Topic Five - Business Models

1. Describe the features of each of these business models, on your blog page, giving an example of each.

Brokerage:“Brokers are market-makers: they bring buyers and sellers together and facilitate transactions.”
eBay is an Auction Broker.

Advertising: Traditionally advertisements were used on mass media sources such as newspapers, radio and television, however advertising has now moved to online. Advertisements used online are usually in the form of banners and links. Google is a form of advertising as an online forum because it is a highly trafficked website displaying advertisements in conjunction with the relevant information searched.

Infomediary: This is when information is exchanged from companies and consumers. The companies supply the information and the consumers are looking for the information in order to understand the market, producers and products.

Merchant: The merchant is a wholesaler/retailer of a products and services. Manufacturers are not usually involved in this process as the stock is marketed differently due to the different form of selling and marketing techniques. Amazon is a form of internet merchant.

Manufacturer (Direct): The direct source that creates a product or service and after producing it they reach buyers directly via distribution channels. Dell Computers.

Affiliate: The model provides purchase opportunity wherever people may be surfing by offering financial incentives such as percentage from profit/revenue, to affiliate partner sites. Examples: Barnes and Noble.

Community: This is a media tool for free social networking, telephone, email and email. This is the use of the internet in a regular and emotional basis. As these websites are free to use, the ower of the website can only generate profits with the use of advertising. Examples of addicting social networking and regularly used websites are facebook, Wikipedia and twitter.

Subscription: Subscription is used to charge users on a period of time spent on a site rather than the actual usage. Netflix uses subscriptions.

Utility: This is the opposite of subscription, in which the usage is charged, such a “pay as you go” approach. An example of this approach is Slashdot.

2. What is the business model for TWITTER and how is it raising revenue?

Twitter has a high rate of traffic therefore they are able to introduce advertising, their site is used for social network therefore creating a sense of emotion and loyalty of subscription and can one day target all the business models. Revenue is raised due to the advertisements and large range of media coverage.

3.Mobile phone use per 100 populations - Australia, USA, China, India and UAE:
Unite Arab Emirates (UAE) 208.65

Australia 104.96

USA 86.79

China 47.95

India 29.36

4. Internet use per 100 populations - Australia, USA, China, India and UAE:

USA 74

Australia 71.98

Unite Arab Emirates (UAE) 65.15

China 22.28

India 4.38