Appendix B: 50 Business Models Decoded¶

Purpose: One-page profiles of 50 major business models (25 Global, 25 Indian) with Business Model Canvas, unit economics, moat analysis, and strategic lessons.

How to Use This Appendix¶

Each business model profile includes:

1. Company Name & One-Line Description
2. Business Model Canvas - 9 building blocks
3. Revenue Model Type - How money is made
4. Key Metrics - CAC, LTV, margins, and business-specific KPIs
5. Unit Economics Summary - Profitability at the unit level
6. Moat Analysis - Primary competitive advantages
7. Strategic Lessons - 3-5 key takeaways
8. References - Source citations

PART A: GLOBAL BUSINESS MODELS (25)¶

G1: Amazon - Everything Store & AWS Cloud Platform¶

One-Line Description: E-commerce marketplace and cloud infrastructure provider that achieved economies of scale through customer obsession and long-term thinking.

Business Model Canvas¶

Customer Segments:

• Online shoppers (consumers)
• Third-party sellers (marketplace)
• Enterprises (AWS cloud customers)
• Content consumers (Prime Video, Music)
• Developers (AWS ecosystem)

Value Propositions:

• Consumers: Widest selection, low prices, fast delivery, convenience
• Sellers: Access to massive customer base, fulfillment infrastructure
• Enterprises: Scalable, reliable cloud infrastructure with 200+ services
• Prime members: Free 2-day shipping, streaming content, exclusive deals

Channels:

• Amazon.com website and mobile app
• AWS Console and APIs
• Whole Foods retail stores
• Amazon Go cashierless stores
• Voice (Alexa)

Customer Relationships:

• Self-service shopping experience
• Personalized recommendations (ML-driven)
• Prime membership subscription
• AWS technical support and enterprise sales

Revenue Streams:

• Online stores: Direct product sales (50% of revenue)
• Third-party seller services: Commissions, fulfillment fees (22%)
• AWS: Compute, storage, database services (16%)
• Subscription services: Prime memberships (7%)
• Advertising: Sponsored products, display ads (5%)

Key Resources:

• Fulfillment network: 1,000+ warehouses globally
• AWS infrastructure: Data centers, networking, proprietary hardware
• Technology: Recommendation algorithms, logistics optimization
• Brand: Most trusted e-commerce brand
• Data: Customer behavior, purchase history, search data

Key Activities:

• Warehouse operations and logistics
• Technology development (e-commerce platform, AWS services)
• Seller onboarding and support
• Content acquisition and production
• Infrastructure operations

Key Partnerships:

• Third-party sellers (2.5M+ active)
• Delivery partners (USPS, UPS, Amazon Logistics)
• Payment processors
• Content producers (Prime Video)
• Hardware manufacturers (Kindle, Echo, Fire)

Cost Structure:

• Cost of sales: Product costs (60% of retail revenue)
• Fulfillment and shipping: Warehouses, logistics (12%)
• Technology and infrastructure: AWS capex, R&D (12%)
• Marketing and seller acquisition (5%)
• General & administrative (3%)

Revenue Model Type¶

Hybrid: Direct Sales + Marketplace + SaaS + Subscription + Advertising

Key Metrics¶

• Retail GMV: $575B+ (FY23)
• AWS Revenue: $90.8B (FY23, 30% YoY growth)
• Prime Members: 200M+ globally
• Third-Party Share: 60% of units sold
• AWS Operating Margin: 30%+ (vs. 2-5% for retail)
• R&D Spend: $85B+ (FY23, 15% of revenue)

Unit Economics Summary¶

Amazon Retail:

• Average Order Value: $50-60
• Gross Margin: 40% ($20-24)
• Fulfillment + Shipping: $10-12
• Contribution Margin: $8-12 per order (16-20%)
• Prime Member LTV: $1,400+ (vs. $600 non-Prime)

AWS:

• Average Customer ACV: Varies widely ($100/month for startups to $10M+ for enterprises)
• Gross Margin: 70%+
• CAC: $1,000-10,000 (depends on segment)
• LTV: $50,000+ (startups) to $50M+ (enterprises)
• LTV:CAC Ratio: 10:1+ for cloud business

Moat Analysis¶

Primary Moats:

1. Scale Economies (9/10): Unmatched fulfillment network density, AWS infrastructure scale creates 30-40% cost advantage vs. competitors
2. Network Effects (7/10): More buyers attract more sellers, creating selection flywheel; AWS ecosystem (millions of developers) creates stickiness
3. Switching Costs (8/10): Prime membership habit, AWS migration costs (workload migration can cost $1M+ and take 12+ months)
4. Branding (7/10): Trust in reliable delivery and customer service

Total Moat Score: 31/40 - Dominant competitive position

Strategic Lessons¶

1. Two-Speed Innovation: Retail runs on thin margins funding high-margin AWS; cross-subsidization enables both offensive and defensive positioning
2. Long-Term Value Creation: Willingness to forgo short-term profits for market position (operated retail near break-even for 15 years while building infrastructure moat)
3. Flywheel Economics: Lower prices → More customers → More sellers → Greater selection → Lower prices (virtuous cycle)
4. Build vs. Buy Infrastructure: AWS started as internal infrastructure, became $90B business; building own logistics network rather than relying on FedEx/UPS created delivery advantage
5. Customer Obsession as Strategy: Working backward from customer needs (e.g., Prime created to solve "I want it now" job) rather than forward from capabilities

References¶

• Amazon Annual Report 10-K, FY23 [Source: SEC.gov]
• "The Everything Store" by Brad Stone (2013)
• AWS Customer Case Studies [Source: aws.amazon.com/solutions/case-studies]
• Amazon Shareholder Letters (1997-2023) [Source: amazon.com/ir]

Chapter References: Chapter 10: Marketplace & Platform Models, Chapter 21: Scaling Strategies, Chapter 15: Competitive Advantage

G2: Apple - Integrated Hardware-Software-Services Ecosystem¶

One-Line Description: Premium consumer electronics company with vertically integrated ecosystem creating exceptional user experience and switching costs.

Business Model Canvas¶

Customer Segments:

• Premium consumers (global)
• Creative professionals (content creators, designers)
• Enterprise (corporate device management)
• Developers (App Store ecosystem)
• Education institutions

Value Propositions:

• Seamless ecosystem experience (iPhone, Mac, iPad, Watch, AirPods work together)
• Design and brand premium
• Privacy and security positioning
• High-quality hardware with long lifespan (5+ years)
• Curated App Store with 1.8M+ apps

Channels:

• Apple retail stores (500+ globally)
• Online store (apple.com)
• Carrier partnerships (iPhone)
• Third-party resellers (Best Buy, authorized retailers)
• Direct sales (enterprise, education)

Customer Relationships:

• Genius Bar (in-store technical support)
• AppleCare+ (extended warranty and support)
• Apple Card/Apple Pay (financial services relationship)
• Apple Music, TV+, iCloud (subscription relationships)
• Developer relations (App Store ecosystem)

Revenue Streams:

• iPhone: $200B+ (52% of revenue, FY23)
• Services: $85B (22%) - App Store, AppleCare, iCloud, Apple Music, TV+, Apple Pay
• Mac: $40B (10%)
• Wearables/Home/Accessories: $40B (10%) - Watch, AirPods, HomePod
• iPad: $30B (8%)

Key Resources:

• Brand: #1 most valuable brand globally ($500B+ brand value)
• Design capability: Industrial design, UI/UX
• Silicon design: M-series, A-series chips (in-house)
• Retail network: Premium locations, high revenue per square foot
• Cash: $160B+ in cash and marketable securities

Key Activities:

• Product design and development
• Silicon design (custom chips)
• Software development (iOS, macOS, iPadOS, watchOS)
• Manufacturing coordination (Foxconn, TSMC)
• Retail operations
• Services platform operation

Key Partnerships:

• Foxconn (manufacturing)
• TSMC (chip fabrication)
• Carriers (iPhone distribution and subsidies)
• App developers (1.8M apps)
• Content providers (Apple TV+)
• Payment networks (Apple Pay)

Cost Structure:

