A local business that I frequent is Walmart. I go there on almost a weekly basis to get groceries and other necessities. The three main components of a business model are its business commerce, business occupation, and business organization. Business as a commerce is the process in which people produce, exchange, and trade goods and services. Walmart’s business commerce is trade. As Walmart has expanded, they are engaged in not only the trade of goods, but also services. Most Walmart stores have a variety of services that are provided, from a pharmacy, to a photo studio, hair care salon, etc. Business as an occupation is the set of skills and abilities that an organization has that allows them to create value in the goods and services that they offer. In the case of Walmart, a highly efficient set of skills and abilities exist. The company is set up to encourage efficiency and mass purchasing power, which allows Walmart to undercut its competitor’s pricing. Furthermore, Walmart invests significant amounts of money in employee training, which further supports the skill set of the business. Business as an organization is the system of authority and relationships that control interactions between people and move the organization towards a common goal. Walmart’s organization is one of its strong points, as it is organized according to a divisional structure, utilizing a market structure. Walmart, over the years, has greatly expanded its market structure, which allows it to offer a multitude of products and services at lower prices than the competition.
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