business ecosystem model startupshala

Introduction

So you have landed here, For a short definition of Business Ecosystem Model.

Well, An ecosystem business model is the model in which the owner is active very less. Or, he/ she generally, do not provide the goods or services from his/her own warehouse or at his own.

Instead, the owner hands over the power of fulfilling to sellers, vendors or freelancers. And simply, it is people, who use it on their own and they are only involved in it by following the policy of that business.

The background and Real means of it : Hindu Scriptures


There is an old saying in Hindu Scriptures like Arthshastra (Economics of 2500 BC) by Acharya Chankaya and from Sri Mad Bhagawad Geeta, Jeev Jivasya Jeevanam (जीव जीवस्य जीवनम). It means that every living organism’s life is dependent of another living organism’s life.

This clearly defines the modern current business ecosystem model.

In modern saying it is WIN -WIN strategy.

Like sellers depend on amazon and amazon depend on sellers and customers.

You can notice this kind of inter linking between lives of different living creatures. This is all ecosystem.

We depend on trees for oxugen, and they need carbon di oxide for their food making processes.

Similarly, birds and butterflies take shelter and food from trees and trees need them to spread their seeds to increase their existence.

Business is everywhere, at some places it is being operated without currency and when it gets operated on the terms of currency we can see it so we call it business.

Mother nature is the biggest teacher, no matter who you are or what you do, you can learn a lot form mother nature.

Business Ecosystem Model : Some Practical Examples


Like amazon has sellers and buyers. Jeff Bezos do not manage it actively by listing products on his own.

WordPress, has powered the web creators and bloggers to use the platform.

Shopify used the similar model. People create their online store with simple drag and drop manner. Then they market their product. They sell the products. And, shopify, charges them for a few bucks a month, that starts from $29 a month.

YouTube does not teach basketball, soccer, programming, hair styling by creating its own videos. Instead, people with the respective expertise create content for user. Then YouTube shows ads over those videos, they distribute the video advertising fees between YouTube and Creator.

You can read the how to create the better business models guide by visiting here.

However, if you are still curious about the ecosystem business model, here is the suggested reading.