Here you are my Final presentation : MyMajorCompany
The Chapter 2 !
vendredi 20 novembre 2009
vendredi 6 novembre 2009
vendredi 9 octobre 2009
Vente privée Analysis
Vente-privee.com is the original founder of exclusive sales events on the internet with over 20 years experience specializing in fashion and stylish homeware. These limited-time sales have led to the creation of a new way of shopping.
Vente-privee.com organizes exclusive designer brand sales in all product categories: fashion, fashion accessories, homeware, sports products, electronics and wine to name just a few. VP has direct partnerships with more than 850 designer brands across Europe, which allows them to offer huge discounts from 50% to 70% off RRP.
To publicize a sale, an email trailer is sent to each member two days before every exclusive sale. From the opening day, purchases can only be made online in a secure environment. Sales last on average for three days.
VP.com has been created in 2001 by Jacques-Antoine Granjon. Now the turnover of the company is more than 610 million €.
The principal and maybe the only source of revenue of VP.com is the margin that they create by selling products.
Indeed, it’s very simple, they buy products from stocks that haven’t been sold to a brand and they resell it by creating a margin.
There are three main actors: The producer, the intermediary (VP.com) and the customer.
In the traditional trade sector, we often find the same business system. Thus, we have the producer that sells its products to the intermediary and then the last one sells it to the customers by creating revenue (margin)
Concerning VP.com, the online business is considerably the same, but the process is different. The intermediary is going first to negotiate with the producer some stocks he wants to sell. Once the stock has been booked – which is not yet sold by the intermediary – this last one will then put on sell on his website even before buying it.
The customer will then buy the product to the VP.com website even before the online business structure bought it to the producer. VP.com will buy then products that have been booked to the producer by adapting his purchases to the customers’ offers. It’s a bit like working in “just in time distribution”.
This way of doing business can solve a lot of problems:
- First for the company owners: this model is very advantageous, because customers pay even before that PV.com has bought the merchandise. Then this kind of business model allows a self-financing by customers. PV.com does definitely not need financing resources. We cannot find this kind of advantage in any other business model.
- Then for suppliers: They destock their last products without attending to their brand image. Thanks to VP.com, which is in charge to set up some video promotions in their selling contracts, brands are keeping a very good image and in the same time they sell their non sold products and they widen their clientele. They can also renew the offer more often. However the advantage of keeping a good brand image can sometimes be degrading in the way it is used by the intermediary.
- Finally for customers: They can find very god quality products, cheaper than in stores by staying at home. Furthermore they have the feeling to be privileged thanks to the subscription and sponsor obligation.
Another industry that could adopt this kind of business model can be the hotel sector. It would be a really good advantage for them to have another platform to sell their room that have not bee sold for the coming week. However it already exists with the central reservation but they are not making any reduction. This business could appear in the yield management and make reduction if the room is not sold for the coming days, but it’s really harder to schedule than a stock of product. We also apply this model to the airline companies or even to the travel industry.
VP.com has a lot of competitors but they came to the market 4 years after them, then VP.com still have the advantage and even if they wanted to catch them, they won’t have the money. Why? Because on a e-business model like VP.com when you’re small you can have a growth which is very correct but when you’re big, the growth can be very big, and you have to invest in order to develop yourself to face the demand. Thus, principal customers, as they are not able to compet with VP.com have repositionned themselves.
24h00.fr is specialized in women clothes.
Vente-privee.com organizes exclusive designer brand sales in all product categories: fashion, fashion accessories, homeware, sports products, electronics and wine to name just a few. VP has direct partnerships with more than 850 designer brands across Europe, which allows them to offer huge discounts from 50% to 70% off RRP.
To publicize a sale, an email trailer is sent to each member two days before every exclusive sale. From the opening day, purchases can only be made online in a secure environment. Sales last on average for three days.
VP.com has been created in 2001 by Jacques-Antoine Granjon. Now the turnover of the company is more than 610 million €.
The principal and maybe the only source of revenue of VP.com is the margin that they create by selling products.
Indeed, it’s very simple, they buy products from stocks that haven’t been sold to a brand and they resell it by creating a margin.
There are three main actors: The producer, the intermediary (VP.com) and the customer.
In the traditional trade sector, we often find the same business system. Thus, we have the producer that sells its products to the intermediary and then the last one sells it to the customers by creating revenue (margin)
Concerning VP.com, the online business is considerably the same, but the process is different. The intermediary is going first to negotiate with the producer some stocks he wants to sell. Once the stock has been booked – which is not yet sold by the intermediary – this last one will then put on sell on his website even before buying it.
The customer will then buy the product to the VP.com website even before the online business structure bought it to the producer. VP.com will buy then products that have been booked to the producer by adapting his purchases to the customers’ offers. It’s a bit like working in “just in time distribution”.
