Business Model Taxonomy

The Business Model taxonomy captures the fundamental way a company creates value and generates revenue. It focuses on the structural strategy behind the company’s operations, such as offering services, selling products, licensing intellectual property, facilitating transactions, or operating as a public-sector or mission-driven organization.

Business models reflect operational strategy, not industry classification. For example, a company in the software industry may operate as Software-as-a-Service, Business-to-Business, Subscription-Based, or Enterprise, depending on how it sells and delivers its products.

A single company may have multiple business models, but each assigned model should represent a distinct and significant component of the company’s core strategy and revenue-generating operations.

CategoryTaxonomy LabelDescription
Service-Oriented ModelsService ProviderBusinesses offering professional, technical, or personal services. This excludes mission-driven organizations that provide services for humanitarian purposes.
Service-Oriented ModelsEducationInstitutions or platforms delivering educational content or services.
Service-Oriented ModelsHealthcareOrganizations providing medical, pharmaceutical, or wellness services.
Service-Oriented ModelsEntertainmentCompanies producing or distributing leisure, media, cultural, or entertainment content.
Service-Oriented ModelsLogistics/TransportationBusinesses handling the movement of goods or people.
Product-Oriented ModelsManufacturingCompanies producing physical goods from raw materials, parts, or components.
Product-Oriented ModelsRetailBusinesses selling goods directly to consumers through physical or digital storefronts.
Product-Oriented ModelsWholesaleCompanies selling goods in bulk to retailers, distributors, or other businesses.
Digital-First and Market-Driven ModelsSoftware-as-a-ServiceCloud-based software platforms typically offered through subscription or recurring access.
Digital-First and Market-Driven ModelsE-commerceOnline businesses selling goods or services through digital channels.
Digital-First and Market-Driven ModelsSubscription-BasedCompanies generating revenue through recurring customer subscriptions.
Digital-First and Market-Driven ModelsMarketplacePlatforms connecting buyers and sellers, service providers and customers, or other supply-and-demand participants.
Digital-First and Market-Driven ModelsOn-DemandBusinesses delivering services or products quickly through digital or platform-based channels.
Digital-First and Market-Driven ModelsBusiness-to-BusinessCompanies selling products or services primarily to other businesses.
Digital-First and Market-Driven ModelsBusiness-to-ConsumerCompanies selling products or services directly to individual consumers.
Digital-First and Market-Driven ModelsEnterpriseCompanies targeting large organizations with high-value, complex, or large-scale products and services.
Revenue-Oriented ModelsLicensingCompanies generating revenue by granting rights to use intellectual property, technology, content, trademarks, or other protected assets.
Revenue-Oriented ModelsFranchisingCompanies expanding or generating revenue through licensed franchise operations.
Revenue-Oriented ModelsAdvertising-BasedCompanies generating revenue by selling advertising space, promoted placements, or audience access.
Revenue-Oriented ModelsCrowdfundingPlatforms or organizations raising money from large groups of individuals.
Asset-Driven and Investment-Based ModelsInvestment ManagementCompanies managing pooled funds, portfolios, or investments to generate financial returns.
Asset-Driven and Investment-Based ModelsAsset ManagementCompanies managing tangible or intangible assets on behalf of clients, investors, or stakeholders.
Asset-Driven and Investment-Based ModelsReal Estate DevelopmentCompanies designing, financing, developing, or building real estate properties.
Mission-Oriented and Public Sector ModelsNon-Profit/NGOMission-driven organizations operating without a primary profit motive.
Mission-Oriented and Public Sector ModelsGovernment/Public SectorPublic institutions or government-backed organizations providing services funded or mandated by the public sector.