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.

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

12 minutes of reading

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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How Does Mozilla Make Money? Mozilla Business Model Analysis

16 minutes of reading

Most of Mozilla Corporation’s revenues come from royalties earned through Firefox web browser search partnerships and distribution deals. Back in 2008 Mozilla Firefox controlled over 26% of the browser market. Today, due to the market dominance of Google Chrome and Safari, Mozilla has less than 5% in market share. In 2021, Mozilla Corporation generated $441

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

7 minutes of reading

Founded in 1968 by Gordon Moore, which would go on to formulate one of the most reliable laws in technology, Intel has been able to survive and thrive through several waves of technology. Intel is transitioning from becoming a PC-centric company to becoming a data-centric company.  Business Model Element Analysis Implications Examples Value Proposition Intel’s value

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IBM-business-model

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

13 minutes of reading

IBM started in 1911 as the Computing-Tabulating-Recording Company (CTR), called the International Business Machines by 1924. IBM primarily makes money from three segments: Software, Consulting, and Infrastructure. Elements Analysis Implications Examples IT Solutions Provider IBM operates as a global IT solutions provider, offering a wide range of products and services, including hardware, software, cloud computing,

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

19 minutes of reading

Telegram is a messaging app emphasizing privacy and encryption, launched in 2013. It doesn’t make money yet, while it raised over $1.7 billion in Initial Coin Offerings throughout 2018, halted by the SEC in 2019. Telegram wants to keep the app 100% free while trying to sustain its growth. Telegram founding story Brothers Nikolai and

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How Does WhatsApp Make Money? Why WhatsApp Will Become A Super App

22 minutes of reading

Founded in 2009 by Brian Acton and Jan Koum WhatsApp is a messaging app acquired by Facebook in 2014 for $19B. In 2018 WhatsApp rolled out customer interaction services. WhatsApp might be transitioning toward a set of features from video chats to social commerce that might transform WhatsApp into a Super App. WhatsApp origin story

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

16 minutes of reading

YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it reported more than $31B in revenues by 2023. YouTube also makes money with its paid memberships and premium content. YouTube origin story Going back and looking

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

14 minutes of reading

Shopify is an e-commerce platform that enabled over 2 million merchants by 2021 to commercialize their products. While Shopify works with a subscription-based business model, it makes most of its money via merchant services, which are additional services provided to merchants. In 2023, the company generated over $7 billion in revenue, of which over $1.8

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

34 minutes of reading

PayPal makes money primarily by processing customer transactions on the Payments Platform and other value-added services. Thus, the revenue streams are divided into transaction revenues based on the volume of activity or total payments volume—and value-added services, such as interest and fees earned on loans and interest receivable. In 2023, PayPal generated nearly $30 billion

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

20 minutes of reading

Instagram makes money via visual advertising. Acquired by Facebook for a billion-dollar in 2012, today, Instagram is integrated into the overall Facebook (now rebranded as Meta) business strategy. In 2018, Instagram founders Kevin Systrom and Mike Krieger left the company as Facebook pushed toward tighter integration of the two platforms. In 2022, Instagram is the

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How Does Spotify Make Money? Spotify Freemium Business Model Analysis

22 minutes of reading

Spotify is a two-sided marketplace, running a free ad-supported service and a paid membership. Founded in 2008 with the belief that music should be universally accessible, it generated €13.25 billion in 2023. Of these revenues, 87.3%, or €11.56 billion, came from premium memberships, while over 12.6%, or €1.68 billion, came from ad-supported members. By 2023,

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How Does Uber Make Money? Uber Business Model Analysis

29 minutes of reading

Uber is a multi-sided marketplace, a platform business model that connects drivers and riders. It has an interface with gamification elements that make it easy for two sides to connect and transact. Uber has three main segments: mobility, freight (both are two-sided marketplaces), and delivery (a three-sided platform). Uber makes money by collecting fees from

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

19 minutes of reading

eBay’s core business is a platform business model that makes money from transaction fees through its marketplaces. In short, eBay primarily makes money by charging fees on successfully closed transactions. For instance, in 2022, on a $73.9 billion worth of gross merchandise value sold on eBay, the company generated $9.79 billion in revenues at a

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

16 minutes of reading

Slack follows a freemium model, offering a free version, and users can convert into paying customers if they want more usage or advanced functionalities. Slack combines the free model with a direct sales force to acquire enterprise customers with yearly recurring revenue of over 100K. Those customers were 575 in 2019, and they accounted for

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etsy-business-model

How Does Etsy Work And Make Money? Etsy Business Model In A Nutshell

25 minutes of reading

Etsy is a two-sided marketplace for unique and creative goods. As a marketplace, it makes money via transaction fees on the items sold on the platform. Etsy’s key partner comprises sellers providing unique listings and a wide organic reach across several marketing channels. Etsy generated over $2.3 billion in revenues in 2021, it counts 88.3

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