This way of doing business can solve a lot of problems:
- First for the company owners: this model is very advantageous, because customers pay even before that PV.com has bought the merchandise. Then this kind of business model allows a self-financing by customers. PV.com does definitely not need financing resources. We cannot find this kind of advantage in any other business model.
- Then for suppliers: They destock their last products without attending to their brand image. Thanks to VP.com, which is in charge to set up some video promotions in their selling contracts, brands are keeping a very good image and in the same time they sell their non sold products and they widen their clientele. They can also renew the offer more often. However the advantage of keeping a good brand image can sometimes be degrading in the way it is used by the intermediary.
- Finally for customers: They can find very god quality products, cheaper than in stores by staying at home. Furthermore they have the feeling to be privileged thanks to the subscription and sponsor obligation.
Another industry that could adopt this kind of business model can be the hotel sector. It would be a really good advantage for them to have another platform to sell their room that have not bee sold for the coming week. However it already exists with the central reservation but they are not making any reduction. This business could appear in the yield management and make reduction if the room is not sold for the coming days, but it’s really harder to schedule than a stock of product. We also apply this model to the airline companies or even to the travel industry.
VP.com has a lot of competitors but they came to the market 4 years after them, then VP.com still have the advantage and even if they wanted to catch them, they won’t have the money. Why? Because on a e-business model like VP.com when you’re small you can have a growth which is very correct but when you’re big, the growth can be very big, and you have to invest in order to develop yourself to face the demand. Thus, principal customers, as they are not able to compet with VP.com have repositionned themselves.
24h00.fr is specialized in women clothes.
mercredi 23 septembre 2009
TripWolf study case
TripWolf is a website that combines travel tips from two different kinds of travelers. In one hand we have travel experiences and reviews from professional travel writers with a vast collection of travel information, and in another hand we have feedbacks from a worldwide community of thousands of travelers who have already visited the places and countries you want information on. “TripWolf is like a big word of mouths traveler association.”
The website offers the possibility to browse through more than 400,000 locations, city guides, personal recommendations and travel blogs using the TripWolf travel map (google mal). Tips are given by professional travelers (“trip gurus”) for very specific travel advice in order to find favorite spots in any city. Then, we can also create, download and print our free PDF travel guide! And even Import our friends through facebook and share our travel pictures.
TripWolf is offering a complete range of information about almost every destination; in few mouth clicks we have a full access to a lot of tips posted by worldwide travelers and their recommendations on each destination, then the customer can also plan his next trip step by step.
The site also searches the best hotel rates and flight rates for travelers across more than 40 hotel booking sites and travel agencies (Such as fastbooking.com; lateshomes.com; ratetogo.com…) Which allows to those different partnerships to have a biggest activity and consequently more revenues.
The main asset of Tripwolf is that the platform is completely free, there is no subscription fee for consulting advice and feedbacks, the site is evolving thanks to travelers that want to express their feeling and share their experiences. So according to the article about the 9 business model of the web, we can assume that TripWolf is using a community model. Indeed information are not verified and checked by Tripwolf but only by posters. However, the site is a lot more that a community model, it is also part of the infomediary model. Why? Because travel journalists are employed by TripWolf and give information and advice to people that surfs on the website, It’s a bit like “Le Guide Michelin, but for free…
There is one question that should come directly: If this business is part of those models, how can it make money and be profitable? Very simple: TripWold is using another business model which is advertising. Indeed, the website is full of ads during the research of trip advices, those advertisements are certainly their main source of revenue.
We can be tempted to say that Tripwolf is also using broker business model, however, Tripwolf is not selling anything. There are just advising and redirecting people to hotel booking platform (which are brokers themselves). We can pretend that they eventually take a commission on each sale from partners booking sites or a partnership fee has been set up previously. We will see further how they can improve their revenue and maybe become a broker.
Tripwolf is already taking the wave of the I-phone market, they have created an application that can be downloaded to Iphone and then travelers can have direct access to tips and advice during their trip or just before to be on the departure. This application is also free for customers but is also full of ads.
Tripwolf is not unique on the market; TripAdvisor is already well set up and well known by everybody as well as Lonelyplanet. Both of those competitors have also an Iphone Application.
This business model is definitely not applicable offline, even more with I-phone app, which is using 3G connection. Internet is fast. Nowadays, customers need to find information and real advice of people that have been there before us very quickly, they want real witnesses. Why? Thanks to the TV and their reality show and especially to information TV magazines that show people real life and experience. They want those can of information in live or at least very accessible.
