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 Strategy

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 …

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network-effects

Network Effects In A Nutshell

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 …

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negative-network-effects

What Are Negative Network Effects And Why They Matter

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 …

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waterfalling

What Is Waterfalling And Why It Matters For Publishers

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 …

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technology-adoption-curve

What Is A Technology Adoption Curve? The Five Stages Of A Technology Adoption Life Cycle

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 …

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lean-startup-canvas

What Is a Lean Startup Canvas? Lean Startup Canvas In A Nutshell

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 – …

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Groupon 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 company measures its financial success in gross billings and revenues growth. Groupon generated over $2.8 billion in 2017, by selling its goods and services directly via its websites and mobile app, and indirectly via third-party affiliate sites, who get a commission for each sale.

How Does Groupon Make Money? Groupon Business Model In A Nutshell

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 …

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razor-blade-business-model

What Is the Razor and Blade Business Model? Apple’s Reversed Razor and Blade Strategy

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 …

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alibaba-business-model

Quick Snapshot of Alibaba Business Model

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 …

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tiffany-business-model

How Does Tiffany Make Money? A Quick Glance At Tiffany Business Model

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 …

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nestle-business-model

Nestlé Business Model Analysis

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 …

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niche-marketing

What Is Niche Marketing And Why You Need A Niche Marketing Strategy

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 …

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digital-transformation

Digital Transformation: Definition, Mindset, And Principles

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 …

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ramen-profitability

What Is Ramen Profitability And Why It Matters

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 …

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