• Cost of sales: Components, manufacturing (60% of product revenue)
• R&D: $30B+ (8% of revenue)
• SG&A: $27B (7%)
• Retail operations: $20B (5%)

Revenue Model Type¶

Hybrid: Premium Hardware Sales + Services Subscription + Marketplace (App Store Take Rate)

Key Metrics¶

• Total Revenue: $383B (FY23)
• Gross Margin: 44.1% (highest among hardware companies)
• iPhone Active Base: 1.2B+ devices
• Services Gross Margin: 71% (vs. 36% for products)
• App Store Revenue: $1.1T+ paid to developers since 2008
• Brand Premium: 30-50% price premium vs. comparable Android devices

Unit Economics Summary¶

iPhone (example: iPhone 15 Pro):

• Retail Price: $999
• Bill of Materials (BOM): $400-450
• Gross Margin: $550-600 (55-60%)
• Marketing + Distribution + Support: $150-200
• Contribution Margin: $350-450 per device

Services (example: iCloud 200GB plan):

• Monthly Price: $2.99
• Monthly Cost: $0.20 (storage, bandwidth, support)
• Monthly Margin: $2.79 (93%)
• Annual LTV: $33.48 per subscriber
• CAC: Near-zero (upsold to existing device users)

Ecosystem LTV:

• Average Customer Lifetime: 7+ years (device replacement cycle)
• Devices Per Customer: 2.5 (iPhone + Mac/iPad + Watch/AirPods)
• Services ARPU: $10-15/month
• Total Customer LTV: $5,000-8,000

Moat Analysis¶

Primary Moats:

1. Branding (10/10): Unmatched brand power commanding 30-50% premium; brand loyalty creates repeat purchase rate of 90%+
2. Switching Costs (9/10): Ecosystem lock-in (iMessage, iCloud, AirDrop, Continuity) makes switching to Android painful; estimated switching cost $1,000-2,000 in lost utility and data migration
3. Cornered Resource (7/10): Silicon design expertise (M-series chips outperform Intel by 2x in performance-per-watt); exclusive access to TSMC 3nm process
4. Scale Economies (7/10): R&D amortized across 1.2B+ iPhone users; retail store productivity 5x industry average

Total Moat Score: 33/40 - Dominant position

Strategic Lessons¶

1. Ecosystem Lock-In as Strategy: Each product increases switching costs (iPhone + Mac + Watch creates 3x stickiness vs. single product)
2. Hardware Margins Fund Services Growth: Premium hardware margins create cash to invest in free services (iCloud 5GB free, iMessage, FaceTime) that increase ecosystem stickiness
3. Vertical Integration: Control of silicon, OS, hardware, and services creates differentiation impossible for horizontally integrated competitors
4. Privacy as Differentiation: Positioning privacy as feature (vs. Google's ad-driven model) creates premium brand perception
5. Services Transformation: Shifting from hardware transactional to services recurring revenue increases LTV and reduces revenue volatility

References¶

• Apple Annual Report 10-K, FY23 [Source: SEC.gov]
• "Inside Apple" by Adam Lashinsky (2012)
• Teardown analyses from TechInsights, iFixit [Source: ifixit.com, techinsights.com]
• Apple WWDC keynotes and earnings calls [Source: apple.com/investor]

Chapter References: Chapter 13 (D2C Models), Chapter 15 (Competitive Advantage), Chapter 16 (Moats), Chapter 22 (Positioning)

G3: Netflix - Streaming Content Platform¶

One-Line Description: Subscription streaming service that transitioned from content aggregator to content producer, leveraging data-driven commissioning.

Business Model Canvas¶

Customer Segments:

• Global streaming subscribers (260M+ in 190+ countries)
• Advertising tier subscribers (lower price point)
• Household sharers (now monetized via paid sharing)

Value Propositions:

• Unlimited streaming content for fixed monthly fee
• Original content exclusive to Netflix (The Crown, Stranger Things, Squid Game)
• Personalized recommendations (80% of viewing from recommendations)
• Ad-free experience (standard/premium tiers)
• Multi-device access (TV, mobile, web)

Channels:

• Netflix website and apps (iOS, Android, smart TVs)
• Pre-installed on smart TVs and streaming devices
• Mobile carrier partnerships (bundling)

Customer Relationships:

• Self-service subscription management
• Personalized UI and recommendations
• Customer support (chat, phone)
• Social features (watch together, sharing lists)

Revenue Streams:

• Subscription revenue: $33.7B (FY23)
• Standard with Ads: $6.99/month (US)
• Standard: $15.49/month (US)
• Premium: $22.99/month (US, 4K, 4 screens)
• Paid sharing: Extra member fee ($7.99/month in US)

Key Resources:

• Content library: 15,000+ titles, 40% original content
• Technology: Recommendation algorithm, streaming infrastructure
• Subscriber base: 260M+ (network effects in content commissioning)
• Data: 1B+ hours viewed daily, granular engagement data
• Brand: #1 streaming brand globally

Key Activities:

• Content acquisition and licensing
• Original content production ($17B+ annual spend)
• Technology development (streaming, recommendations)
• Localization (subtitles, dubbing in 30+ languages)
• Marketing and subscriber acquisition

Key Partnerships:

• Content studios and producers
• ISPs (Open Connect CDN partnerships)
• Smart TV manufacturers (pre-installation)
• Mobile carriers (bundling deals)
• Payment processors (enabling 190+ country payments)

Cost Structure:

• Content costs: $17B+ (50% of revenue) - licensing and production
• Technology and development: $2.8B (8%)
• Marketing: $2.5B (7%)
• G&A: $2.2B (6%)
• Streaming delivery: $1B+ (3%)

Revenue Model Type¶

Subscription (Freemium variant with ad-supported tier)

Key Metrics¶

• Subscribers: 260.3M (Q4 2023)
• ARPU: $11-16 (varies by region)
• Monthly Churn: 2-3% (industry-leading low churn)
• Annual Revenue per Subscriber: $150-180
• Content Hours Viewed: 1B+ hours daily
• Engagement: 2+ hours per subscriber per day
• Free Cash Flow: $6.9B (FY23, recently turned positive)

Unit Economics Summary¶

Subscriber Economics (US Market):

• Average Monthly Subscription: $14
• Annual Revenue per Sub: $168
• Content Cost per Sub: $85/year (amortized across base)
• Technology + Delivery Cost: $20/year
• Marketing (CAC Amortized): $15/year
• Contribution Margin: $48/year (29%)

CAC and Payback:

• Blended CAC: $60-80 (varies by channel and region)
• Organic (word of mouth): $20
• Paid (digital ads): $100-150
• Payback Period: 6-9 months
• Subscriber Lifetime: 4-5 years average
• LTV: $650-750
• LTV:CAC Ratio: 8-10x

Moat Analysis¶

Primary Moats:

1. Scale Economies (9/10): Content costs amortized across 260M subs; $17B content budget unmatched except by Disney+; scale enables localization in 30+ languages
2. Network Effects (Data) (7/10): More viewers → better engagement data → better content commissioning decisions → more hit shows → more viewers
3. Branding (8/10): "Netflix and chill" cultural phenomenon; 90%+ aided brand awareness globally
4. Switching Costs (5/10): Moderate - viewing history and recommendations create stickiness, but content can be watched elsewhere; paid sharing increases switching costs

Total Moat Score: 29/40 - Strong but not dominant (content competition from Disney+, HBO Max, Prime Video)

Strategic Lessons¶

1. Content Investment as Moat: Transitioned from licensing to production when studios became competitors; now 40% original content creates differentiation
2. Data-Driven Commissioning: Use viewing data to greenlight content (House of Cards commissioned based on data showing Fincher + Spacey + political drama had audience); reduces hit rate risk
3. Global Localization: Invest heavily in local content (e.g., Money Heist in Spain, Squid Game in Korea) that travels globally; non-English content now 30% of viewing
4. Churn Management: Focus on engagement, not just acquisition; 70% of cancelled subscribers return within 12 months
5. Business Model Evolution: Started DVD rental, pivoted to streaming aggregator, evolved to content producer, now adding ads tier - willingness to disrupt own model

References¶

• Netflix Shareholder Letters and Earnings Reports [Source: ir.netflix.net]
• "No Rules Rules" by Reed Hastings and Erin Meyer (2020)
• Netflix Technology Blog [Source: netflixtechblog.com]
• Industry analysis from Ampere Analysis, Antenna [Source: amplereanalysis.com]

Chapter References: Chapter 9 (Subscription Models), Chapter 14 (Business Model Transformation), Chapter 18 (Winner-Take-All Markets)

G4: Stripe - Developer-First Payment Infrastructure¶

One-Line Description: API-first payment processing platform that reduced online payment integration from weeks to hours, targeting developers rather than finance teams.

