Internet – Changing The Way
Since the Internet began, the world has got an easy access to all the things, from designers to manufacturers, from distributors to importers, wholesalers and retailers, it’s what allowed billions of products to be developed, shipped, purchased and enjoyed in all corners of the world.
The Internet is the most powerful tool we can think where an individuals can get whenever one need something, and people with something to offer. Learn the latest topics of Internet Marketing.
1. AMAZON OWNS NO STORE
Amazon identifies strong trends about its products. Consider its focus on Artificial Intelligence (AI) like Alexa and machine learning to accelerate business growth.
Amazon develops money through its retail, subscriptions, and web services, among other channels. Primary source of revenue for Amazon is retail, with online and physical stores accounting for the biggest share.
Amazon’s revenue can be summarized into 5 categories:
- Retail sales – Amazon offers consumer products through our online and physical stores.
- Third-party seller services – Amazon offers programs that enable sellers to sell and fulfill their products in their marketplace.
- Subscription services – include fees associated with Amazon Prime memberships and access to content including audiobooks, digital video, e-books, digital music, and other non-AWS subscription services.
- Amazon Web Services (AWS) – sales of computer, storage, database, and other services ,like programming
- Other – Other revenue primarily includes sales of advertising services, which are recognized as ads are delivered based on the number of clicks or impressions
2. UBER OWNS NO VEHICLES
Uber is one the top startup companies in the world. Uber does not provide any cars to drivers. The drivers use their own car that they will drive. The reason people prefer using Uber are:
- Purchase price to buy cars is quite expensive.
- Also maintenance/repair/storage facility.
- Insurance of the vehicle.
- Resale value of the purchased car is not of sufficient value.
Uber runs a network that helps drivers and riders in many ways. They provide drivers to collect ride payments from the rider. They do not pay the drivers out of pocket.
You need to understand Uber is not making any money in fact I think they are making loss currently but that’s how the business model work for almost all e-commerce site.
3. AIRBNB OWNS NO REAL ESTATE
Airbnb is a website for people where one can rent their primary residences as lodgings for travelers. Airbnb is a one of the biggest company today present in almost all the countries. The unique business model of Airbnb has proved to be very strong as people prefer Airbnb over hotels for affordable and comfortable stay in new locations. People get to experience local culture while paying significantly less. Airbnb has started a technological innovation to build a platform that connects individuals across the world. In today’s world, it is the largest chain of properties, without owning a single property. Airbnb’s revenue keeps growing as the bookings keep increasing every day though it charges a minimal service fee.
It does not have a normal business model like other traditional hotel chains such as Marriott, Hilton etc. The traditional hotel businesses need to invest millions in building and maintaining their properties. Airbnb’s key sources are people, this enables it to grow incredibly fast at zero marginal cost. Individuals list their available space on airbnb platform and earn money from their given space/properties.
4. NETFIX NOT A CHANNEL
Netflix is world’s largest leading television network with over 100 million members in over 190 countries enjoying TV shows and movies per day. The company’s target market includes males and female between the ages of 17-60.
There are two angles to it. One is the revenue that Netflix generates and two is the cost it saves in the long run.
Since Netflix does not own a lot of its content there is licensing fees that needs to be paid on a periodic basis. With original content you don’t have that hassle.
The company offers 3 different subscription plans for users based on the streaming quality of the content provided. The plans are –
- Basic – content can be streamed in Standard Definition.
- Standard – content can be streamed in High Definition.
- Premium – content can be streamed in Ultra High Definition
The prices of these given plans vary in different countries.
5. ZOMATO OWNS NO RESTAURENTS
Zomato is one of the biggest online food ordering platforms in India and in other 22 countries all around the world.
Zomato began life as FoodieBay, which was an online restaurant directory. Besides discovery and food delivery, it has entered segments such as live events, restaurant reservation, loyalty programs.
Zomato has started up many more channels for revenue through its business model diversification.
- Restaurant Listings / Advertising
- Food Delivery
- Subscription Programmes
- Live Events
- Zomato Kitchens
The partnering restaurants are charged for each order they fulfill through these websites.
One upcoming model of revenue generation is by providing premium subscription to customers. A fixed amount for a period of time is paid wherein the customers are provided with privilege services like free delivery, buy 1 get 1 free offers. Zomato provides ‘Zomato Gold’, while Swiggy has a free delivery subscription ‘Super’ in this category.
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