10- DIFFERENT

WEB BASED

BUSINESS MODEL

MUSTAHID ALI

MBA-3, ROLL NO: 1334

UNIVERSAL BUSINESS SCHOOL

BY

World Wide Web

"WWW" and "The web" redirect here.

The World Wide Web (abbreviated

as WWW or W3, commonly known

as the web) is a system of

interlinked hypertext documents

accessed via the Internet. With a web

browser, one can view web pages that

may contain text, images, videos, and

other multimedia and navigate between

them via hyperlinks.

Website:

A website, also written as Web site, web site, or simply site, is a set of

related web pages served from a single web domain. A website is hosted on at

least one web server, accessible via a network such as the Internet or a

private local area network through an Internet address known as a Uniform

resource locator. All publicly accessible websites collectively constitute

the World Wide Web.

World Wide Web

The web's logo designed by Robert Cailliau

Invented by Tim Berners-Lee

Company CERN

Availability Worldwide

A webpage is a document, typically written in plain text interspersed with

formatting instructions of Hypertext Markup Language (HTML,XHTML). A

webpage may incorporate elements from other websites with suitable markup

anchors.

Business model

A business model describes the rationale of how an organization creates,

delivers, and captures value, in economic, social, cultural or other contexts. The

process of business model construction is part of business strategy.

A business model is a coherent way to manage and develop an economic

activity. This model describes the rationale of how an organization creates,

delivers, and captures value. It also helps in making money. General definition a

business model is “show me the money”. It is a simple expression of the strategy

of the company on how to make money without going into too many details.

A business model describes what makes a company unique looking from the

value propositions to cost structure.

Web based business model:

The Internet has introduced new ways of doing business and earning a profit,

and savvy entrepreneurs continue to find innovative ways to leverage the

internet for business purposes. A number of distinct online business models

have proven successful when implemented properly, but there is always room

for creativity on the Internet.

Online business models utilize the Internet to market and sell their products and

services to the public. Companies with an online business model usually accept

payment online via credit cards or third-party services, such as PayPal, as well.

Certain products and services are well suited for web-based business models,

and others have proven to be better provided in person.

Internet business models are categorized as business-to-consumer, business-to-

business, and more recently, consumer-to-consumer. Business-to-consumer

and business-to-business models typically sell goods and services or provide

information designed to help visitors make purchase decisions. Consumer-to-

consumer models involve consumer-to-consumer information or product

exchange.

The simplest website business model is based on making sales and profits. A

classic commerce website like Amazon.com or Buy.com sells products, takes

orders, charges credit cards, and ships goods. Software and some information

sites have the advantage of being able to deliver what they sell online, at the

time of the transaction.

These sites normally offer their target customers the benefit of ease of use and

selection. Amazon.com, for example, set the standard for commerce sites by

offering a huge selection and a wealth of additional information on the products

it sells.

Key elements of a business model

10 DIFFERENT WEB-BASED

BUSINESS MODELS

1. Facebook-

Facebook helps Internet users stay connected with their friends, families, and

colleagues. Facebook provides a number of products, free of charge, to its users:

Timeline, News Feed, Photos and Videos, Messages

(Email, Chat, and Text Messaging), Groups, Lists,

Events, Places, Subscribe, Ticker, Notifications, and

Facebook Pages, 100 billion friendships, 250 million

photos uploaded every day and 2.7 billion Likes and

Comments per day.

Its revenue on 2013 was US$7.872 billion. In 2012, Facebook was valued at $104

billion, and by January 2014 its market capitalization had risen to over $134

billion. At the end of January 2014, 1.23 billion users were active on the website

every month, while on December 31, 2013, 945 million of this total was

identified by the company as mobile users. The company celebrated its tenth

anniversary in the week of February 3, 2014. Facebook's annual profit for 2013

was US$1.5 billion.

2.Groupon-

Groupon (a portmanteau derived from

"group coupon") is a deal-of-the-day

website that features discounted gift

certificates usable at local or national

companies. Groupon was launched in

November 2008, and the first market for

Groupon was Chicago, followed soon thereafter by Boston, New York City, and

Toronto. By October 2010 Groupon served more than 150 markets in North

America and 100 markets in Europe, Asia and South America and had 35 million

registered users. In April 2010, the company was valued at $1.35 billion. The

company offers one "Groupon" per day in each of the markets it serves. The

Groupon works as an assurance contract using The Point’s platform: if a certain

number of people sign up for the offer, then the deal becomes available to all;

if the predetermined minimum is not met, no one gets the deal that day. This

reduces risk for retailers, who can treat the coupons as quantity discounts as

well as sales promotion tools.

Groupon makes money by keeping approximately half the money the customer

pays for the coupon. Groupon share of 50% on deals. Their increasing

purchasing frequency and repeat buys lead to their growth.

