A strong business model is the foundation of every successful company, shaping how it adds value, generates revenue, and remains competitive. This is especially true for global companies . Business models With the right framework, international companies can prepare to enter new regional markets and adapt as they expand their operations around the world.
The question is: with so many successful business models to choose from, how do you determine the right fit for your needs?
This guide will detail the most effective types of business models, showcase real-world examples, and provide practical steps to create your winning growth strategy.
What is a business model and why is it important?
Simply put, a business model is a company’s plan for producing value. More specifically, a business model provides an overall strategy for bringing products and services to target markets to drive sales and profit.
Strong, innovative business models are essential for modern companies. They don’t just impact your bottom line; they can help attract investors and high-quality talent. For companies operating across international borders, these models also provide a roadmap for entering global markets and creating localization strategies.
8 Types of International Business Models and Localization Opportunities
There are many different business models, each with unique benefits and applications. Ultimately, the business model you choose will depend on many factors, including your overall goals, budget, and target international markets .
Here are eight compelling business models to consider:
1. E-commerce Business Model
The e-commerce business model determines how a company sells products and services online, such as through an e-commerce website or a third-party digital marketplace such as eBay or Amazon.
For example, an entrepreneur bolivia whatsapp number data 5 million might use Shopify to build an online store and accept payments from international customers. If they’re concerned about language barriers, they can use Smartling’s Shopify integration to get fast, high-quality translations of product descriptions, checkout pages, and more.
This online business model is easily scalable worldwide because it doesn’t require a physical storefront. At the same time, the e-commerce landscape can be incredibly competitive due to the low entry level.
Ecommerce business model example: Sustainable footwear brand Allbirds has launched dedicated, localized ecommerce sites for customers in New Zealand, Canada, Australia, and the United Kingdom.
2. Retail Business Model
Retail is one of the most common business models. This revenue model involves purchasing finished products from manufacturers and wholesalers and selling them directly to buyers at a higher price represents the client’s point of view in physical stores or online.
The retail business model can come with high costs and overhead, especially if the company operates a physical store. However, companies can make a profit by selling multiple products and marking up their prices.
Retail business model example: Walmart created the successful Walmex brand to serve local customers in Mexico and create jobs. Its supermarket chain, Bodega Aurrera, is one of the largest private employers in the country.
3. Subscription business model
A subscription business model provides ongoing access to a product or service in exchange for regular payments. It’s a great model for generating reliable revenue streams. However, subscription models can be difficult to maintain, as you need to keep your products updated b2b phone list over time or risk losing customers.
Subscription business model example: Netflix operates separate streaming hubs for audiences in different countries, including region-specific content and built-in translations. The entertainment giant regularly licenses and produces new shows and movies to appeal to diverse customer segments.
4. Freemium Business Model
A freemium business model attracts customers with free versions of products or services and then upsells them to an upgrade. The freemium model is great for fostering customer relationships and driving signups. However, companies must be strategic about how much they give away in their free versions and how they entice free users to become buyers.
Freemium business model example: Spotify offers both free and paid models with personalized music suggestions for each user. The company is driving rapid growth in countries like India and Brazil by adapting to local pricing and customer preferences.
5. Cluster business model
Businesses can use bundles to offer multiple products or services at a discounted price. Bundling can help businesses increase average order value and delight customers with special offers. However, businesses must budget carefully, as a revenue model based on discounts often means very small profit margins.
Example of a bundling business model: Adobe offers several subscription packages through Creative Cloud that offer software programs such as Photoshop and Illustrator at a significant discount.
6. Marketplace Business Model
Marketplaces are one-stop shops for customers to easily purchase from multiple brands. As intermediaries, these marketplaces provide retailers with access to a large customer base in exchange for a fee or a share of the profits.
Global marketplaces can be complex to set up, as there are so many different parties and logistics involved. But with the right localization strategies, they can scale to connect buyers and sellers around the world. For example, marketplaces can use Smartling’s AI translation to localize content for different customer segments and increase international sales.
Marketplace business model example: Handmade marketplace Etsy connects buyers with international sellers by offering local payment methods and translating listings into their preferred languages.
7. Affiliate Business Model
In an affiliate business model, companies pay partners, also known as affiliates, to promote their products or services in exchange for a flat fee or a percentage of sales. Social media influencers, for example, can act as affiliates for brands looking to build engaged, engaged audiences.
Affiliate Business Model Example: Amazon Associates uses affiliates around the world to promote products in their communities in exchange for a commission.
8. Franchise Business Model
The franchise business model entrusts franchisees with the management of physical locations, or franchises. This allows the company to transfer the logistics and operations of each location and take a percentage of the profits. In addition to domestic locations, companies can establish franchises in different countries. However, needs and preferences of each market.