Business Model Canvas¶

Customer Segments:

• Startups and tech companies
• E-commerce platforms (Shopify, Amazon)
• SaaS companies (usage-based billing)
• Marketplaces (split payments, Connect)
• Enterprises (global payment needs)

Value Propositions:

• 7 lines of code to accept payments (vs. 2-3 weeks traditional integration)
• Developer-friendly API documentation
• Global payment methods support (135+ currencies, local payment methods)
• Unified payments infrastructure (processor, compliance, fraud, billing, reporting)
• Compliance handled (PCI-DSS, regional regulations)

Channels:

• Self-serve (stripe.com signup)
• Developer-led (documentation, API)
• Direct sales (enterprise customers)
• Platform partnerships (Shopify, WooCommerce integrations)

Customer Relationships:

• Developer community (forums, documentation)
• Email and chat support
• Dedicated account management (enterprise)
• Stripe Atlas (company formation for startups)

Revenue Streams:

• Transaction fees: 2.9% + $0.30 per successful charge (US)
• Stripe Connect: +0.5% for marketplace platforms
• Billing: Subscription management (0.5% + standard fees)
• Stripe Terminal: Hardware + transaction fees
• Treasury: Financial services (interchange + interest)
• Radar: Fraud prevention ($0.05 per transaction)

Key Resources:

• Payment infrastructure: Connections to card networks, banks
• Technology: API, fraud detection (ML models)
• Licenses: Payment processor licenses in 45+ countries
• Brand: Developer mindshare, Y Combinator alumni network
• Data: Fraud patterns across millions of merchants

Key Activities:

• Payment processing
• Technology development (APIs, integrations)
• Compliance and regulatory (PCI, KYC, AML)
• Fraud detection and prevention
• Partner integration (payment methods, banks)

Key Partnerships:

• Card networks (Visa, Mastercard, Amex)
• Banks (issuing and acquiring)
• Local payment methods (Alipay, iDEAL, UPI)
• Platforms (Shopify, WooCommerce, Salesforce)
• Cloud providers (AWS, GCP for infrastructure)

Cost Structure:

• Interchange fees: 2-2.5% (paid to card networks/banks)
• Technology and infrastructure: 0.3-0.5%
• Risk and fraud losses: 0.1-0.2%
• Sales and marketing: 0.2%
• Operations and support: 0.1%
• Net margin: 0.5-1.5% on transaction fees

Revenue Model Type¶

Transaction-Based (Take Rate) + Usage-Based SaaS Add-ons

Key Metrics¶

• Total Payment Volume (TPV): $1T+ annually (2023)
• Revenue: $16B+ (2023 estimate, private company)
• Net Revenue Take Rate: 1.5-1.8% (after interchange)
• Active Accounts: 4M+ businesses
• Transactions Processed: Billions annually
• Uptime: 99.999% (critical for real-time payments)

Unit Economics Summary¶

SMB Customer (Example: $50K monthly GMV):

• Monthly GMV: $50,000
• Stripe Revenue (2.9% + $0.30): $1,480
• Interchange + Network Fees: ($1,200)
• Gross Margin: $280 (19% margin)
• Support + Infrastructure Costs: ($50)
• Net Margin: $230/month
• Annual Revenue per Customer: $17,760
• CAC: $200-300 (self-serve, low-touch)
• Payback: 1-2 months
• Customer Lifetime: 4+ years
• LTV: $11,000+
• LTV:CAC: 40-50x

Enterprise Customer (Example: $50M monthly GMV):

• Monthly GMV: $50,000,000
• Negotiated Rate: 2.0% + $0.20
• Stripe Revenue: $1,001,000
• Net Margin: $200,000/month (20%)
• Annual Revenue: $12M
• CAC: $100K-200K (direct sales)
• LTV: $50M+ (multi-year contracts)
• LTV:CAC: 250x+

Moat Analysis¶

Primary Moats:

1. Switching Costs (8/10): Once integrated, ripping out Stripe is expensive (engineering time, testing, compliance recertification); mission-critical infrastructure
2. Network Effects (6/10): More merchants → better fraud data → better fraud prevention → more merchant value; Connect ecosystem (platforms like Shopify use Stripe infrastructure for their merchants)
3. Scale Economies (7/10): Fixed costs of compliance, integrations, fraud ML amortized across large TPV; negotiating power with card networks improves with scale
4. Cornered Resource (6/10): Payment licenses in 45+ countries; relationships with banks and card networks

Total Moat Score: 27/40 - Strong competitive position

Strategic Lessons¶

1. Developer as Economic Buyer: Target developers (easy integration, great docs) who influence finance team decisions; bottom-up adoption strategy
2. Expand Surface Area: Started with payments, expanded to billing, fraud, terminal, treasury, corporate cards, lending - increasing revenue per customer and switching costs
3. Infrastructure as Service: Abstract complexity (compliance, fraud, multi-currency, local payment methods) behind simple API
4. Platform Play: Stripe Connect enables platforms (Shopify, Lyft, Doordash) to use Stripe infrastructure, capturing both platform and end-merchant volume
5. Global from Day One: Supported international payments early, enabling US startups to sell globally and international companies to enter US

References¶

• Stripe Press releases and blog [Source: stripe.com/newsroom]
• "The Stripe Press" books on business fundamentals
• Patrick Collison interviews and writing [Source: patrickcollison.com]
• Payment industry analysis from PYMNTS, Nilson Report [Source: pymnts.com]

Chapter References: Chapter 12 (Fintech Models), Chapter 10 (Platform Models), Chapter 22 (Positioning)

G5: Costco - Membership-Driven Wholesale Retailer¶

One-Line Description: Warehouse retailer selling products at near-zero margin, capturing value through membership fees and high inventory turnover.

Business Model Canvas¶

Customer Segments:

• Value-conscious consumers (families, bulk buyers)
• Small businesses (restaurants, offices)
• Affluent customers (treasure hunt merchandise)

Value Propositions:

• 10-20% lower prices than traditional retail (near-cost pricing)
• High-quality products (Kirkland Signature private label)
• Limited SKUs (4,000 vs. 30,000 at typical supermarket) reduces choice overload
• Treasure hunt experience (rotating limited-time merchandise)
• No-hassle returns

Channels:

• Warehouse stores (860+ locations, US and international)
• Costco.com (online ordering, same-day delivery via Instacart)
• Business centers (specialized for restaurants/businesses)

Customer Relationships:

• Membership-based access
• Customer service desk (liberal return policy)
• Pharmacy, optical, gas stations (added services)
• Free samples (15-20 sample stations per store)

Revenue Streams:

• Membership fees: $4.6B (2% of revenue, 75% of net income!)
• Gold Star (Consumer): $60/year
• Business: $60/year
• Executive: $120/year (2% cashback)
• Merchandise sales: $237B (98% of revenue)
• Food and Sundries: 40%
• Non-Foods (appliances, electronics, furniture): 20%
• Fresh Foods: 15%
• Ancillary (gas, pharmacy, optical): 25%

Key Resources:

• Real estate: 860+ large-format warehouses (average 146,000 sq ft)
• Kirkland Signature brand (25% of sales)
• Membership base: 128M+ cardholders (paid membership)
• Supplier relationships (volume guarantees for low prices)
• Employee loyalty (low turnover, high wages)

Key Activities:

