A Contractor sells a service provided primarily by people, such as consulting, construction, education, personal care, package delivery, live entertainment or healthcare. Payment is fee for service, often (but not always) based on the amount of time the service requires. Examples
* Accenture
* Federal Express.
In most cases, Contractors also require [[Physical assets]] (such as tools and workspace), and [[Physical Landlords]] also provide human services (such as cleaning hotel rooms and staffing amusement parts) associated with their physical assets. In cases where substantial (more than 50% in value) amounts of both human and physical assets are used to provide a service, we classify a firm’s business model (as
Contractor or Physical Landlord) on the basis of which kind of asset is “essential” to the nature of the service being provided.

For example, a passenger airline would generally be considered a Physical Landlord—even though it provides significant human services along with its airplanes—because the essence of the service provided is to transport passengers from one place to another by airplane.

Conversely, a package delivery service (like Federal Express) would generally be classified as a Contractor because the essence of the service provided is to have packages picked up and delivered (usually by people) regardless of the physical transportation mode used (bicycle, truck, train, etc.).
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mbi_public
created
Sat, 05 Nov 2011 13:23:43 GMT
creator
dirkjan
modified
Sat, 05 Nov 2011 13:23:43 GMT
modifier
dirkjan
creator
dirkjan