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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...

GoFundMe Business Model Case Study

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...

Ketto Business Model Case Study

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 Business Model Case Study

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...

Ikea Business Model Case Study

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,...

ProtonMail Busines Model Case Study

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...