New Business Models & Strategies for Internet Economy strategic management
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Table of Contents
Brokerage Model
Advertising Model
Infomediary
Merchant Model
Manufacture Model
Freemium Model
Community Model
Subcription Model
Utility Model
Social Business Model
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3. Brokerage Model
Brokers are market-makers: they bring buyers and sellers together and facilitate
transactions. Brokers play a frequent role in business-to-business (B2B), business-
to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker
charges a fee or commission for each transaction it enables. The formula for fees
can vary. Brokerage models include:
Auction Broker -- conducts auctions for sellers (individuals or merchants). Broker
charges the seller a listing fee and commission scaled with the value of the
transaction. Auctions vary widely in terms of the offering and bidding rules. eBay
Transaction Broker -- provides a third-party payment mechanism for buyers and
sellers to settle a transaction.PayPal
EBAY
Founded on:-15-september-1995
Revenue :- 17,902,000
Reason to success: - eBay is perhaps best described as an Auction House. As critics
have pointed out, the key to eBay's continued growth and success lies in its rather
simple business model. As Rappa points out (2010), as businesses seek fresh,
untapped markets on the Web, so many traditional business models have also
found their way online
Subscriber:-155 million
PAYPAL
Founded:- December 1998
Revenue:-$7.9 billion
Subscriber:-10 million
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4. Advertising Model
The web advertising model is an extension of the traditional media broadcast
model. The broadcaster, in this case, a web site, provides content (usually, but not
necessarily, for free) and services (like email, IM, blogs) mixed with advertising
messages in the form of banner ads. The banner ads may be the major or sole
source of revenue for the broadcaster. The broadcaster may be a content creator or
a distributor of content created elsewhere. The advertising model works best when
the volume of viewer traffic is large or highly specialized.
GOOGLE ADWORDS
Google launched adword in 2000
Revenue:- 43.7 billion
Total 1 billion users
Google adword success is because of it allows the user to bit for advertising in a
particular website and google adword provides cheap rates of ad cost . Google
adword is allowing to maintain a cleariity for bidding.
YAHOO
YAHOO was launched in2-march-1995
Revenue:-4,618,133
281 million total users
Yahoo Search Marketing is a keyword-based "Pay per click" or "Sponsored search"
Internet advertising service provided by Yahoo
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5. Infomediary
Data about consumers and their consumption habits are valuable, especially when
that information is carefully analyzed and used to target marketing campaigns.
Independently collected data about producers and their products are useful to
consumers when considering a purchase. Some firms function as infomediaries
(information intermediaries) assisting buyers and/or sellers understand a given
market.
NIELSEN
Situated in The Nielsen TV Ratings have been produced in the USA since the
1950s
Total revenue of Nielsen is $500 milion.
115.6 million user
Provides effective information and reaches through media .
NETRATING
Provides effective information and reaches through media .
Total revenue of netrating is $ 250 million
98 millions user wordwide.
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6. Merchant Model
Wholesalers and retailers of goods and services. Sales may be made based on list
prices or through auction.
AMAZON
Amazon is started in 5-july-1995.
Total revenue of Amazon is $88,988,000
Amazon is having a 170 million users.
With sales of BioMax's anti-inflammatory cream going up and up, having
Amazon fulfill orders helps keep the bottom line pain-free
APPLE
Apple I tune was started in 9 july-2001
Total revenue of apple i-tune is:-$6.4 billion
Apple I tune is having 75 billion user
iTunes is known to adopt the Bit Vendor model that is engaged in the sale of
digital goods and services as well as distribution over the web. The merchant
model or bit vendor model is actually a rapidly growing business model as the
performance of the intranet continues to improve.
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7. Manufacture Model
The manufacturer or "direct model", it is predicated on the power of the web to
allow a manufacturer (i.e., a company that creates a product or service) to reach
buyers directly and thereby compress the distribution channel. The manufacturer
model can be based on efficiency, improved customer service, and a better
understanding of customer preferences
DELL
Dell was started in 1-february-1984
Dell total revenue was $ 64 billion
Dell total subscriber is 175 million
Dell Perot Systems has established, documented, and implemented an ISO
90001:2000-certified quality management system (QMS) that focuses on meeting
customer requirements and enabling employees to do their jobs right the first time
SONY VAIO
Sony vaio is started in 27-january-1994
Sony 64 trillion yen
Sony total subscriber is 7.9 million
Sony is also a premium brand, but it does offer something for the more budget-
conscious customer. Head over to the UK Vaio store, and you can pick up a Vaio
E series for around £399 inc VAT. For that money, however, you get only an
Intel Pentium chip with integrated graphics - not great for a pre-Ivy Bridge PC.
It'll get you online and allow you to perform basic office tasks. It's a perfectly fine
laptop, but it's clearly in no way competing with even the 'basic' MacBook Air,
which zips along with a dual-core Core i5 chip and a 64GB SSD.
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8. Freemium Model
Freemium model
Freemium is a pricing strategy by which a product or service (typically a digital
offering or application such as software, media, games or web services) is
provided free of charge, but money (premium) is charged for proprietary features,
functionality, or virtual goods.