3.ETSY-

Etsy is an e-commerce website focused on

handmade or vintage items, supplies, as well as

unique factory-manufactured items under Etsy's

new guidelines, released in October 2013. These

items cover a wide range, including art,

photography, clothing, jewelry, food, bath and

beauty products, quilts, knick-knacks, and toys. Many sellers also sell craft

supplies such as beads, wire and jewelry-making tools.

All vintage items must be at least 20 years old. The site follows in the tradition

of open craft fairs, giving sellers personal storefronts where they list their goods

for a fee of US$0.20 per item. As of August 2013, 30 million users are registered

on the website and by the end of 2013; projections of one million sellers and

over US$1 billion in total annual transactions have been announced. ETSY

Created by Robert Kalin, Chris Maguire, Haim Schoppik and Jared Tarbell.

Revenue US$500 million (2011). Buyers spent $4.3 million purchasing 300,000

items for sale on Etsy.

4.Amazon -

Amazon.com is an American international

electronic commerce company with

headquarters in Seattle, Washington, United

States. It is the world's largest online retailer.

Amazon.com started as an online bookstore, but

soon diversified, selling DVDs, VHSs, CDs, video

and MP3 downloads/streaming, software, video

games, electronics, apparel, furniture, food, toys, and jewelry. The company also

produces consumer electronics—notably the Amazon Kindle e-book reader and

the Kindle Fire tablet computer—and is a major provider of cloud computing

services. In the 15 years since it sold its first book, Amazon has become a global

ecommerce colossus, with more than $50 billion in revenue.

Amazon sells blockbusters products but also niche hard-to-find products (online

book stores bring access to increased product variety). Amazon has developed

a customer base of around 30 million people. On January 31, 2013 Amazon

experienced an outage that lasted approximately 49 minutes, leaving its site

inaccessible to some customers. "Search inside the Book" is a feature which

allows customers to search for keywords in the full text of many books in the

catalog. The feature started with 120,000 titles (or 33 million pages of text) on

October 23, 2003.There is currently about 300,000 books in the program.

Amazon has cooperated with around 130 publishers to allow users to perform

these searches.

5.LinkedIn –

LinkedIn is a business-oriented Social networking

service. Founded in December 2002 and launched on

May 5, 2003, it is mainly used for professional

networking. In 2006, LinkedIn increased to 20 million

viewers. As of June 2013, LinkedIn reports more than

259 million acquired users in more than 200 countries

and territories. In June 2011, LinkedIn had 33.9 million unique visitors, up 63

percent from a year earlier and surpassing MySpace. LinkedIn filed for an initial

public offering in January 2011 and traded its first shares on May 19, 2011, under

the NYSE symbol "LNKD". By December 2010, the company was valued at

$1.575 billion in private market. One purpose of the sites is to allow registered

users to maintain a list of contact details of people with whom they have some

level of relationship, called Connections.

Users can invite anyone (whether a site user or not) to become a connection.

However, if the invitee selects "I don't know" or "Spam", this counts against the

inviter. If the inviter gets too many of such responses, the account may be

restricted or closed. LinkedIn also supports the formation of interest groups, and

as of March 29, 2012 there are 1,248,019 such groups whose membership varies

from 1 to 744,662. In July 2011, LinkedIn launched a new feature allowing

companies to include an "Apply with LinkedIn" button on job listing pages. The

new plugin will allow potential employees to apply for positions using their

LinkedIn profiles as resumes. All applications will also be saved under a "Saved

Jobs" tab.

6.Jabong.Com –

Jabong.com is an Indian fashion and lifestyle e-

commerce portal. It retails apparel, footwear,

accessories, beauty products, fragrances, home

accessories and other fashion and lifestyle

products. The company is headquartered in

Gurgaon, NCR. The site started operations in January 2012. It was co-founded

by Arun Chandra Mohan, Praveen Sinha, Manu Jain, & Mukul Bafana.The

managing officers are Arun Chandra Mohan and Praveen Sinha. In March 2013,

Jabong was shipping 6000-7000 orders a day.

In March 2013, the annual revenues of Jabong was estimated to be 100-150 MN

USD.During September 2013 Jabong was shipping 14,000 orders on a daily basis

out of which 60% were from small towns. Jabong was one of the most visited e-

commerce sites during the Great Online Shopping Festival 2013. Company

representatives claimed that its revenues increased five to six times compared

to a usual day, and that Jabong set a record for sale in the male fashion category.

7.PayPal-

PayPal is an international e-commerce business

allowing payments and money transfers to be made

through the Internet. Online money transfers serve

as electronic alternatives to paying with traditional

paper methods, such as checks and money orders.

