Thank you Safiya! Although there is very limited information on their franchise model, they have been very effective in using the franchise model to partner up with partners in different countries and leveraging local connections and knowledge to tweak their business model to fit with the local market. This has allowed them to become a global brand.
Having been a customer of Emirates on several flights, I completely agree that a dedicated terminal and a new set of fleets were extremely important parts of Emirates’ operating model that enhanced my experience as a customer. In addition, I was also very impressed by the high level of customer service that I received during my flights. From the ground staff to the air hostess, not only did they complete their required tasks efficiently, they also went beyond to ensure I had the best possible experience. I believe that it is this customer-focus service part of their operating model that distinguishes Emirates from other airlines and caters to fulfill a complete customer journey from start to finish (even in economy class!). Emirates’ operating model, for me, clearly supports its business model of providing a ‘premium best’ to the customers.
Bayern’s operating model has definitely led to its success financially. Building on your point of scouting and developing talents internally, this can help a football club save significant costs. In the English Premier League, according to the Guardian, only approximately 25% of the clubs are profitable while the rest of the clubs are making losses. Revenue streams for English clubs have been growing constantly, however one major problem is rising players’ wages and transfer fees, which has significantly hampered football clubs’ profitability in recent years. By building up players from an early age, this can help a football club reduce costs on transfers but at the same time help build the players’ loyalty to the club from an early age.
I completely agree with the analysis above. One additional point that I saw from a company that uses the same business and operating models as ClassPass in Southeast Asia was the differences in interests from established fitness studios and new fitness studios. Existing studios that have loyal customers were unwilling to join because they did not want to dilute their value to their loyal customers and were also afraid of losing their existing customers to other fitness studios. On the other hand, new fitness studios would jump at the opportunity; however, many would end up leaving after establishing their own base of loyal customers.
For me, the value proposition to customers from ClassPass is clear, however with their existing operating model, their business model is unsustainable.