• Merchandise buying (centralized, high-volume negotiation)
• Warehouse operations
• Inventory management (turnover optimization)
• Member acquisition and retention
• Private label development (Kirkland)

Key Partnerships:

• Suppliers (P&G, Unilever, Samsung, etc.) - volume commitments for low prices
• Payment processors (only accepts Visa for low fees)
• Gas suppliers (Costco gas stations)
• Real estate developers (site selection for warehouses)

Cost Structure:

• Cost of goods sold: 87% of merchandise revenue (vs. 75% typical retail)
• SG&A: 9.5%
• Warehouse operations: 2.5%
• Net merchandise margin: 11% (vs. 25-30% typical retail)
• Operating margin: 3.5% (membership fees drive all profit)

Revenue Model Type¶

Membership + Near-Cost Product Sales (Reverse Razor-Razorblade)

Key Metrics¶

• Total Revenue: $242.3B (FY23)
• Membership Fee Revenue: $4.6B (FY23)
• Membership Renewal Rate: 93% (US/Canada), 90% (global)
• Comparable Store Sales Growth: 5-7% annually
• Inventory Turnover: 12x/year (vs. 6-8x typical grocery)
• Sales per Square Foot: $1,650+ (3x typical retail)
• Treasure Hunt Items: 20-25% of inventory rotates monthly

Unit Economics Summary¶

Average Member Household:

• Annual Membership Fee: $60 (Gold Star) or $120 (Executive)
• Annual Spending: $3,000-5,000 (varies widely)
• Merchandise Margin: 11% × $4,000 = $440
• Membership Contribution: $60
• Total Gross Margin per Member: $500
• Overhead Allocation: $400
• Net Profit per Member: $100
• Member Lifetime: 15+ years (high retention)
• Member LTV: $1,500+

Store Economics:

• Average Warehouse Sales: $280M/year
• Membership Fees (60,000 members × $70 avg): $4.2M
• Merchandise Gross Margin (11% × $280M): $30.8M
• Operating Expenses: $27M
• Operating Income: $7.8M per warehouse
• Payback on New Warehouse: 5-7 years

Moat Analysis¶

Primary Moats:

1. Scale Economies (10/10): Massive buying power (buying $200B+ annually) enables 10-20% lower prices than competitors; suppliers compete for Costco shelf space
2. Switching Costs (7/10): Annual membership fee creates sunk cost; Executive members with 2% cashback have higher switching costs
3. Counter-Positioning (8/10): Traditional retailers (Walmart, Target) cannot match near-zero merchandise margins without changing entire business model
4. Process Power (7/10): Inventory turnover, limited SKUs, treasure hunt merchandising hard to replicate; operational excellence accumulated over 40+ years

Total Moat Score: 32/40 - Dominant position in warehouse retail

Strategic Lessons¶

1. Membership as Profit Source: Making money on membership (not merchandise) aligns incentives with customers - Costco wins only if members find value
2. Limited SKUs = Volume = Low Prices: Carrying 4,000 SKUs (vs. 30,000 at typical supermarket) concentrates volume per item, enabling bulk discounts
3. Treasure Hunt Merchandising: 20-25% rotating inventory creates urgency ("buy now or it's gone") and excitement
4. Private Label Power: Kirkland Signature is 25% of sales with 50%+ margins (vs. 11% overall) - doesn't raise prices to consumers, just improves Costco margin
5. Employee Investment: Pay above-market wages ($18-27/hour vs. $12-15 retail average), creating low turnover (10% vs. 60% retail), better service, and reduced hiring/training costs

References¶

• Costco Wholesale Annual Report 10-K, FY23 [Source: SEC.gov]
• "The Costco Craze" by David Schwartz (2020)
• Industry analysis from Kantar Retail, IDDBA [Source: kantarretail.com]
• Costco Earnings Calls transcripts [Source: costco.com/investor]

Chapter References: Chapter 11 (Zero-Margin Models), Chapter 15 (Competitive Advantage), Chapter 16 (Moats)

G6-G25: Additional Global Companies (Summary Format)¶

Due to space constraints, remaining global companies are presented in concise format. Each follows the full template available in the complete appendix.

G6: Microsoft - Cloud Transformation & Enterprise Software¶

Business Model: Enterprise SaaS (Office 365, Azure cloud) + Productivity software Revenue: $211B (FY23) Moat: Switching costs (enterprise integration), scale economies (Azure), ecosystem (Windows, Office) Key Lesson: Successful pivot from perpetual license to subscription under Nadella; Azure growth 30%+ YoY Chapter References: Chapter 9 (SaaS), Chapter 14 (Business Model Transformation)

G7: Google/Alphabet - Ad-Funded Search & Cloud¶

Business Model: Advertising (search, YouTube, display) + Cloud infrastructure Revenue: $307B (FY23), 90% from advertising Moat: Network effects (data), brand (90%+ search share), scale economies Key Lesson: "Free" product funded by ads; search queries → ad targeting → advertiser value → more revenue → better products Chapter References: Chapter 10 (Platforms), Chapter 16 (Moats), Chapter 18 (Winner-Take-All)

G8: Tesla - Vertically Integrated EV Manufacturer¶

Business Model: Direct-to-consumer EV sales + Charging network + Energy storage Revenue: $96.8B (FY23) Moat: Brand, technology (battery, FSD), vertically integrated manufacturing Key Lesson: Direct sales (no dealerships), OTA updates creating continuous improvement, manufacturing innovation (Gigacasting) Chapter References: Chapter 13 (D2C), Chapter 15 (Competitive Advantage)

G9: Walmart - Everyday Low Price Retail¶

Business Model: Discount retail with supply chain excellence Revenue: $648B (FY24) Moat: Scale economies (buying power), logistics infrastructure Key Lesson: EDLP (everyday low prices) + efficient supply chain creates cost leadership Chapter References: Chapter 15 (Cost Leadership), Chapter 21 (Scaling)

G10: Airbnb - Home-Sharing Marketplace¶

Business Model: Two-sided marketplace (hosts and guests), 15% commission Revenue: $9.9B (FY23) Moat: Network effects (local), brand (trust), scale Key Lesson: Solved cold start through Craigslist growth hack; built trust through reviews, insurance, professional photography Chapter References: Chapter 10 (Marketplaces), Chapter 16 (Moats)

G11: Uber - Ride-Hailing Platform¶

Business Model: Marketplace (riders and drivers), 20-30% take rate + surge pricing Revenue: $37.3B (FY23, gross bookings $140B+) Moat: Local network effects, scale, brand Key Lesson: Subsidized both sides early to achieve liquidity; geographic density is key to unit economics Chapter References: Chapter 10 (Platforms), Chapter 25 (Unit Economics)

G12: Shopify - E-commerce Infrastructure for SMBs¶

Business Model: SaaS (subscription) + Merchant solutions (payments, shipping, financing) Revenue: $7.1B (FY23), 30% subscription + 70% merchant solutions Moat: Switching costs, ecosystem (apps, developers), network effects (Shopify Payments) Key Lesson: "Arming the rebels" against Amazon; merchant solutions (2%+ take rate) drive most revenue Chapter References: Chapter 9 (SaaS), Chapter 10 (Platforms)

G13: Salesforce - CRM SaaS Pioneer¶

Business Model: Enterprise SaaS, multi-cloud (Sales Cloud, Service Cloud, Marketing Cloud) Revenue: $34.9B (FY24) Moat: Switching costs (data migration, integrations), ecosystem (AppExchange), scale Key Lesson: "No software" positioning disrupted on-premise CRM; platform approach (AppExchange) creates ecosystem moat Chapter References: Chapter 9 (SaaS), Chapter 17 (Disruption)

G14: Zoom - Video Communications Platform¶

Business Model: Freemium SaaS (free for <40 min, paid for pro features) Revenue: $4.5B (FY24) Moat: Product quality (40 min free creates viral growth), brand, switching costs Key Lesson: Freemium drives product-led growth; COVID accelerated 10 years of adoption into 1 year Chapter References: Chapter 9 (SaaS), Chapter 20 (Growth)

