Types of business model Generally, the business models of service companies are more complex than those of manufacturers and sellers. The oldest and most basic model is the shopkeeper. This model is set up shop at the site where potential customers should be supply and deploy a product or service. Over the years the business models have become much more sophisticated. The model of the bait and hook (also referred to as razor blades and the product or lead) was introduced in the early twentieth century. This involves offering a basic product at a very low price, often at a loss (the bait) and then to charge excessive prices for refills or associated products or services. Some examples include razor (bait) and blades (hook), printers (bait) and ink cartridges (hook) and cameras (bait) and prints (hook).An interesting variant of this model is a software developer that provides text reader free but charges several hundred dollars for its word processor. In the 50s, new business models came from the hand of McDonald’s and Toyota. In the 60s, innovators were Wal-Mart and Hypermarkets. In the 70’s saw new business models made by Federal Express and Toys Us, in the 80 from Blockbuster, Home Depot, Intel, and Dell Computer in the 90s by Southwest Airlines, eBay, Amazon.com and Starbucks. Each of these innovations in business models can give a company a competitive advantage. But times are changing and companies must continuously rethink their design business models changing the rate at which the value changes from one industry to another. Today, the success or failure of a company depends largely on how it adapts its business design with the priorities of its customers.