the value proposition (products or services) are leveraged.
currently they are not the heart of the business or are not used, so that others can make better use
of that knowledge. This generates new sources of income through the benefits that result for
entrepreneurship, whether because with that knowledge a new business was created, a joint
venture, or because a revenue sharing scheme was agreed upon (also called revenue share, in
English).

In the book Business Model Generation (Osterwalder, 2011, pp. 118-119), you will find a table
comparative analysis of the five business model patterns presented in this section. Reading is recommended to
to differentiate the differences and key notions of each one.

Let's revisit our practical case — Aló Store, with its main business units and its business model —;
Then, let's analyze how the patterns are applied.

Fashion coaching is done either in person or remotely (via Skype or WhatsApp video call) in
three modalities: 'Get the most out of your wardrobe' (intensive individual talk in which one works
image, body and wardrobe); "Coach 24/7" (WhatsApp chat available to assist you in the
same moment when you are getting dressed), and "I have an event" (event consulting,
free service based on the products from the online store). At the same time, Instagram stories are made with
the #TipbyAló theme in which advice is given, quick questions are answered, and a
constant interaction.

Online store: it was the first service of the brand and consists of a catalog of selected products.
of Argentine brands. The store adds value to the venture through accessibility, as it not only
It advises, but it also offers the possibility of obtaining some of the recommended products.
Accessibility in clothing remains an opportunity in Argentina and is the main barrier.
when it comes to image consulting.

Figure 2: Business Model


Source: self-made

The Aló Store applies a combination of the disaggregated business model pattern, focused on

the relationship with the customer and the long tail pattern, because it focuses its efforts on establishing

a closer relationship with its customers, while also drawing from suppliers

(independent designers) to provide themselves with a large catalog of garments aimed at

to many niches.

True

False
SUBMIT

According to the free business model pattern proposed by Osterwalder


(2011), how could they be implemented in Tienda Aló?

Store Aló makes exchanges with


influencers, she is their mentor in
fashion coaching gives you
Advertising
garments to obtain more
exhibition on social media
social

1 of 3

Alo Store offers 2


basic advice on
fashion coaching about use
diary of a garment. For
Freemium
access another service
complete and personalized,
what the advice includes

2 of 3

Aló Store offers for sale,


in your online store, some
clothing items that are
they access at a low price.
Bait and hook
But, to use them, they must be
buy recurrently
different accessories
combinable and adaptable to the

3 of 3
LESSON 2 of 2

References

Álvarez Rodríguez, A. (2006). Design of Collaborative Learning based on Patterns. In A. Hernández and J.
Zechinelli (Eds.). Advances in Computer Science (pp. 400-403). Mexico: Mexican Society of Computer
Science.

Megias, J. (October 12, 2012). Bait and hook business models [blog post]. Retrieved from
[Link]

Navarro, S. (September 2, 2012). 5 good long-tail e-commerce cases [blog post]. Retrieved
from [Link]

Osterwalder, A. and Pigneur, Y. (2011). Business Model Generation. Barcelona, Spain: Deusto

Pérez, M. (April 11, 2013). Success examples of the freemium model [blog post]. Retrieved from
Examples of success of the freemium model

Robinson,P.A.(dir). Gordon, L., Gordon, C. (prod.). (1989). Field of Dreams [película]. Estados Unidos: Universal
Pictures.

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