To my mind, TripWolf is sustainable business; internet is becoming more and more common through people. As I mentioned it before, people need to have access to living information and real feelings from others. They don’t want to be had! Furthermore tourism is a sector with a hug growth year after year. Customers will always need to be helped through more and more tourism offers that came up every day. However, there is a lot of competitors on this” tips market”. They will have to differentiate themselves by different offer:
- For example they could become a broker instead of redirecting travelers to hotels booking platforms.
- They can also take the wave of sustainable tourism and become and expert of that niche. This way they will hit other people and other customers.
- They could advise people on fair tourism and help people to choose among different fair programs in the same way as today (community model). A fee can be asked as a donation to help a population and a % can be taken by Tripwolf to help developing new destinations and new partnerships.
mardi 21 juillet 2009
InnoCentive Study case
InnoCentive is a brainstorming platform for existing business of different fields such as chemistry, sciences, computers, maths etc… Business owners can find some help to develop new products or find answers to internal problems. They can also boost their innovations structures thanks to the online platform set in place by InnoCentive. Indeed, this platform is a place where thinkers and investors can meet together.
The main goal of innoCentive is to allow majors companies and non-profit organization to find solution thanks to the innovations provided by people all around the world. In other words, InnoCentive is a marketplace where creative minds solve some of the world's most important problems for cash awards accorded by companies.
Governmental, nonprofit organizations and companies such as Avery Dennison, Jannsen are represented as “Seekers”. There are posting a request on the on-line platform about an innovation they would like to develop by paying a deposit to innoCentive. In the other hand, “Solvers” are people that bring solutions and innovations for “Seekers”. As it said below, those people come from all around the world and can be represented by scientists, engineers, business people, engineering … Those last one are rewarded by awards accorded by companies if the project is chosen. InnoCentive has recorded more than 8000 scientists registered on InnoCentive since it has been created.
InnoCentive brings here a very good vision of the “customer in charge environment”, Indeed seekers/customers came up with a problem and solvers/suppliers give them the solution. However, the customers can choose the best solution and decide to reward only the one who has been selected. This last step represents the “customer in charge environment”.
This website can be the main competitor of R&D department of every company. It can bring another point of view and consequently new ideas quicker and cheaper.
Customers of InnoCentive website are basically company owner with difficulties to solve R&D costs and companies that want to innovate on their market share quickly. InnoCentive helps also nonprofit organizations to have access to huge opportunities and innovations. It also reduces the risk and exposure to costly research failure. Their main partnership is the Rockfeller Foundation (www.rockfound.org) which their role is to find solution to new problem of this 21st century.
InnoCentive generates revenue through challenge posting fees that are usually $15,000 coupled with back-end success fees that are 40 percent of the total paid by customers. However InnoCentive is still less expensive for business owner than to invest in internal R&D department (http://www.masshightech.com/stories/2008/10/20/weekly12-SAP-incents-InnoCentive-with-950K.html).
Other sources of revenues are commissions taken around 20% of the rewards accorded to the winner of the Open Challenge for the best innovation. Partnerships such Rockfeller foundation brings money as well. InnoCentive is also paid for offering new way of thinking or new strategies for companies in order to evaluate the capacities of the company analyzed and tries to bring added value to this one. They even guide them through the processes of changing and give them precious advice about innovation and how to integrate it into their internal activities.
InnoCentive has a great success through companies in R&D difficulties, indeed it allows them to gain time in their research of innovations, it’s lower in R&D costs because companies pay only for success innovation, it’s consequently 100% guarantee with the certification and test. The database of solvers is really big and only big companies could have been able to pay for this access to world class talent. As I said earlier, they even guide them into the cultural change and help them to integrate this new way of thinking into their companies.
InnoCentive solves problems even for Suppliers / Solvers: They are able to earn a lot of money if they are creative enough; they have a large freedom of action because they can work only on what they are interesting in it and when they want to do it. Furthermore, they have a true feeling of being useful to the mankind by bringing new ideas for nonprofit organization than tries to get the 21st century world better.
To my mind this business is more than suitable for our new century, where all new businesses are based on new technologies and new way of thinking. Added to this, the fact that the platform is online adds a large value to the concept. This kind of business could not be offline for the simple reason that it would not be able to gather all those people around a same idea and direction. The process would be too long and inefficient.
