Web Business Model part 2

E-Business Development, Web 2.0 Design
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continued from Web Business Model part 1

Designed to meet the demand
Google is a good example. In addition to operating the world’s largest search engine, in recent years has also committed to providing e-mail, video sharing, word processing, maps, translation and community services and other products, and most of the services are free of charge. After the success of the Internet service, Google began to expand to Chrome browser, Android mobile platform and Google Apps and many other different areas.

With the search engine to collect the world users information, Google understands what users want, and it is generous to provide a variety of information services for them and make users become fans and trust it, and that is a google’s intangible asset. Google never force users to make payment while enjoy the convenience of its services, unless users are willing to use its keyword ads. Or they need bigger Gmail space which is free for 7 Gb space, and can purchase bigger space for only 5 US dollars.

Is to be different
For a good business model, it is not necessarily to use a big market that already exists, but should use logical method to predict its potential of growth, Google’s keyword ads and iPhone applications store are the examples. Therefore an attractive business model, instead to improve original services, but to make completely different ones (Different, not better). When you really make something different, it will attract a number of potential loyal supporters.

Amazon, for a example, as a online bookstores at beginning, then upgrade to a comprehensive shopping mall, and open up business platform to become IT service provider network. It also did not forget its book sell business, and recently been actively expand business to writer brokers and hardware reader to open a new era of digital reading.

Whether Google and Amazon these existing large Internet companies, or Zynga, Twitter, and Wolfram Alpha this emerging forces, the most prominent feature of these enterprises is they are not only information technology innovation, but also their business model are more mature than their predecessors in Internet bubble period, and they are also good at using the power from the users.

Use the power of the masses
For example Facebook invites volunteers to help with language translation. Game development company Zynga, develop a “take three minutes to get started, five minutes to play” online games, Which is different from traditional online game that require users to spend long time to get start. And for only two years, Zynga earned 100 million U.S. dollars.

Some successful business model may be difficult to imitate, but to analyse these companies to how to find right model and consider and implement the market demand, will help to find competitive advantage.

Edited By Henry Lu

Web Business Model part 1

E-Business Development, Web 2.0 Design
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It’s all about long term, World’s largest e-commerce company Amazon founder Jeff Bezos says. Ten years ago, when the stock crash of U.S. NASDAQ, the Internet companies have experienced tremendous turbulence baptism, “God opened the new web economy is a joke?” Many people doubt it, but there are many people persist in the conviction that the great potential of online business is coming, Bezos is one, and he is right!

Amazon, overcome the internet bubble slump, had 3.9 billion US dollars revenues in 2002, and 24 billion US dollars revenues in 2009 which grew more than 5 times within 6 years. “People who are always trying new direction will be too concerned about failure. But if the failure can bring success in the future, that the cost of failure are very slim,” Bezos said.

During IT stock market crash, the management guru Peter Drucker commented: “A new type of economy won’t shape without decades ” Decade, the enthusiasm of entrepreneurs in fact did not subside, compare them in ten years ago, they are more pragmatic and use the creativity as a career to manage, but is not like Drucker’s comments, “Many online entrepreneurs are not creating a business, but in playing a stock market gamble.”

During the hindsight, many people think that the Internet bubble is due to the ignorance and crazy, But in fact, the distance of success from these companies are not far, even the previous Internet businesses founder during that year has changed the face of business. Unfortunately some of the company’s business model is not sufficiently comprehensive, or just pure bad luck.

Study after the failure
Many later proved feasibility of product strategy at that time failed due to the environmental and technological immature factors. Services such as PointCast launched in 1996, won many praise with its free services and rich content, however the rapid accumulation of the number of users, the computer processor speed was too slow, excessive bandwidth consumption, and without much commercial interests to find. Which made the PointCast disappeared in the internet sea.

If PointCast or any similar service launched today which has convenient mobile internet and accurate geo-location system, it will be great opportunity to get business from many manufacturer, and then open up a wide internet market potential.

This is a learning, growing, and dynamic society which doesn’t look backward, but should be in line to the successful model. Now no one doubts about web economy, and more and more people keep finding new ways to make money from it. Have a good business idea is not surprising, because lots of people have the same idea, even people move more quickly to make idea come true! Hence we create a viable business model, and it is a ticket to success.

Business model is important not only because it involves a source of profit, but also for company need to consider the marketing, business, research and development, customer service and management factors into account, and put himself to meet the needs of customers and design the most business value chain .

Web business model Part 2

Edited By Henry Lu

Amazon may terminate its Alexa search engine service early next year

E-Business News
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The well known USA online shopping website Amazon may stop its Alexa search engine on next year January. Beside, the service has stop to accept the new user application, but the current users can still use the service till 26-January next year.

Many people wonder about why Amazon has to stop its Alexa search engine? According to the Amazon official, it is because the use rate of search engine is too low, and most US internet users use Google, Yahoo and Live search from Microsoft as their primary search engine look for products and information.


Edited By Henry Lu

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