 A business model describes the rationale of how an organization creates, delivers and captures value in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices and operational processes and policies including culture. Context, the literature has provided very diverse interpretations and definitions of a business model. The systematic review and analysis of manager responses to a survey defines business models as the design of organizational structures to enact a commercial opportunity. Further extension to this design logic emphasize the use of narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms. Business models are used to describe and classify businesses, especially in an entrepreneurial setting, but they are also used by managers inside companies to explore possibilities for future development. Well-known business model can operate as recipes for creative managers.5 business models are also referred to in some instances within the context of accounting for purposes of public reporting. History, in the 1950s, new business model came from McDonald's restaurants in Tilda. In the 1960s, the innovators were Walmart and hypermarkets. The 1970s saw new business model from FedEx and toys far off. The 1980s from La Buster, Home Depot, Intel, and Dell Computer. The 1990s from Southwest Airlines, Netflix, eBay, Amazon.com, and Starbucks. Today, the type of business model might depend on how technology is used. For example, entrepreneurs on the Internet have also created entirely a new model that depend entirely on existing or emergent technology. Using technology, businesses can reach a large number of customers with minimal costs. In addition, the rise of absorbing and globalization has meant that business model must also account for strategic sourcing, complex supply chains and moves to collaborative, relational contracting structures.