NVIDIA is a GPU design company, which develops and sells enterprise chips for industries spacing from gaming, data centers, professional visualizations, and autonomous driving. NVIDIA serves major large corporations as enterprise customers, and it uses a platform strategy where it combines its hardware with software tools to enhance its GPUs’ capabilities.
Apple has a business model that is divided into products and services. Apple generated over $383 billion in revenues in 2023, of which over $200 billion came from iPhone sales, $29.36 billion came from Mac sales, $39.84 billion came from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and accessories), $28.3 billion came from iPad sales, and $85.2 billion came from services.
Microsoft has a diversified businessmodel, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). In 2023, Microsoft made almost $212 billion in revenues, of which almost $80 billion came from Server products and cloud services, and almost $49 billion came from Office products and cloud services. Windows generated $21.5 billion, Gaming generated over $15.4 billion, LinkedIn over $15 billion, and search advertising (through Bing) over $12 billion. Enterprise (GitHub) generated $7.7 billion, and devices (PC) generated $5.5 billion.
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 segments.
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 devices, and other services). And $1.53B from its other bets.
Facebook, the main product of Meta is an attention merchant. As such, its algorithms condense the attention of over 2.91 billion monthly active users as of June 2021. Meta generated $117.9 billion in revenues, in 2021, of which $114.9 billion from advertising (97.4% of the total revenues) and over $2.2 billion from Reality Labs (the augmented and virtual reality products arm).
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, Netflix started to develop its content under the Netflix Originals brand, which today represents the most important strategic asset for the company that, in 2023, counted over 260 million paying members worldwide.
Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants where cars are manufactured and the Gigafactory which produces the battery packs and stationary storage systems for its electric vehicles, which are sold via direct channels like the Tesla online store and the Tesla physical stores.
TikTok is a creative Chinese social media platform driven by short-form video content enabling users to interact and generate content at scale. TikTok generated $11 billion in advertising revenues in 2022, thus making it among the most popular attention-based business models or attention merchants. TikTok’s breakthrough is a combination of format (short-form video), content creation at scale (through its CapCut app, which makes it possible for anyone to become video editors and producers), and an AI-based feed, which moves away from the social graph, and into the entertainment graph!
Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface with gamification elements that make it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform’s gross bookings.
Airbnb is a platform business model making money by charging guests a service fee between 5% and 15% of the reservation, while the commission from hosts is generally 3%. For instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees.
Company
Business Model Description
Revenue Streams
Key Highlights
NVIDIA
Develops and sells GPUs for gaming, data centers, visualizations, and autonomous driving. Uses a platform strategy combining hardware with software tools to enhance GPU capabilities.
Sales of GPUs, enterprise chips, and software tools.
Serves large enterprises, focuses on gaming and AI-powered hardware solutions.
Apple
Divided into product and service segments, with major revenue from iPhone, Mac, iPad, wearables, and accessories. Services include App Store, iCloud, and Apple Music.
Product sales ($200B+ from iPhones in 2023) and services revenue ($85.2B in 2023).
High-margin services complement hardware sales.
Microsoft
Diversified across Office, cloud services (Azure), gaming (Xbox), enterprise (GitHub), search (Bing), and devices.
Revenues from Server and cloud services ($80B), Office products ($49B), Windows ($21.5B), Gaming ($15.4B), LinkedIn ($15B), search ads ($12B), and devices ($5.5B) in 2023.
Combines enterprise software dominance with growth in cloud and gaming sectors.
Amazon
Diversified business model with a mix of online retail, third-party marketplace, physical stores, AWS cloud services, subscriptions, and advertising.
Online stores (40%+ of total revenue), AWS, subscriptions (Prime), and advertising.
AWS drives profitability; advertising is a fast-growing segment.
Google (Alphabet)
Primarily advertising-based, with significant contributions from YouTube Ads, Google Search Ads, Google Cloud, and other services like Google Play and hardware.
Advertising ($175B from Search, $31B from YouTube), Cloud services ($33B), and other services ($34.69B).
Dominates digital advertising with high growth in Cloud and YouTube revenue streams.
Facebook (Meta)
Attention-based business model monetizing user engagement through advertising. Augmented reality and virtual reality products are an emerging segment (Reality Labs).
Advertising ($114.9B in 2021) and Reality Labs products ($2.2B).
Focus on building the metaverse as a long-term strategic pivot.
Netflix
Subscription-based streaming model offering plans (basic, standard, premium). Also produces original content under Netflix Originals.
Subscription fees ($33.7B in 2023).
Over 260M paying members globally, with original content as a key competitive edge.
Tesla
Vertically integrated model, manufacturing cars and batteries in-house and selling them directly through online and physical stores.
Sales of electric vehicles, batteries, and stationary storage systems.
Direct-to-consumer sales model with strong vertical integration for cost efficiency.
TikTok
Attention-based social media platform with a short-form video format. Revenue primarily from advertising, leveraging an AI-based feed and tools like CapCut for scalable content creation.
Advertising revenues ($11B in 2022).
Combines short-form video, AI-driven feeds, and scalable content creation for mass appeal.
Uber
Two-sided marketplace connecting drivers and riders through an interactive platform. Generates revenue through fees collected from gross bookings.
Platform fees from ride-sharing and food delivery services.
Gamified user interface and platform network effects drive growth.
Airbnb
Platform business model connecting hosts and guests, charging service fees on bookings.
Service fees (5%-15% for guests, ~3% for hosts).
Scalable marketplace model with low operational overheads and high platform engagement.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
