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.
Google is an attention merchant that – in 2023 – generated over $237.85 billion (over 77% of revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $31.5 billion segment), and Google Cloud ($33 billion). Google Revenue Breakdown 2023 Google Search & other $175B Google Network […]
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Google is an attention merchant that – in 2023 – generated $237.85 billion (over 77% of its total revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $31.5 billion segment), and Google Cloud (over $33 billion). What’s the Google (search engine) key monetization strategy? A
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Google (now Alphabet) primarily makes money through advertising. The Google search engine, while free, is monetized with paid advertising. In 2023, Alphabet generated over $175B from Google search, $31.51B billion from the Network members (Adsense and AdMob), $31.31B billion from YouTube Ads, $33B from Google Cloud, and $34.69B billion from other sources (Google Play, Hardware
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The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic – on its pages – for monetization. Over the years, Google has been able to reduce its traffic acquisition costs and, in any case, to keep it stable. In 2023 Google spent 21.39% ($50.9 billion) of its
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Of Google’s (Alphabet) over $307.39 billion in revenue for 2023, Google also generated for the first time, well over 1.5 billion dollars in revenue from its bets, which Google considers potential moonshots (companies that might open up new industries). Google’s bets also generated a loss for the company of over $4 billion in the same
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Elements Apple Google Similarities Differences Competitive Advantage Customer Segments Consumer electronics, software, services Search, advertising, cloud, software, hardware Both target consumers and businesses, offering a range of products and services. Apple primarily focuses on consumer electronics, software, and services. Google offers a wide array of products and services, with a strong emphasis on online advertising,
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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
Amazon’s fundamental principles that drove and drive the company are: Customer Obsession Ownership Invent and Simplify Are Right, A Lot Learn and Be Curious Hire and Develop the Best Insist on the Highest Standards Think Big Bias for Action Frugality Earn Trust Dive Deep Have Backbone; Disagree and Commit Deliver Results Before diving into them,
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The cash conversion cycle (CCC) is a metric that shows how long it takes for an organization to convert its resources into cash. In short, this metric shows how many days it takes to sell an item, get paid, and pay suppliers. When the CCC is negative, it means a company is generating short-term liquidity.
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A company like Amazon has multiple value propositions, as it serves several target customers in different markets. With its mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online and endeavors to offer its customers the lowest possible prices,” Amazon’s value propositions range from “Easy
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Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
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Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn’t recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023. Indeed, in 2014, Amazon reported a
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Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources. The Amazon’s Empire Amazon is the largest online store in the world.
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Amazon has a diversified business model. In 2023, Amazon generated nearly $575 billion in revenues while it posted a net profit of over $30 billion. Online stores contributed over 40% of Amazon revenues. Third-party Seller Services and Physical Stores generated the remaining. Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing
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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
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Netflix is a profitable company, with over $5.4 billion in net profits in 2023, an increase compared to nearly $4.5 billion in 2022. Revenue Profitability 2018-2023 What drove Netflix’s profitability? In 2021 revenues drove profitability. However, as of 2022, for the first time in years, Netflix’s subscriber base has slowed down, thus steering the company
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Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. Leveraging on a streaming platform, Netflix generated over $33.7 billion in 2023, with an operating income of over $6.95 billion and a net income of over $5.4 billion. Starting in 2013,
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WeWork vision is that of providing a better day at work for less. And its mission is to elevate the world’s consciousness. Aspect Description Analysis Vision “Providing a better day at work for less.” WeWork’s vision centers on delivering value to its customers by improving their work experience while reducing costs. This vision emphasizes a
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The general concept of Bootstrapping connects to “a self-starting process that is supposed to proceed without external input.” In business, Bootstrapping means financing the growth of the company from the available cash flows produced by a viable business model. Bootstrapping requires the mastery of the key customers driving growth. Component Description Definition Bootstrapping, in
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Failure is information, on what did not work in that moment. Therefore, business failure might be valuable information for entrepreneurs, as they can use what didn’t work before to build successful businesses and industries at a later stage. Business Model Explorers Byond failure as pain Failure is painful. That is something unbearable. We want to
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