Major Business Models List: Subscription, SaaS, Fabless, and More for the IT Passport Exam

What is a Business Model?

A business model refers to the mechanism of "who you provide value to, what value you provide, how you provide it, and how you generate revenue." In the Strategy domain of the IT Passport exam, both term identification and concrete examples are tested, so it's important to learn names and characteristics together.

Models Classified by Revenue Type

Subscription (Recurring Billing)

A model that charges recurring fees monthly or annually, with representative examples including Netflix, Adobe Creative Cloud, and Spotify. Since the goal is to maximize customer lifetime value (LTV), keeping the churn rate low is a core management concern.

SaaS (Software as a Service)

A form where software provided via the cloud is used on a subscription basis, with typical examples being Salesforce and Microsoft 365. Details are explained in Differences between SaaS, PaaS, and IaaS.

Freemium

A model that offers basic features for free and charges for premium features. Companies like Slack, Dropbox, and Notion use this model; since the trial barrier is low, the design of the paid conversion rate significantly impacts revenue.

Advertising Model

A structure where users can use the service for free, and revenue is generated from advertisers. Representative examples include Google, YouTube, and Facebook, with large-scale data collection and precise targeting being the source of revenue.

Models Classified by Manufacturing and Distribution Type

Fabless

A model where the company does not own factories but specializes in design and sales. Apple and Qualcomm are representative examples, with manufacturing outsourced to EMS (Electronic Manufacturing Services). It's easier to organize by contrasting this with dedicated manufacturing foundries (such as TSMC).

OEM / ODM

OEM is a form of manufacturing under another company's brand (the manufacturer acts as the "behind-the-scenes" party), while ODM is a form where even the design is outsourced, applicable to private brands of electronics retailers. The difference between the two is distinguished by "whether design is included."

Franchise

A system where the headquarters provides the brand and know-how, and franchisees pay royalties. Convenience stores and restaurant chains are typical examples. In the exam, questions about the "direction of royalty payments (franchisee → headquarters)" are common.

Key Points for the IT Passport Exam

The focus is on "combination questions" that test the correspondence between business model names and characteristics. Questions about "subscription-ization" in the context of DX are also increasing (see What is DX). In recent years, "sharing economy," "matching-type," and "crowdfunding" have also appeared, so a broad understanding is necessary.

Study Tips

A efficient method is to memorize each model by associating it with just one specific company name. By classifying based on "where does the revenue come from (users, advertisers, or franchisees)?" you can narrow down choices even for unfamiliar models.

Summary

If you memorize the combinations of names and characteristics for about 10 types, you can handle most of the frequently asked questions. For comprehensive practice on the Strategy domain, go to Strategy Summary; for full-length practice, go to Mock Exams.