Abstract:

Through analyzing the classic definition of business model, it pointed out that the nature of the business model is a way of value activities in companies, which describes the basic principles of how companies 　discover, create and realize value. The value creation stream and value realization stream constitute the core-logic of business model. “Free” elements make the core-logic of business model separated. By an economic mathematical model, it proposed the high degree of “free” is not conducive to the sustainable development of companies, and the uniqueness of product is the premise of companies’ adoption of “free” strategies.

Key words: business model, “free&rdquo, business model