The Leading Source of Insights On Business Model Strategy & Tech Business Models
The Leading Source of Insights On Business Model Strategy & Tech Business Models
The business model is a way to capture value in the long-term for any organization. The business model it is also about monetization, but that is also about the other parties involved. A successful business model has to unlock value for the stakeholders (users, customers, suppliers, and employees) and not just for shareholders.
Amazon’s business strategy revolves around e-commerce dominance, cloud computing services, and diversification into various industries. They prioritize customer experience through personalized recommendations, customer reviews, and services like Amazon Prime. Additionally, they have expanded into digital content, smart home devices, and brick-and-mortar retail. Amazon’s continuous innovation and focus on customer satisfaction have contributed to its success …
Virality is about the marketing side of how a platform can grow its audience in a scalable way. Network effects are about how the underlying platform gets fundamentally better the more users join in. Aspect Virality Network Effects Definition A marketing strategy to increase exposure and user acquisition through sharing and word-of-mouth, often externally. A …
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward. Imagine the case of a platform like LinkedIn. For each additional user, joining, which also enriches the online resume, makes the platform more valuable …
In a negative network effect as the network grows in usage or scale, the value of the platform might shrink. In platform business models network effects help the platform become more valuable for the next user joining. Negative network effects (congestion or pollution) reduce the value of the platform for the next user joining. Network congestion As …
What Are Negative Network Effects And Why They Matter Read More »
Waterfalling is an ad inventory mechanism that publishers use to unload the remaining inventory they could not sell at a premium price. Thus, with waterfalling, publishers sell the remaining inventory at subsequent lower price tiers to maximize profitability. In short, this is a technique that publishers use to maximize their profits on an otherwise unsold …
What Is Waterfalling And Why It Matters For Publishers Read More »
Don Valentine from Sequoia Capital might have coined the term. While Marc Andreessen from A16z popularised it as “being in a good market with a product that can satisfy that market.” According to Andreessen, that is when a product or service has its place in the market, thus enabling traction for the company offering that …
What Is Product-Market Fit? Product-Market Fit In A Nutshell Read More »
In his book, Crossing the Chasm, Geoffrey A. Moore shows a model that dissects and represents the stages of adoption of high-tech products. The model goes through five stages based on the psychographic features of customers at each stage: innovators, early adopters, early majority, late majority, and laggards. Stages Description Examples Strategies Challenges Innovators …
What Is A Technology Adoption Curve? The Five Stages Of A Technology Adoption Life Cycle Read More »
As pointed out by Eric Ries, a minimum viable product is that version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology. Company MVP Concept Validation …
What Is the Minimum Viable Product And Why It Matters Read More »
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders. Principle Description Example Company Love the …
What Is Continuous Innovation And Why It Matters Read More »
The lean startup canvas is an adaptation by Ash Maurya of the business model canvas by Alexander Osterwalder, which adds a layer that focuses on problems, solutions, key metrics, unfair advantage based, and a unique value proposition. Thus, starting from mastering the problem rather than the solution. Component Questions to Ask Description Applications Problem – …
What Is a Lean Startup Canvas? Lean Startup Canvas In A Nutshell Read More »
The purpose of the balance sheet is to report how the resources to run the operations of the business were acquired. The Balance Sheet helps to assess the financial risk of a business and the simplest way to describe it is given by the accounting equation (assets = liability + equity). Balance Sheet Builder Why …
Groupon business model is a two-sided marketplace where local consumers meet deals from local merchants. The company makes money by selling local and travel services and goods. Its value proposition based on attracting local customers to local merchants is quite compelling. Local consumers instead get savings and discounts that they would not get elsewhere. The …
How Does Groupon Make Money? Groupon Business Model In A Nutshell Read More »
The razor and blade business model is a strategy that relies on selling what is supposed to be the primary product at a low price or given away for free; while complementary goods get sold at high margins. For instance, Gillette’s razor would cost a few bucks. Instead, a set of blades will be 3-4 …
What Is the Razor and Blade Business Model? Apple’s Reversed Razor and Blade Strategy Read More »
Alibaba is an e-commerce platform that generated over $134 billion in revenues in 2022, and over $7.4 billion in net income. Alibaba has six main segments: core commerce (revenues generated in China), international commerce, local consumer services, cloud services, Cainiao (logistics), digital media, and other innovation initiatives. Introduction to Alibaba business model Alibaba is China’s biggest …
With over $4.4 billion in net sales for 2018, Tiffany has brand awareness and a perceived sense of luxury and quality thanks also to strategic marketing, PR, and media relations activities. Many of these activities are focused around the iconic Flagship Store located in 727 of Fifth Avenue. Tiffany business model Tiffany’s business model is …
How Does Tiffany Make Money? A Quick Glance At Tiffany Business Model Read More »
Nestlé is a powerhouse of consumer brands spanning baby foods, bottled waters, powdered drinks, cereals, coffee, drinks, pet care, and more. The company made over 94 billion Swiss Francs in 2022 (over $100 billion), with high margins on its powdered and liquid beverages (coffee, cocoa, and malt beverages and tea categories). While many people might …
Niche marketing is a strategy whose premise is to target a subset of a market that can be of various sizes. Where a marketing strategy focused on the whole potential market used to be effective when mass advertising was possible, a niche marketing strategy can help position your brand more efficiently nowadays. Why Niche marketing …
What Is Niche Marketing And Why You Need A Niche Marketing Strategy Read More »
Digital transformation enables existing businesses to leverage digital technologies for business model innovation. The process of digital transformation is not just about new distribution channels. It starts by better serving key customers, and it completes by developing a new business mindset required to succeed in the digital era. Busting some myths around digital distribution As …
Digital Transformation: Definition, Mindset, And Principles Read More »
Showrooming is the process in which a shopper goes in a physical store to browse for products. Webrooming is the reverse process of showrooming. In the showrooming process, instead, consumers browse for products in the physical store, to finalize the purchase on an online platform at a lower price. How are showrooming and webrooming connected …
Serial entrepreneur and venture capitalist Paul Graham popularized the term “Ramen Profitability.” As he pointed out, “Ramen profitable means, a startup makes just enough to pay the founders’ living expenses.” Let’s dive into this concept to see what it means and why it matters. What is Ramen Profitability? Entrepreneur and venture capitalist Paul Graham popularized …