What are Barriers to Exit & Types of Barriers to Exit

Let's suppose that an airline has been incurring recurring losses and wants to shut shop to avoid further losses. However, the airline owes a considerable amount of debt to its investors, using whose money the airline purchased airplanes in the first place.  Scraping the airplanes would not give enough return on their original value. Another airline looking to amp up its fleet numbers would be ideal to buy the planes. But finding such a buyer when the struggling airline is looking to exit the business would be an uphill task. If the airline doesn't find a buyer, it would have...

What are Barriers to Entry & Types of Barriers to Entry

Let's suppose someone wants to start a lemonade stand. Getting one up and running would be relatively easy and within the financial reach of the majority of the population. In this case, one could say that the barriers to entry to starting a lemonade stand business are low. On the other hand, if you wanted to start a new airline, getting one up and running would be relatively more difficult than starting a lemonade stand and outside the financial reach of the majority of the population. And say even if you had the financial resources needed to create an airline,...

Amazon Unbound Book Summary

In 2014, Brad stone published 'The Everything Store: Jeff Bezos and the Age of Amazon,' chronicling Amazon's journey from its inception until the year of publishing. In 2021, Brad Stone released another book, Amazon Unbound: Jeff Bezos and the Invention of a Global Empire, chronicling Amazon's growth from 2014 to 2021. Both books are essential reading for those who want to make sense of Amazon's all-encompassing and, at times, perplexing business. I read 'The Everything Store,' Stone's first book on Amazon, and made a book summary in Dec 2020. So, when Stone released 'Amazon Unbound' in May 2021, I decided to read...

Instagram Business Model: How Instagram Makes Money in 2021

In April 2012, Facebook acquired Instagram for a then-unprecedented $1billion. At the time of the acquisition, Instagram was growing fast, but it had only 25 million registered users — minuscule compared to Facebook's hundreds of million users. To top it off, Instagram was not bringing in any revenue; it was being run by 13 employees and only two years old. Before Facebook closed the deal, even Twitter had tried its hand at courting Instagram. But Instagram's founders, Kevin Systrom and Mike Krieger decided to go ahead with Facebook because other than the massive sum of money, Zukurberg dangled the carrot of independence. If Instagram...

How Indiegogo became one of the leading Entrepreneurial fundraising platforms

Until the first decade of the 21st century, the traditional model of raising money to start a business included either borrowing money from a bank in exchange for collateral or convincing venture capitalists your idea was worthy of investment in exchange for equity. Even though these models had their own set of pros and cons, both rested on the assumption that the business will most likely succeed, moving customer validation, if not entirely, then for the most part, to a post-launch date. However, Indiegogo's entrepreneurial crowdfunding model flips the traditional fundraising model on its head. Under the Indiegogo Model, aspiring...

How GoFundMe Became the World’s Largest Crowdfunding Platform

The first noteworthy instance of crowdfunding on the internet occurred in 1997 when fans of the British rock band Marillion raised US$60,000 to fund an entire U.S. tour. Crowdfunding, as a concept, had existed before, but the advent and the subsequent popularization of the internet helped it reach an unprecedented number of people.  It would still take more than a decade since 1997's Marillion crowdfunding campaign for the birth of crowdfunding companies like GoFundMe & Kickstarter, both of which are now giants of the crowdfunding space. With time, the causes for which people began raising money using the internet also diversified. Today, we see crowdfunding...

How Ketto became India’s Largest Crowdfunding Platform

In 1885, the Statue of Liberty was shipped from France to the US. Designed by a French sculptor named Frederic Auguste Bartholdi and paid for by the French government, the Statue was to be a diplomatic gift to the US.  But when the Statue arrived in New York, it was in pieces, awaiting assembly. The Statue's granite plinth, the base upon which it was to stand, required $250,000, a large sum at the time. The American Committee of the Statue of Liberty, a group tasked with raising the amount necessary, fell short by more than a third. Grover Cleveland, then New...

Snapchat’s Growth Story & Business Model

In 2013, Evan Speigel, Snapchat CEO, famously turned down a $3 billion acquisition offer from Facebook. To put things into perspective, Facebook acquired Instagram for $1 billion in 2012.  And 2013 was not the last time Facebook tried to buy out Snapchat. Facebook was interested in buying the upstart social media competitor as late as 2016.  But Snapchat, like another counterpart, Twitter, decided to chase an independent destiny. Whether Snapchat made the right decision or not is something that we can assess in hindsight based on its current financial standing and future potential.  And that's what we will do in this blog. But first, we will look at...

How Ikea Became the World’s Largest Furniture Retailer & How it Makes Money

Started 78 years ago, in 1943, Ikea has gone on to become the largest furniture retailer. And like any brand that goes on to become a market leader, Ikea pioneered multiple innovations in its industry. To add to that, Ikea, in recent years, has also adapted itself to stay relevant in the digital era.  In this blog, we will dive into the strategies that propelled Ikea to the top of the furniture industry, look into how Ikea has maintained relevancy in the digital world and how it makes money.  Ikea's Founding & Growth Story Like most entrepreneurs who impact the world, Ikea's founder,...

Why 20M Users Prefer Paid Email Service ProtonMail Despite Gmail Being Free

Around 4 billion people were using one or another email service in 2020. And approximately 306 billion emails were sent and received every day worldwide.  One reason why email usage is so widespread worldwide is that it is, for the most part, free. And second, there's no shortage of free email services — Gmail, Outlook & Yahoo Mail are popular examples. Despite this, more than 20 million people worldwide are now using a lesser-known email service called ProtonMail, which started in 2014.  The small yet substantial rise in popularity of the relatively new ProtonMail begs the question of why anyone would switch from...