Fixin' Business Models One Stitch at a Time

Hello everyone!  This week we are going to talk about Business models and specifically take a look at Stitch Fix.  Like I mentioned last week, I am taking a break from the typical travel post for now, but will be back with a new exciting adventure in April!  By looking at most companies’ websites, you are able to figure out what general type of business model they have and are utilizing.  The business models discussed in Internet Marketing Integrating Online & Offline Strategies by Roberts and Zahay are: brokerage, advertising, infomediary, merchant, manufacture, community, subscription, and utility.  Out of the eight types of business models listed here, I would say that Stitch Fix uses Brokerage, Merchant, and Subscription, with each type of model being used in a percentage.  The largest percentage of their business model is Merchant because they are providing goods, in the form of clothes and accessories, and are allowing the customers to designate a day they would like the product; providing the ability to receive a Fix a close together or far apart as they would like.  Then, equal but lesser percentages of their business model would be the Brokerage and Subscription.  The Brokerage model can be seen in the types of clothing Stitch Fix sends their customers. They are small producers, just starting out and needing a platform to sell their clothing lines; who would have otherwise not been able to reach so many customers.  The Subscription model can be seen in the ability of the site to send you a Fix every month if you chose the option.  Again, this allows you to set a specific time frame of how often you would like a Fix; from once a week to once a month, with the added benefit that the site will continue to schedule the Fixes for you.  There is another path the company could have taken with their business model, however, utilizing a Community model like what you would see on Etsy.  While this would be a good way to connect the producers to the customers it would not be as profitable for Stitch Fix, nor would their business have grown as quickly.  That is why I think that Stitch Fix is doing a great job with the business models they are currently using. Please let me know your thoughts.  Do you agree with my analysis?  Do you have any other examples you think would be help?  Thank you for reading everyone!  TTFN!

Roberts, M. L., & Zahay, D. (n.d.). Internet Marketing Integrating Online & Offline Strategies (Third ed.).