G15: Spotify - Music Streaming Platform¶

Business Model: Freemium (ad-supported free tier, premium subscription $11/month) Revenue: $13.5B (FY23), 90% from subscriptions Moat: Network effects (playlists, social), brand, scale (licensing leverage) Key Lesson: Margins squeezed by music labels (royalties 70%+ of revenue); investing in podcasts to diversify and improve margins Chapter References: Chapter 9 (Subscription), Chapter 26 (Pricing)

G16: Coca-Cola - Brand-Driven Beverage¶

Business Model: Concentrate producer + brand licensing; bottlers manufacture and distribute Revenue: $45.8B (FY23) Moat: Brand (100+ years), global distribution, scale Key Lesson: Asset-light model (concentrate production, not bottling) creates high margins; brand moat allows premium pricing Chapter References: Chapter 15 (Competitive Advantage), Chapter 16 (Branding Moat)

G17: McDonald's - Franchise Quick Service Restaurant¶

Business Model: Franchising (95% of stores franchised), revenue from royalties (5-15%) and real estate leasing Revenue: $25.5B (FY23) Moat: Brand, scale, franchise system, real estate Key Lesson: Makes money from royalties + real estate, not burger sales; franchisees operate stores, McDonald's provides brand and systems Chapter References: Chapter 21 (Scaling via Franchising)

G18: Nike - Brand-Driven Sportswear¶

Business Model: Branded footwear and apparel, direct-to-consumer (40%) + wholesale (60%) Revenue: $51.2B (FY23) Moat: Brand (athlete endorsements), design, distribution Key Lesson: Brand premium allows 45%+ gross margins; shifting to D2C (Nike.com, Nike stores) to capture more margin Chapter References: Chapter 13 (D2C), Chapter 15 (Brand Moat)

G19: Visa - Payment Network¶

Business Model: Four-party payment network, interchange fees (1-3% of transaction value) Revenue: $32.7B (FY23) Moat: Network effects (merchants accept Visa because consumers have it; consumers carry Visa because merchants accept it), scale, switching costs Key Lesson: "Toll booth" on global commerce; asset-light model with 50%+ operating margins Chapter References: Chapter 10 (Platform/Network), Chapter 12 (Fintech)

G20: Intel - Semiconductor Manufacturing¶

Business Model: CPU design and manufacturing for PCs, data centers Revenue: $54.2B (FY23) Moat: Process power (manufacturing expertise), scale, switching costs Key Lesson: Lost process leadership to TSMC; struggling with fabless competitors (AMD, Nvidia); massive capex requirements create barriers Chapter References: Chapter 15 (Competitive Advantage Erosion)

G21: Procter & Gamble - Consumer Goods Conglomerate¶

Business Model: Branded consumer goods (Tide, Gillette, Pampers, Oral-B), wholesale to retailers Revenue: $82.0B (FY23) Moat: Brand portfolio, distribution, scale (R&D and marketing amortized) Key Lesson: Multi-brand strategy (Tide, Gain, Downy in laundry category) captures different segments; innovation pipeline creates differentiation Chapter References: Chapter 15 (Brand Moat)

G22: Toyota - Lean Manufacturing Pioneer¶

Business Model: Automotive manufacturing with dealer network Revenue: $278.8B (FY24) Moat: Process power (Toyota Production System/Lean), brand (reliability), scale Key Lesson: TPS (continuous improvement, just-in-time) creates manufacturing efficiency; hybrid technology leadership Chapter References: Chapter 15 (Process Power)

G23: SpaceX - Reusable Rocket Launch Services¶

Business Model: Commercial launch services + Starlink satellite internet Revenue: $6B+ (2023 estimate, private company) Moat: Technology (reusable rockets 10x cost advantage), vertical integration, cornered resource (launch licenses) Key Lesson: First principles redesign of aerospace (reusable boosters reduce cost by 90%); vertical integration (builds rockets, engines, avionics) Chapter References: Chapter 2 (First Principles), Chapter 15 (Cost Advantage)

G24: Walmart India (Discontinued) - Wholesale B2B Model¶

Business Model: Cash & Carry wholesale for kiranas and businesses (B2B, not B2C due to FDI restrictions) Status: Exited India in 2023, sold to Flipkart Lesson: FDI restrictions prevented multi-brand retail; B2B wholesale had limited market vs. established kiranas and metro stores Chapter References: Chapter 23 (Market Entry Challenges), Chapter 31 (Regulatory Environment)

G25: Alibaba - China E-commerce & Cloud¶

Business Model: Marketplace (Taobao, Tmall) + Cloud (Alibaba Cloud) + Logistics (Cainiao) + Payments (Alipay) Revenue: $130B+ (FY24) Moat: Network effects (buyers/sellers), scale, ecosystem Key Lesson: Taobao (C2C) free to grow network, Tmall (B2C) charges merchants; Alipay solved trust in Chinese e-commerce (escrow) Chapter References: Chapter 10 (Marketplace), Chapter 18 (Winner-Take-All in China)

PART B: INDIAN BUSINESS MODELS (25)¶

I1: Reliance Jio - Telecom Platform Play¶

One-Line Description: Telecom network leveraging cross-subsidization from oil/retail to capture market with free voice and data, transforming into digital services platform.

Business Model Canvas¶

Customer Segments:

• Mass market consumers (urban and rural)
• SMBs (Jio Business)
• Enterprises (connectivity and cloud)
• Content consumers (JioCinema, JioSaavn, JioTV)

Value Propositions:

• Free voice calls (0 paisa/minute vs. 0.50-1 paisa incumbents)
• Cheap data (initially 1GB/day free for 3 months, then 28 days = 1GB/day for ₹149 vs. ₹250 pre-Jio)
• 4G coverage (competitors were 2G/3G)
• Bundled content (JioCinema, hotstar, etc.)
• Device bundling (JioPhone at ₹0 effective price with security deposit)

Channels:

• Reliance Retail stores (15,000+)
• Online (MyJio app, website)
• Third-party mobile retailers
• Kirana stores (recharge distribution)

Customer Relationships:

• Self-service (MyJio app for account management)
• Retail store support
• Call centers
• Community engagement (tier ⅔ cities)

Revenue Streams:

• Mobile services: ₹96,000 Cr (86% of revenue, FY23)
• Prepaid data/voice plans
• Postpaid plans
• Home broadband (JioFiber): ₹8,000 Cr (7%)
• Enterprise connectivity: ₹4,000 Cr (4%)
• Digital services: ₹3,000 Cr (3%)

Key Resources:

• 4G/5G network infrastructure (₹3L+ Cr invested)
• Spectrum: Largest spectrum holding in India
• Retail distribution: Reliance Retail footprint
• Parent company cash: Reliance Industries cross-subsidization
• Brand: Associated with Reliance quality and scale

Key Activities:

• Network operations and expansion
• Technology development (Jio5G, Jio platforms)
• Customer acquisition and retention
• Device partnerships (JioPhone)
• Content acquisition and partnerships

Key Partnerships:

• Reliance Retail (distribution)
• Content providers (Disney, HBO, Sony)
• Device manufacturers (Samsung, etc. for phones)
• Tower companies (Jio Infratel)
• Facebook, Google (minority investments in Jio Platforms)

Cost Structure:

• Network operations and maintenance: 35%
• Spectrum and license fees: 8%
• Device subsidies: 5%
• Content licensing: 3%
• Sales and marketing: 4%
• G&A: 3%
• Operating margin: 42% (industry-leading)

Revenue Model Type¶

Hybrid: Subscription (prepaid/postpaid plans) + Freemium (free voice, paid data) + Bundling (device + service)

Key Metrics¶

• Subscribers: 489M (Q3 FY24, #1 in India)
• ARPU: ₹179.7/month (improving from ₹122 low in 2020)
• Data Consumption: 28 GB/user/month (highest in world)
• Market Share: 40%+ (subscribers), 42%+ (revenue)
• Churn: <1%/month (low due to prepaid model and switching friction)
• Investment: ₹3.5L Cr in network (2016-2023)

Unit Economics Summary¶

Entry-Level Customer (₹199/month plan = 2GB/day):

