Resources that analyze the various business models in practice?

May 26, 2011 6:43 AM

Is there some kind of resource that provides a comprehensive analysis of established business models?

I've become fascinated with the various ways businesses make money, and the specific mechanics behind them. Even in the industry I work, the different companies vary widely in how they generate a profit. Is there a some kind of resource that provides an in-depth analysis on this?

For example, my ideal resource would be broken down by sector / industry, and then further break down the mechanisms behind each individual business (i.e. This is how "Business A" generates a profit, this is the profit margin on each item, the business sells "product/service X" at a loss but is recovered by the gross margin in "product/service Y").

Follow up question: If there is not a resource like this, would an advanced degree in Economics provide this kind of knowledge?

posted by platosadvocate to Work & Money (3 answers total)

"Follow up question: If there is not a resource like this, would an advanced degree in Economics provide this kind of knowledge?"

Generally, no. There might be some sort of specific program out there, but if you really wanted to study such a thing, it would more likely be learned either through a Ph. D in business, or work experience in that industry or a management consulting firm.

"I've become fascinated with the various ways businesses make money, and the specific mechanics behind them. Even in the industry I work, the different companies vary widely in how they generate a profit. Is there a some kind of resource that provides an in-depth analysis on this?"

The first thing that comes to mind is whitepapers written by consulting firms, that might come close. For example, Oliver Wyman's economic analysis of the airline industry is somewhat close, but not quite what you want.
posted by demagogue at 7:03 AM on May 26, 2011

Would general business management and/or financial analysis be a good starting place for you perhaps? That would definitely give you tools to compare one business against another (which is at least part of what you're talking about) and to examine, for example, the product mix, the contribution of each product to the overall profit (or loss) and how shifting the ratios of the different products would affect profit.

I think that the other interesting angle of what you're talking about is the fact that different companies in the same industry use different models and mechanics to generate profit but you also find that companies across various industries will be using the same models. So companies x, y and z in industries a, b and c are using the (for example) asset sale and lease-back model first pioneered in industry M to maximise profit and increase cash flow...

Not sure where to find the best resources on that sort of thing but investopedia is a good place to start.
posted by HopStopDon'tShop at 10:34 AM on May 26, 2011

Hi there, I am a business professor who teaches a class on corporate strategy. This is exactly what we do in a class like this is try to figure out why some firms are successful and others fail. My suggestion would be pick up an introductory text on this. Here are two that I think are good (there should be old used copies available).
posted by bove at 10:31 PM on May 26, 2011