Peter Drucker indicates that a good business model can position their customers appropriately, and define what does the customer value. A business model is used for creating value as well as appropriating value. Identifying the business model could be helpful for getting deep understanding of the company and identifying the risks hided in operation process. Researchers showed that business models can be divided into two categories, which involves the business model of Ryanair and service-dominant logic.
Toyota motor corporation Australia limited concentrates on wholesaling and manufacturing vehicle and accessories, while Mazda Australia Pty limited only focus on wholesaling vehicle. For the reason that these two companies sell cars along with services in exchange for money, both of them belong to the business model of Ryanair.
For mazda3, it is designed as a speedy car with an affordable price. It targets it customers as young people who pursue speedy driving experience. In Australia, Mazda only doing wholesaling, this means that the revenue is generated mainly by the wholesaling activities and services. The selling channel is the physical store. The customers can enquire the staff in the store about the feature of the cars and customized their own cars based on their own preference. No manufacturing works and indirect dealership were set in Australia can reduce the cost in large extend.
The corolla is designed as a comfortable family car with relatively low price. It targets it customers as family who prefer a comfortable and safe driving. It is different from Mazda, Toyota wholesaling as well as manufacturing vehicle in Australia. The revenue is generated by both of those activities. By using indirect dealership, the cost is higher than Mazda.
They also face challenge in the competitive environment in today’s competitive environment. It is a tradeoff between the customer satisfaction on both price and quality and