• Monthly Revenue: ₹199
• Network Cost (data, voice): ₹70
• Spectrum/License (allocated): ₹20
• Support + Billing: ₹10
• Contribution Margin: ₹99 (50%)
• CAC: ₹200-300 (retail acquisition)
• Payback Period: 2-3 months
• Customer Lifetime: 5+ years
• LTV: ₹5,000-8,000

Jio's Economics vs. Incumbents:

• Greenfield 4G (no legacy 2G/3G) = 40% lower opex/GB
• Reliance Industries cross-subsidy allowed free voice
• Retail distribution (15,000 stores) = lower CAC than standalone telcos
• Massive initial investment (₹2L Cr) created scale advantage from Day 1

Moat Analysis¶

Primary Moats:

1. Scale Economies (9/10): 489M subs = massive network utilization; opex/GB 40% lower than competitors due to efficient 4G-only network
2. Counter-Positioning (8/10): Free voice forced incumbents (Airtel, Vodafone-Idea) to match, collapsing their revenue (Vodafone-Idea nearly bankrupt, required govt bailout)
3. Cornered Resource (7/10): Reliance Industries cash (can withstand losses); largest spectrum holding
4. Switching Costs (6/10): Number portability reduces switching costs, but prepaid model and JioPhone device locks create some friction

Total Moat Score: 30/40 - Strong position

Strategic Lessons¶

1. Cross-Subsidization as Weapon: Reliance Industries (oil, retail, telecom, media) can subsidize Jio losses for years; standalone telcos (Airtel, Vodafone) cannot match
2. Blitzscaling with Free: Launch with 3 months free (1GB/day data + free voice) captured 100M subs in 170 days; incumbents lost pricing power permanently
3. Vertical Integration: Own fiber network, towers, retail distribution, devices (JioPhone) reduces dependency on partners
4. Platform Evolution: Started as telco, expanding to digital services (JioCinema, JioMart, JioFinance) to increase ARPU and LTV
5. Regulatory Arbitrage: Entered when spectrum prices fell (2015 auction vs. 2010 peak); incumbents had legacy spectrum at higher cost

References¶

• Reliance Industries Annual Report FY23 [Source: ril.com/investor-relations]
• TRAI Performance Indicator Reports [Source: trai.gov.in]
• "Ambani & Sons" by Hamish McDonald
• Industry analysis from CLSA, Goldman Sachs [Source: Various equity research reports]

Chapter References: Chapter 7 (Competitive Dynamics), Chapter 11 (Zero-Margin), Chapter 17 (Disruption), Chapter 19 (Game Theory), Chapter 31 (Indian Context)

I2: Zerodha - Zero-Brokerage Stock Trading¶

One-Line Description: Discount brokerage with zero-commission equity delivery trading, monetizing through F&O, currency, commodity, and educational content ecosystem (Varsity).

Business Model Canvas¶

Customer Segments:

• Retail traders (F&O, intraday)
• Long-term investors (equity delivery)
• First-time investors (education-focused)
• Active traders (Zerodha Streak algo platform)

Value Propositions:

• ₹0 brokerage on equity delivery trades (vs. 0.1-0.5% traditional brokers)
• Flat ₹20 per trade F&O, intraday, currency, commodity (regardless of size)
• Clean, ad-free trading platform (Kite)
• Free education (Varsity - 5M+ monthly users)
• Transparent pricing (no hidden charges)
• Algorithmic trading (Streak - no-code algo platform)

Channels:

• Online self-serve signup
• Zerodha.com and Kite app
• Organic (word-of-mouth, Varsity content marketing)
• Zerodha Varsity (education → conversion funnel)

Customer Relationships:

• Self-service trading platform
• Zerodha Varsity (educational content)
• Ticketing system for support
• Community (TradingQ&A forums)
• No relationship managers (unlike traditional brokers)

Revenue Streams:

• F&O trading: ₹2,200 Cr (70% of revenue, FY23)
• Commodity, currency, intraday: ₹600 Cr (19%)
• Zerodha Securities lending (Coin): ₹180 Cr (6%)
• Account opening fees (₹200): ₹50 Cr (2%)
• Interest on client funds: ₹100 Cr (3%)
• Total: ₹3,130 Cr (FY23)
• PAT Margin: 50%+ (₹2,000 Cr profit)

Key Resources:

• Technology: Kite trading platform, Streak algo, Coin investment platform
• Zerodha Varsity: Educational content (SEO asset)
• Brand: "Honest broker" positioning
• Licenses: SEBI-registered stockbroker, NSE/BSE memberships
• Bootstrapped/profitable: No VC pressure to grow unprofitably

Key Activities:

• Trading platform development and maintenance
• Content creation (Varsity)
• Compliance and risk management
• Customer support
• Educational initiatives

Key Partnerships:

• NSE, BSE (exchanges)
• CDSL, NSDL (depositories)
• Payment gateways (Razorpay, etc.)
• Mutual fund platforms (for Coin)
• SEBI, exchanges (regulatory compliance)

Cost Structure:

• Technology (developers, infrastructure): 15%
• Exchange transaction charges: 35%
• Operations and support: 8%
• Compliance and regulatory: 3%
• Marketing: <1% (mostly content marketing)
• Operating margin: 55%+

Revenue Model Type¶

Freemium + Usage-Based: Free equity delivery, paid F&O/intraday/currency/commodity trading

Key Metrics¶

• Active Clients: 7M+ (FY23)
• Daily Trades: 3-5M (5% of NSE volumes)
• ARPU: ₹450/month (₹5,400/year)
• F&O Contribution: 70% of revenue from 30% of clients
• Zerodha Varsity Users: 5M+ monthly readers
• Net Profit Margin: 50%+ (industry: 20-30%)
• Bootstrap: ₹0 external funding, promoter-owned

Unit Economics Summary¶

Active F&O Trader (30% of clients, 70% of revenue):

• Monthly Trades: 40 F&O trades
• Revenue per Trade: ₹20
• Monthly Revenue: ₹800
• Annual Revenue: ₹9,600
• Transaction Costs (exchange, clearing): ₹5,000
• Technology + Support: ₹500
• Net Margin: ₹4,100 (43%)

Equity Delivery Investor (70% of clients, 0% brokerage revenue):

• Monthly Delivery Trades: 2-5
• Brokerage Revenue: ₹0
• Revenue from DP charges, interest on funds: ₹50/month
• Annual Revenue: ₹600
• Cost to serve: ₹300
• Net Margin: ₹300 (50%)

Blended ARPU:

• Average: ₹450/month (₹5,400/year)
• CAC: ₹100-200 (content marketing, organic)
• Payback: <1 month
• Customer Lifetime: 5+ years
• LTV: ₹27,000+
• LTV:CAC: 135x+

Moat Analysis¶

Primary Moats:

1. Counter-Positioning (9/10): Traditional full-service brokers (ICICI Direct, HDFC Securities, Kotak Securities) cannot match zero-commission model without destroying 60%+ of revenue; tied to parent bank cross-sell mandates
2. Branding (8/10): "India's largest broker" with "honest, transparent pricing"; Varsity positions Zerodha as educator, not salesperson
3. Process Power (7/10): Kite platform with 10M+ lines of code; Varsity content (500+ modules) took 8+ years to build
4. Scale Economies (6/10): 7M clients amortize technology costs; leverage with exchanges for lower transaction fees

Total Moat Score: 30/40 - Strong position, but threatened by new zero-commission models (Groww, Upstox)

Strategic Lessons¶

1. Zero-Commission as Disruptive Positioning: Eliminated equity delivery brokerage (40% of traditional broker revenue), forcing industry repricing; Zerodha makes money on F&O, not delivery
2. Content as Acquisition Channel: Zerodha Varsity (SEO powerhouse) drives 30%+ of signups organically; CAC <₹200 vs. ₹2,000 for paid ads
3. Bootstrap Discipline: No VC funding = no pressure to grow unprofitably; Zerodha grew from 10K clients (2015) to 7M (2023) without burning cash
4. Technology as Differentiator: Kite platform faster and cleaner than traditional broker apps; Streak (algo trading) expands addressable market
5. Transparent Pricing: Flat ₹20/trade (regardless of size) vs. 0.05% × trade value (incentivizes customer to trade large, aligns with customer)

References¶

• Zerodha blog (zerodha.com/z-connect) [Source: zerodha.com]
• Nithin Kamath (Founder) Twitter and interviews
• NSE brokerage statistics [Source: nseindia.com]
• "Unlocking Unicorn Secrets" by Apoorv Ranjan Sharma (Zerodha case study)

Chapter References: Chapter 2 (First Principles), Chapter 11 (Zero-Margin), Chapter 12 (Fintech), Chapter 22 (Positioning), Chapter 32 (India-Only Models)

I3-I25: Additional Indian Companies (Summary Format)¶

Due to space constraints, remaining Indian companies are presented in concise format.

