Table 1 Differences between traditional... | Emerald Publishing

Table 1

Differences between traditional and subscription business models

Business model component	Product model	Subscription model
Value propositions	- New car with warranty and service for the first year - Customer owns the car indefinitely	Flexible access - Price transparency - All-inclusive offer - No ownership-related responsibilities
Customer relationships	No direct contact with final customer	Direct relationship with customer through digital and physical touchpoints
Revenue model	- Up-front payment - Transfer of ownership	Recurring monthly payments
Sales channels	Sales through dealerships	Direct online sales
Key competencies	- Manufacturing	- Customer journey management - Fleet management
Dealers' roles	- Buying cars from the manufacturer and selling to customers - Managing customer journeys and relationships - Setting competitive car prices	- Assisting customers with subscription processes

Business model component	Product model	Subscription model
Value propositions	- New car with warranty and service for the first year - Customer owns the car indefinitely	Flexible access- Price transparency - All-inclusive offer - No ownership-related responsibilities
Customer relationships	No direct contact with final customer	Direct relationship with customer through digital and physical touchpoints
Revenue model	- Up-front payment - Transfer of ownership	Recurring monthly payments
Sales channels	Sales through dealerships	Direct online sales
Key competencies	- Manufacturing	- Customer journey management - Fleet management
Dealers' roles	- Buying cars from the manufacturer and selling to customers - Managing customer journeys and relationships - Setting competitive car prices	- Assisting customers with subscription processes

Source(s): The above table was created by the authors