In addition, eBay purchases made by credit card

through PayPal may incur extra fees if the buyer and seller use different

currencies. On October 3, 2002, PayPal became a wholly owned subsidiary of

eBay.

The per transaction limit had been set to USD 3000, since October 14, 2011.

However, on July 29, 2013 PayPal has increased the per transaction limit to USD

10,000. In September 2010, PayPal froze the account of Markus Persson,

developer of independent video game Mine craft. Persson stated publicly that

he had not received a clear explanation of why the account was frozen, and that

PayPal was threatening to keep the money if they found anything wrong. His

account contained around €600,000.In December 2010; PayPal permanently

restricted an account used to raise funds for WikiLeaks citing it was in violation

of the PayPal Acceptable Use Policy.

8.Google -

Google is an American multinational corporation

specializing in Internet-related services and

products. These include search, cloud computing,

software, and online advertising technologies.

Most of its profits are derived From Ad Words.

Google was founded by Larry Page and Sergey Brin while they

were Ph.D. students at Stanford University. The corporation has been estimated

to run more than one million servers in data centers around the world and to

process over one billion search requests and about 24 petabytes of user-

generated data each day. In December 2013 Alexa listed google.com as the most

visited website in the world. Numerous Google sites in other languages figure in

the top one hundred, as do several other Google-owned sites such as YouTube

and Blogger.

Its market dominance has led to prominent media coverage, including criticism

of the company over issues such as copyright, censorship, and privacy. As of

2013, Google had 47,756 employees (in the fourth quarter, including the

Motorola subsidiary), among them more than 10,000 software developers

based in more than 40 offices. In 2013 Google launched Google Shopping

Express, a delivery service initially available only in San Francisco and Silicon

Valley. On February 3, 2014, Google released its first Chrome cast SDK. Revenue

Increase US$ 59.82 billion (as on 2013).

9.Netflix –

Netflix, Inc. is an American provider of on-demand

Internet streaming media available to viewers in

North and South America, the Caribbean, and parts of

Europe (Denmark, Finland, Ireland, the Netherlands,

Norway, Sweden, and the United Kingdom), and of

flat rate DVD-by-mail in the United States, where

mailed DVDs are sent via Permit Reply Mail. The

company was established in 1997 and is headquartered in Los Gatos, California.

It started its subscription-based digital distribution service in 1999, and by 2009

it was offering a collection of 100,000 titles on DVD and had surpassed 10 million

subscribers. As of mid-March 2013, Netflix had 33 million subscribers.

That number increased to 36.3 million subscribers (29.2 million in U.S.) in April

2013.As of September 2013, Netflix Q3 2013, Netflix reported global streaming

subscribers at 40.4 million (31.2 million in U.S.).By Q4 2013, Netflix reported

33.1 million U.S. subscribers. In 2010, Netflix's stock price increased 219% to

$175.70 and it added 8 million subscribers, bringing its total to 20 million.

Revenue jumped 29% to $2.16 billion and net income was up 39% to $161

million. Revenue Increase US$4.37 billion (FY 2013).

10.AirBNB -

AirBNB is a website for people to rent out lodging,

including private rooms, entire apartments, castles,

boats, manors, tree houses, tipis, igloos, private

islands and other properties. It has over 500,000

listings in 33,000 cities and 192 countries. Founded in

August 2008 and headquartered in San Francisco, the

company is privately owned and operated by AirBNB,

Inc. Users of the site must register and create a personal online profile before

using the site. Every property is associated with a host whose profile includes

recommendations by other users, reviews by previous guests, as well as a

response rating and private messaging system. As of October 2013, it is reported

that AirBNB has served 9 million guests since its founding in August 2008. It took

four years to reach 4 million alone, and it only took less than a year to reach 9

million.

In January 2012, AirBNB announced its 5 millionth night booked internationally

through the service. Of these bookings, 75% of the business came from markets

outside of the continental United States. In June 2012, the company announced

10 million nights booked, doubling business in 5 months.In late December 2013,

the company reported it had over six million new guests in 2013, and nearly

250,000 properties were added in 2013.

BUSINESS MODEL SUMMARY :

How will you turn users of your website into money? Is there a plan for it? How

will you measure it? For a hybrid site you need to make sure you explain how

the hybrid will make revenue. Will you have a commerce portion? Will you be

depending on sponsorships and advertising? Will you be selling services to your

users? Make sure that you think about how you will ultimately make your

website venture bring in real money.

Try to think of your website benefits in monetary terms. This is a good time to

your sales forecast. The sales projected might actually be business benefits

instead of sales: increased closing percentage, increased customer satisfaction,

or increased retail traffic. Think about how those benefits might fit into a sales

forecast, because then you’ll be able to compare monetary benefits to expenses.