I3: Tata Group - Diversified Conglomerate¶

Business Model: Multi-sector conglomerate (automotive, steel, IT, consumer goods, aviation, hospitality) Revenue: $128B+ across group companies Moat: Brand, diversification, access to capital, management talent Key Lesson: Conglomerate model works in India (vs. declining in US); cross-holding structure, Tata brand premium Chapter References: Chapter 20 (Diversification), Chapter 23 (Global Expansion - JLR, Tetley, Corus), Chapter 31 (Indian Conglomerates)

I4: HDFC Bank - Process Power in Banking¶

Business Model: Universal bank (retail, corporate, treasury), liability franchise Revenue: ₹1.9L Cr (FY24) Moat: Switching costs, process power (risk management, cross-sell), scale Key Lesson: Lowest NPA among major banks (1-1.5% vs. 5-8% PSU banks); superior underwriting, customer service, technology Chapter References: Chapter 15 (Process Power), Chapter 16 (Moats)

I5: HUL - Distribution Moat in FMCG¶

Business Model: Branded FMCG (soaps, detergents, foods, personal care), wholesale to kiranas and modern retail Revenue: ₹60,000 Cr (FY24) Moat: Brand portfolio (Dove, Surf Excel, Lux, Lifebuoy), distribution (7M+ outlets), scale Key Lesson: Reaches 90%+ of Indian households; rural distribution network built over 80+ years is competitive moat Chapter References: Chapter 15 (Brand + Distribution Moat), Chapter 31 (Indian FMCG)

I6: Maruti Suzuki - Dominant Auto Market Share¶

Business Model: Passenger vehicle manufacturing with dealer network Revenue: ₹1.3L Cr (FY24), 40%+ market share Moat: Brand, scale (cost advantage), dealer network, after-sales service Key Lesson: 40%+ market share sustained for 30+ years; focus on affordability and fuel efficiency matches Indian consumer needs Chapter References: Chapter 15 (Scale Economies), Chapter 31 (Indian Context)

I7: Asian Paints - Distribution + Innovation in Decorative Paints¶

Business Model: Decorative paints (80%) and industrial coatings (20%), sold through 65,000+ dealers Revenue: ₹34,000 Cr (FY24) Moat: Brand, distribution (tinting machines at dealers), supply chain (24-hour delivery) Key Lesson: Tinting machines at dealers create switching costs; supply chain excellence (forecasting, inventory management) enables lower working capital Chapter References: Chapter 15 (Value Chain Excellence), Chapter 24 (Working Capital Management)

I8: ITC - Cigarettes Fund Diversification¶

Business Model: Cigarettes (78% of EBIT), Hotels, FMCG, Agri-business, Paperboards Revenue: ₹79,000 Cr (FY24) Moat: Cigarette brands (ITC Gold Flake, Wills Navy Cut), distribution, diversification Key Lesson: Cigarette cash cow (75%+ EBIT) funds diversification into FMCG (Aashirvaad, Sunfeast, Bingo) to reduce tobacco dependency Chapter References: Chapter 20 (Diversification), Chapter 24 (Capital Allocation)

I9: Bajaj Finance - Consumer Lending at Scale¶

Business Model: NBFC focused on consumer durables financing, personal loans, SME loans Revenue: ₹40,000 Cr (FY24) Moat: Distribution (70,000+ PoS locations), data-driven underwriting, brand Key Lesson: EMI financing (0% interest, merchant pays) drives consumer durables sales; cross-sell (personal loans, credit cards) to existing customers Chapter References: Chapter 12 (Fintech), Chapter 25 (Unit Economics)

I10: Infosys - IT Services Export¶

Business Model: IT services and consulting (staff augmentation, application management, digital transformation) Revenue: ₹1.6L Cr (FY24) Moat: Client relationships (switching costs), scale, delivery excellence, talent pool Key Lesson: Global Delivery Model (offshore + onsite) creates 30-40% cost advantage vs. Accenture, IBM Chapter References: Chapter 21 (Scaling), Chapter 23 (Global Expansion)

I11: TCS - Largest IT Services Company¶

Business Model: IT services, consulting, BPO Revenue: ₹2.4L Cr (FY24) Moat: Client relationships, scale, Tata brand, delivery excellence Key Lesson: $50B+ revenue, largest private sector employer in India (600K+ employees) Chapter References: Chapter 21 (Scaling), Chapter 28 (Execution Excellence)

I12: Zomato - Food Delivery Platform (Journey to Profitability)¶

Business Model: Food delivery marketplace (60% take rate split: 15-20% from restaurants, 40-45% delivery fee from consumers), Blinkit (quick commerce) Revenue: ₹11,500 Cr (FY24) Moat: Local network effects (restaurant density), brand, scale Key Lesson: Achieved food delivery contribution margin positive (FY24) after years of losses; Blinkit acquisition (quick commerce) expands TAM Chapter References: Chapter 10 (Marketplace), Chapter 25 (Unit Economics Evolution), Chapter 30 (Turnaround)

I13: Swiggy - Food Delivery + Quick Commerce¶

Business Model: Food delivery (20-25% take rate) + Instamart (quick commerce 10-min grocery delivery) Revenue: ₹11,000 Cr (FY24) Moat: Local network effects, dark store density (Instamart), brand Key Lesson: Quick commerce (Instamart) improving unit economics faster than food delivery; density is key (order fulfillment from 2-3 km radius) Chapter References: Chapter 10 (Marketplace), Chapter 25 (Unit Economics)

I14: PhonePe - UPI Payments Leader¶

Business Model: UPI payments (0 MDR, monetize through financial services cross-sell), insurance, lending, investments Revenue: ₹5,000 Cr+ (FY24 estimate) Moat: Network effects (user base), brand, UPI transaction volume leadership (47% share) Key Lesson: UPI has 0 MDR (no transaction revenue); PhonePe monetizes through insurance commissions, lending referrals, merchant services Chapter References: Chapter 11 (Zero-Margin), Chapter 12 (Fintech), Chapter 32 (India-Only Models - UPI)

I15: Razorpay - Payment Gateway for Businesses¶

Business Model: Payment gateway (2% transaction fee), neobanking (Razorpay X), capital, payroll Revenue: ₹2,500 Cr (FY23) Moat: Developer-first positioning, switching costs (API integration), ecosystem (X, Capital, Payroll) Key Lesson: Developer-friendly API (7 lines of code); expanding from payments to full financial stack increases LTV Chapter References: Chapter 12 (Fintech), Chapter 21 (Scaling), Chapter 22 (Positioning)

I16: Meesho - Social Commerce for Bharat¶

Business Model: Zero-commission e-commerce marketplace, reseller network (15M+ resellers), funded by logistics and advertising revenue Revenue: ₹7,615 Cr (FY24) Moat: Reseller network (social commerce), Bharat focus (tier ⅔/4), zero commission Key Lesson: Zero commission attracts price-sensitive Bharat consumers; resellers (homemakers, small entrepreneurs) drive customer acquisition organically Chapter References: Chapter 11 (Zero-Margin), Chapter 13 (E-commerce), Chapter 32 (India-Only Models - Social Commerce)

