HomeBusiness Models

Business Models

YouTube Business Model Case Study

In November 2006, almost two years after its founding in February 2005, Google acquired YouTube for a then-hefty price of $1.65 billion.  In the 2020 annual report, Google reported that YouTube generated $19.7 billion from advertisements alone in 2019 (Youtube generates revenue through other income streams as well, which we will discuss below), contributing 10.83% to Google’s total 2020 revenue.  Youtube has, undoubtedly, been one of the most remarkable acquisitions in the history of tech. It is the second most popular website in the world after Google. Source: Similar Web  But when it comes to engagement metrics like avg visit duration, pages per visit...

Signal Business Model Case Study

Before the age of technology, it was relatively easier to lead a life private. But as our lives become increasingly digital, maintaining personal privacy has become difficult and deserving of more time and thought than earlier. These days, technology giants like Google and Facebook track and store data about us to enable advertisers to target us with ads efficiently. And it's not just that. Data breaches and inappropriate data sharing have also become common. According to Wikipedia, a collection of 2.7 billion identity records were posted on the web for sale in 2019 alone, of which 774 million were unique...

WhatsApp Business Model Case Study

WhatsApp, the product, has had a crazy journey, and I mean that, like literally. Started by two founders who hated advertising and were pro-privacy, WhatsApp ended in the hands of Facebook -- the one big tech giant that is most certainly not revered for user security and privacy. While WhatsApp thrived under Facebook, growing from 450 million monthly active users at the time of acquisition in 2014 to over 2 billion monthly active users at the time of writing, the founders of WhatsApp ended up leaving Facebook over disagreements on the monetization future of WhatsApp, with one of them...

Picsart Business Model Case Study

In recent years, the photo and video app category has experienced runaway success, driven by the rise in consumer fascination to edit photos and videos. Photo and video apps made nearly $2billion in 2019, up from $240 million in 2016 at a compound annual growth rate of more than 100 percent. While Apps like YouTube & Tik Tok, and Twitch are a few winners anyone could guess, one app relatively lesser-known app that regularly features among the top 10 revenue makers in the photo and video app category is Picsart. In January 2020, Picsart stood fifth among the top revenue makers in...

Inshorts Business Model Case Study

By July 2015, almost two years into launch, Inshorts had achieved a milestone of 1M Android App Installs with a 4.5-star rating on Google Play Store, but the company was still not fretting over monetizing the product. Azhar Iqbal, CEO of Inshorts laid out the company’s strategy at a panel discussion in FICCI Frames 2016, “Inshorts currently does not make any money. We’re right now working only of venture capital money. There’s no particular revenue model. Right now, our main focus is trying to get eyeballs on Inshorts and make sure people read our summaries as they don’t have time.” So then how did Inshorts...

Figma Business Model Case Study

At the time Figma was started, in 2012, IBM employed one designer for every 72 engineers. By 2019, IBM had eight engineers to every designer, and the ratio went to 3:1 on mobile. And it wasn't just IBM that became more serious about design — the entire tech industry switched to the design-heavy product development approach. Atlassian went from 1 designer : 25 engineers in 2012 to 1 designer : 9 developers in 2017.  LinkedIn went from 1 designer : 11 engineers in 2012 to 1 designer : 8 developers in 2017.  Dropbox went from 1 designer : 10 engineers in 2012 to 1...

Lemonade Business Model Case Study

Companies can generally are categorized into two types: ones that look to make incremental advances in an existing industry to stay relevant in a constantly changing competitive landscape or look to turn entire industries on their head by leveraging innovation. Lemonade falls into the latter category. And the industry Lemonade is trying to disrupt is insurance. But before we get into how exactly Lemonade is different from legacy insurance players, we need to understand better how the insurance industry works. So, let's dive into it. From an insurer's point of view, insurance might be a vital tool to safeguard for rainy...

Nykaa Business Model Case Study

The year is 2012. It's been five years since Flipkart started operations in India. Amazon is a year away from entering the Indian market. Internet adoption is happening at a crazy place.  In the same year, 2012, Nykaa starts as a niche online retailer focused on beauty products. Today, Nykaa's website gets around 10 million monthly average website visits. To add to its success in the digital world, Nykaa also runs 76 offline stories.  In around a decade since its founding, Nykaa has become synonymous with beauty shopping in India, pushing forward the growth of the beauty industry in the country. Nykaa is...

Instagram Business Model Case Study

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...

Indiegogo Business Model Case Study

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...