10 web based business model 2014

1. 10- DIFFERENT
WEB BASED
BUSINESS MODEL
MUSTAHID ALI
MBA-3, ROLL NO: 1334
UNIVERSAL BUSINESS SCHOOL
BY

2. 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

3. 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

4. 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

5. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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

12. 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.

13. 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

14. 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.

15. 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

16. 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.

17. 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

18. 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.

19. 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

20. 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).

21. 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

22. 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).

23. 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.

24. 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.

25. 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.