ZYNGA
Zynga is a provider of social video game services founded in July 2007 and
headquartered in San Francisco, California, United States. The company develops
social games that work stand-alone on mobile phone platforms such
as Apple iOS, Android, Windows Phone and on the Internet through its website,
Zynga.com, and social networking websites such as Facebook, Google+,
and Tencent QQ. Zynga states its mission as "connecting the world through
games." The company was named in honor of Zinga, CEO Mark Pincus's
deceased American bulldog.
Founded July 2002
CRIPPLEWARE
Crippleware has been defined in realms of both software and hardware. In
software, crippleware means that "vital features of the program such as printing
or the ability to save files are disabled until the user purchases a registration key".
While crippleware allows consumers to see the software before they buy, they are
unable to test its complete functionality because of the disabled functions.
Hardware crippleware is "a hardware device that has not been designed to its full
capability"
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9. Community Model
Last, but not least, the community model. This model is used for sites which build
a community of users interacting with each other. While the basic features of the
site would be free, companies using this model could charge a small subscription
fee for certain premium features which make the site even easier to use. In many
ways, this model can be very similar to the subscription model but varies slightly
as users would have invested a high level of time and emotion into the site and
will therefore find it easier to invest money in the site.
YAHOO GEO CITIES
GeoCities is an established in 1994, it offered 15 MB of disk space, a
Webbaukasten for inexperienced users and a file manager for the creation and
management of pages and to upload images, and an HTML editor for more
experienced users. This itself could create websites in more sophisticated
version. HTML pages could also create offline and had to be only copied into the
HTML window afterwards. Alternatively, it was also possible that pages
via FTP upload to the server. Other features also scored a callable for
administrator access counter with profile by site visitors
Owner-Yahoo
WIKIPEDIA
Wikipedia is a free-access, free-content Internet encyclopedia, supported and hosted
by the non-profit Wikimedia Foundation. Those who can access the site can edit
most of its articles. Wikipedia is ranked among the ten most popular websites and
constitutes the Internet's largest and most popular general reference work.
Jimmy Wales and Larry Sanger launched Wikipedia on January 15, 2001.
Users-125367 active and 27011891 Registered
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10. Subscription Model
With this type of model (which has been used extensively in the offline world
through magazines and newspapers), online companies charge a daily, weekly or
monthly rate for being able to log into site and using private applications or
viewing private information. This model is quickly gaining popularity as
companies use it to deliver web content and applications with a subscription
format rather than charging a one-time fee. .
THE ECONOMIC TIME
The Economic Times is an English-language, Indian daily newspaper published
by the Bennett, Coleman & Co. Ltd. first published in 1961. It is the world's
second-most widely read English-language business newspaper, after the Wall
Street Journal, with a readership of over 800,000. The Economic Times is
published simultaneously from 12 cities—Mumbai, Bangalore, Delhi, Chennai,
Kolkata, Lucknow, Hyderabad, Jaipur, Ahmedabad, Nagpur, Chandigarh, and
Pune.
Founded-1961
SCRIBD
Scribd is a digital library and e-book, audiobook and comic book subscription
service that includes one million titles. In addition, Scribd hosts 60 million
documents on its open publishing platform , Scribd added audiobooks to their
subscription service in November 2014 and comic books in February 2015. Scribd
has 80 million users, and has been referred to as “the Netflix for books.”
Founded– March 2007
Users 80 million
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11. Utility Model
Utility Model
The utility or "on-demand" model is based on metering usage, or a "pay as you
go" approach. Unlike subscriber services, metered services are based on actual
usage rates. Traditionally, metering has been used for essential services (e.g.,
electricity water, long-distance telephone services). Internet service providers
(ISPs) in some parts of the world operate as utilities, charging customers for
connection minutes, as opposed to the subscriber model common in the U.S.
Metered Usage -- measures and bills users based on actual usage of a service.
Metered Subscriptions -- allows subscribers to purchase access to content in
metered portions
SLASHDOT
Slashdot is a news website that originally billed itself as "News for Nerds. Stuff
that Matters". It features news stories on science and technology that are
submitted and evaluated by its users. Each story has a comments section attached
to it.
BARNES & NOBLE
Barnes & Noble, Inc., is a Fortune 500 company, the largest retail bookseller in
the United States, and a leading retailer of content, digital media and educational
products in the country. The company operates 647 retail stores (as of August 1,
2015) in all 50 U.S. states.
Founded New York
Revenue $ 6069.09 million
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12. Social Business Model
Organizations that have adopted the social business model utilize social
media tools and social networking behavioral standards across functional areas for
communicating and engaging with external audiences, including customers,
prospective customers, prospective employees, suppliers, and partners.
FACEBOOK
Facebook is an online social networking service headquartered in Menlo Park,
California. Its website was launched on February 4, 2004, by Mark
Zuckerberg with his Harvard College roommates and fellow students Eduardo
Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes , After
registering to use the site, users can create a user profile, add other users
as "friends", exchange messages, post status updates and photos, share videos and
receive notifications when others update their profiles.
Founded Feb 4 2004
Revenue $12.466 billion
TWITTER
Twitter is an online social networking service that enables users to send and read
short 140-character messages called "tweets".
Registered users can read and post tweets, but unregistered users can only read
them. Users access Twitter through the website interface, SMS, or mobile
device app. Twitter Inc. is based in San Francisco and has more than 25 offices
around the world
Founded March 21 2006
Revenue $1.4 billion
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