CMA Intermediate · Operations Management and Strategic Management · Digital Strategy
A Pune-based company runs an online platform that connects independent tutors with students and earns a commission on every session booked, without employing the tutors or owning any classrooms. Which digital business model does this best illustrate?
This is a marketplace or platform model. The company matches independent tutors with students and earns a commission per booking, without owning the supply or any classrooms. Revenue comes from facilitating transactions between two sides, not from recurring fees or a free-to-premium upgrade structure.
- AMarketplace (platform) modelCorrect
- BSubscription model
- CFreemium model
- DDirect-to-consumer manufacturing model
Explanation
The firm brings two sides, tutors and students, together and earns a commission per transaction while owning neither the supply nor the assets. That is the marketplace or platform model. A subscription model charges recurring fees, and freemium offers a free basic tier with paid upgrades; neither is described here.
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