It’s important to notice that InnoCentive is not the only one to offer this kind of opportunity for companies looking for cheaper R&D. Philoptima is one of the direct competitors of InnoCentive. It helps foundations, donors, and other grant makers clearly describe a community challenge and create a cash prize to spur innovative ideas to help solve the problem... In another hand, Philoptima, also helps connect funders to nonprofits with specific implementation skills in a local community.
http://www.philoptima.org/
Fellowforce.com is also a competitor of InnoCentive. It was founded "To Connect Organizations and Talent, through Open Source, for limitless ideas, innovation & solutions". Fellowforce.com aims to open up organizations for outside-in participation from experts, consumers, and other interested parties to generate powerful new options through this collaboration. However it doesn’t concern nonprofit organization. Which makes InnoCentive more in the center of our 21st century.
http://www.fellowforce.com/
If I were running this business I would try to develop it in different languages in order to let more people access to this precious innovation which is online R&D for everyone by everyone. I would also implement more adds to allow more seekers and solvers to join the private circle of “mankind helpers”. Ads can be a group on facebook or other social networks. Then I would try to create more partnerships with nonprofit organization and even real companies. Those partnerships could bring more money to help solvers for very important new innovations.
Innocentive
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samedi 27 juin 2009
mercredi 24 juin 2009
Long Tail Concept
Does the Long Tail concept fit in the 'customer in charge' environment?
The long tail concept has been created by Chris Anderson, in the Wired Magazine. This concept defines all the products which are sold in small quantity but whose the sum of sales could collectively exceed the sale of the most sold products.
The Long tail is particularly adapted to Web distribution model because the cost of on-line publishing of a supplementary product is marginal and the virtual displays of e-commerce websites are infinite, unlike the physical stores which have to restrict themselves to propose only the best sales in order to make profit in a "small show room" (Fnac, Virgin, Wal Mart...)
In my opinion the long tail concept fit perfectly well with the customer in charge environment. Indeed, in the customer in charge environment the product has to adapt itself to its customers. And it's going to be more and more commun towards this news decades.
The concept of long tail is designed to fit in this environment, especially on the Web distribution model where there is no geographic restrictrition and very low publishing fees.
How does MyMajorCompany understand those two concepts ?
MyMajorCompany is a community label which allows the Internet users to produce directly their artists.
It has for ambition to become the main discovery gate, in order to launch and follow-up of the new musical talents in France then in Europe.
2 main objectives:
- To let internet users know a quality music. MyMajorCompany wants to gather the best of the non-signed artists and to allow the public to take advantage of their work.
-To involve the consumers in the artists selection and in their success. In MyMajorCompany, the Internet users become Producers. By deciding to bet on their favourite artists, they select those who will be produced, distributed and mediatized. They participate in the strategic decisions of their development and earn some money on the sales of the artists they support
By those two objectives MyMajorCompany fits with the customer in charge by let the customer to choose between several artists to be produced and apply the long tail concept by dealing with artists who have been left behind the mainstreams.
The long tail concept has been created by Chris Anderson, in the Wired Magazine. This concept defines all the products which are sold in small quantity but whose the sum of sales could collectively exceed the sale of the most sold products.
The Long tail is particularly adapted to Web distribution model because the cost of on-line publishing of a supplementary product is marginal and the virtual displays of e-commerce websites are infinite, unlike the physical stores which have to restrict themselves to propose only the best sales in order to make profit in a "small show room" (Fnac, Virgin, Wal Mart...)
In my opinion the long tail concept fit perfectly well with the customer in charge environment. Indeed, in the customer in charge environment the product has to adapt itself to its customers. And it's going to be more and more commun towards this news decades.
The concept of long tail is designed to fit in this environment, especially on the Web distribution model where there is no geographic restrictrition and very low publishing fees.
How does MyMajorCompany understand those two concepts ?
MyMajorCompany is a community label which allows the Internet users to produce directly their artists.
It has for ambition to become the main discovery gate, in order to launch and follow-up of the new musical talents in France then in Europe.
2 main objectives:
- To let internet users know a quality music. MyMajorCompany wants to gather the best of the non-signed artists and to allow the public to take advantage of their work.
-To involve the consumers in the artists selection and in their success. In MyMajorCompany, the Internet users become Producers. By deciding to bet on their favourite artists, they select those who will be produced, distributed and mediatized. They participate in the strategic decisions of their development and earn some money on the sales of the artists they support
By those two objectives MyMajorCompany fits with the customer in charge by let the customer to choose between several artists to be produced and apply the long tail concept by dealing with artists who have been left behind the mainstreams.
samedi 13 juin 2009
Second Life : Typical Freemium
Second Life is a perfect Freemium product
Second Life
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vendredi 12 juin 2009
Saturday's Assignment for E-business Class
What is a freemium ?
Freemium is a business model that works by offering basic services for free, while charging a premium for advanced or special features.
One Example of a freemium: Apps for smartphone: Paris Traffic
According to a new report from Juniper Research:
Annual revenues from value-added services upsold through downloaded apps are expected to exceed US$14 billion by 2014, . The report found that storefronts are increasingly likely to offer the facility to upsell premium content from within the app itself (including the App Store). The result being that the freemium business model will become increasingly prevalent over the next five years.
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