I17: Flipkart - E-commerce Marketplace (Walmart-Owned)¶

Business Model: Horizontal e-commerce marketplace + Myntra (fashion) + logistics Revenue: ₹70,000 Cr+ (FY24 estimate) Moat: Scale, brand, logistics (Ekart), seller ecosystem Key Lesson: Walmart acquisition (2018, $16B) provided capital to compete with Amazon; Big Billion Days sale drives 40%+ annual GMV Chapter References: Chapter 10 (Marketplace), Chapter 23 (M&A - Walmart Entry)

I18: Nykaa - Omnichannel Beauty E-commerce¶

Business Model: E-commerce (beauty, fashion, wellness) + 100+ offline stores, inventory-led + marketplace Revenue: ₹6,400 Cr (FY24) Moat: Brand (beauty authority), omnichannel (online + offline), private label (15% of sales) Key Lesson: Profitable e-commerce (rare in India); inventory-led model (vs. pure marketplace) creates better customer experience and margins Chapter References: Chapter 13 (E-commerce), Chapter 22 (Positioning)

I19: Lenskart - Omnichannel Eyewear¶

Business Model: Vertically integrated eyewear (design, manufacturing, retail, e-commerce), 1,500+ stores + online Revenue: ₹5,000 Cr (FY24) Moat: Vertical integration (own manufacturing), omnichannel, brand Key Lesson: Home eye test (try before you buy), 3D try-on (AR), 1-hour delivery create differentiation; offline stores drive 70% of revenue Chapter References: Chapter 13 (D2C), Chapter 22 (Omnichannel)

I20: Urban Company - Services Marketplace¶

Business Model: On-demand services marketplace (beauty, repairs, cleaning), managed supply (trained professionals) Revenue: ₹800 Cr (FY24) Moat: Supply-side marketplace (trained professionals), brand, density Key Lesson: Supply-side quality control (training, certification, background checks) creates trust and differentiation vs. unorganized sector Chapter References: Chapter 10 (Marketplace - Managed Supply), Chapter 25 (Unit Economics)

I21: Freshworks - Indian SaaS Success (Global)¶

Business Model: SMB and mid-market SaaS (customer support, CRM, ITSM) Revenue: $600M+ (FY23), IPO Nasdaq 2021 Moat: Product-led growth, pricing (50% cheaper than Salesforce/Zendesk), switching costs Key Lesson: Chennai-based global SaaS success; PLG motion (free trial → paid) with lower pricing than US incumbents Chapter References: Chapter 9 (SaaS), Chapter 21 (Scaling from India to Global)

I22: Zoho - Bootstrapped SaaS Giant¶

Business Model: Enterprise and SMB SaaS (40+ products: CRM, Finance, HR, IT management) Revenue: $1B+ (2023 estimate, private company) Moat: Product breadth (40+ products), pricing (⅕th of Salesforce), bootstrap (no VC pressure), privacy positioning Key Lesson: Bootstrapped since 1996; profitable since inception; built in India (Chennai, Tenkasi) with no Silicon Valley office Chapter References: Chapter 9 (SaaS), Chapter 21 (Bootstrap Scaling)

I23: DMart - EDLP Retail¶

Business Model: Supermarket chain (300+ stores), EDLP (everyday low price), own inventory Revenue: ₹51,000 Cr (FY24) Moat: Cost structure (own real estate, low working capital), EDLP, store locations Key Lesson: Cluster-based expansion (saturate city before expanding); own real estate (no rent inflation); 45-day credit from suppliers vs. 7-day inventory turnover creates negative working capital Chapter References: Chapter 13 (Retail), Chapter 24 (Working Capital Management)

I24: PolicyBazaar - Insurance Aggregator¶

Business Model: Insurance comparison and aggregation, commissions from insurers (10-40% of premium) Revenue: ₹3,000 Cr (FY24) Moat: Brand (insurance comparison), scale (leads for insurers), regulatory moat (IRDAI license) Key Lesson: Educated consumers on insurance, digitized purchase process; commission-based model (insurers pay for leads) Chapter References: Chapter 10 (Aggregator Model), Chapter 12 (Fintech)

I25: PhysicsWallah - EdTech for Bharat¶

Business Model: Online test prep (JEE, NEET) at ₹3,000-6,000/year (vs. ₹1.5L offline coaching), freemium (YouTube + paid courses) Revenue: ₹1,000 Cr (FY24) Moat: Founder-led (Alakh Pandey with 10M+ YouTube subscribers), affordability, vernacular content Key Lesson: 10x cheaper than offline coaching (Aakash, Allen); freemium (YouTube free content → paid courses); targets tier ⅔ cities Chapter References: Chapter 9 (Freemium), Chapter 31 (Bharat Market), Chapter 32 (India-Only Models)

Summary Statistics¶

Global Companies (25):

• B2C: 12 (Amazon, Apple, Netflix, Coca-Cola, McDonald's, Nike, etc.)
• B2B/Enterprise: 8 (Microsoft, Salesforce, Stripe, Zoom, Intel, etc.)
• Platform/Marketplace: 10 (Uber, Airbnb, Shopify, Google, Alibaba, etc.)
• Hardware: 4 (Apple, Tesla, Intel, Toyota)
• SaaS: 5 (Microsoft, Salesforce, Zoom, Shopify, Spotify)

Indian Companies (25):

• B2C: 15 (Zomato, Swiggy, Flipkart, Nykaa, Lenskart, DMart, etc.)
• B2B/Enterprise: 4 (TCS, Infosys, Freshworks, Zoho)
• Platform/Marketplace: 8 (PhonePe, Meesho, Urban Company, Zomato, Swiggy, etc.)
• Fintech: 6 (PhonePe, Razorpay, Zerodha, Bajaj Finance, HDFC Bank, PolicyBazaar)
• Traditional with Moats: 6 (HUL, Asian Paints, Maruti, ITC, Tata Group, Reliance)

Revenue Model Distribution (All 50):

• Subscription/SaaS: 12
• Marketplace/Platform: 14
• Hybrid: 8
• Transaction-Based: 6
• Direct Sales: 10

Moat Type Distribution (Primary Moat):

• Scale Economies: 15
• Network Effects: 12
• Switching Costs: 10
• Branding: 8
• Process Power: 5

References and Further Reading¶

Books¶

1. "Business Model Generation" by Alexander Osterwalder (2010)
2. "7 Powers" by Hamilton Helmer (2016)
3. "Platform Revolution" by Parker, Van Alstyne, Choudary (2016)

Reports and Data Sources¶

1. Company Annual Reports and 10-K/10-Q filings (SEC.gov for US, BSE/NSE for India)
2. Earnings call transcripts (public companies)
3. Industry reports from Bain, BCG, McKinsey
4. Equity research from Morgan Stanley, Goldman Sachs, Jefferies, CLSA

Indian Context¶

1. Economic Times, Mint, Business Standard (business news)
2. Inc42, Entrackr, YourStory (startup news)
3. TRAI, SEBI, RBI reports (regulatory data)

Related Content¶

Key Chapter Connections¶

• Chapter 8: Revenue Models - Revenue model foundations and monetization strategies
• Chapter 9: SaaS & Subscription Models - Deep dive into subscription economics (Salesforce, Microsoft, Netflix)
• Chapter 10: Marketplace & Platform Models - Platform business models (Amazon, Uber, Airbnb)
• Chapter 11: Zero-Margin & Adjacent Monetization - Costco, Jio, PhonePe zero-margin strategies
• Chapter 12: Fintech & Payments Models - Stripe, Razorpay, Zerodha, PhonePe business models
• Chapter 13: E-commerce & D2C Models - Nykaa, Lenskart, Meesho models
• Chapter 31: Strategy in India - Indian business context for 25 Indian case studies
• Chapter 32: India-Only Business Models - UPI, Quick Commerce, Social Commerce models

Complementary Appendices¶

• Appendix A: Strategy Frameworks Library - Apply frameworks (VRIO, Seven Powers, Business Model Canvas) to these case studies
• Appendix E: Case Study Index - Full case study index with cross-references
• Appendix C: Quantitative Analysis Tools - Unit economics calculators for modeling these business models

Navigation¶

Appendix B: 50 Business Models Decoded Version 1.0 | November 2025 Part of "The Strategy Engine" by [Author]