On-Demand Business Model – Effective Business Strategy for Small Businesses

Effective Business Strategy for Small Businesses
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Negosentro.comBusiness industries have seen a drastic shift over the last few years. Internet and on-demand mobile applications have taken the whole business world by storm. After experiencing the massive success of on-demand taxi-hailing application like uber, various businesses have come up with new business ideas for making users lives much faster and simpler. Today, we have numerous on-demand applications that promise instant delivery of products or services to our doorsteps and that also by just a single tap on a smart screen.

Apart from the mobile application, the on-demand economy is also growing rapidly these days. It has achieved massive growth beyond our imagination. And the combination of on-demand and application has totally changed the way we live our daily lives and complete our daily chores. Now riders do not need to wait for taxis and wave their hands to stop any transportation for traveling to the destination they desire. Yellow pages are not the only option to search for the best service providers and restaurants near us. We can easily find all the solution to our problem by simply tapping on the smartphone. 

What Do You Mean by On-Demand Business?

An on-demand business is changing the way the user shop and transact, it has revolutionized consumers’ behavior. The on-demand economy is an effective activity crafted by the IT companies that satisfy most of the user’s demands by offering products or services in minimal time. On-demand business is one of the best solutions for the businesses who want to offer a fast, simple, and convenient, solution to their ideal customers.

Important Variables for Successful Business Model 

If you want that your business must reach the new heights of success then you need to go through all the business modules and implement the one that is best for your business. Let’s discuss important variables that can help you to run successfully on-demand business. 

Strong Relationship Between Supply and Customers 

You must follow the business model that helps you to develop an effective and strong relationship with your customers. You can also use any of the platforms for developing the relation, you can hire developers who are having expertise in offering the best mobile application platform for your business. This application will offer you can platform through which you can easily interact with your customers and can solve their queries and doubts. 

Degree of Commoditization

It represents the number of variables which are directly associated with your business product or service. Users ask various questions about your products or services to clear their doubts. It simply means that the lesser number of variables results in a high number of commoditized of that particular product or services. Uber’s ODMS platform has a large number of degrees of commoditization, the uber users can easily choose the type of vehicle through which they want to transport. Whereas the Airbnb users also have the option of selecting a particular date for booking, the location of the listing, number of days, rent, etc from the available facilities. 

Pricing Structure

One of the important factors of the business model is the pricing structure of your business. It is very difficult to decide whether the entrepreneur must go with one which totally depends on the choice of the users or service provider or must go for a singular pricing structure that is for most the platform. Keep in mind that the final call for the pricing structure totally depends on the degree of commoditization. If there is a larger difference in the product quality then it gets more difficult for the businesses to impose standard pricing for their product or services. 

Scheduled or Instance 

The value of the on-demand application and business is increasing drastically as it has eased the lives and has brought convenience to the user’s lives. User can easily book their required products or services by following a few simple steps and can enjoy the services instantly or can also schedule delivery as per their convenience. 


Most of the on-demand applications deal with two or more stakeholders. If the involvement of stakeholders is more than it can affect your business model. Let’s explain you with the example Uber is deal by the two key stakeholders that are passengers and drivers whereas the application like Postmates which does not have their own infrastructure to deliver products or services has the involvement of third key stakeholder that deliver the prepared meals. 

Businesses these days are mainly focusing on offering efficient and effective services to their ideal customers, hence they are developing an effective business model and stepping ahead to get the on-demand application for their business. User can easily download and use this application to get the desired product or services as per their convenience. Looking at the current demand of on-demand application it can be said that it is the best choice to get the application developed for your business. You must also develop an effective business model that can help you to take your business to the next level of success.   

Manoj Rupareliya 1
Manoj Rupareliya

Author Bio

Manoj Rupareliya is the Online Marketing Expert and Blogger. He is an experienced writer with expertise in the field of technology, blockchain, crypto, AI, Digital Marketing and SEO. All the blogs he writes are aimed at providing credible help and insights for readers who want to stay updated all the time.

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