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IKEA Business Model Case: How IKEA Makes Money

Started 79 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 understand IKEA's business model. IKEA Founding & Growth Story Like most entrepreneurs who impact the world, IKEA's...

Shopify Business Model: How Shopify Makes Money

If we look at it from a narrow lens, Shopify is in the business of making it easier for people without coding skills to launch an online business. But if we zoom out, we could classify Shopify as an upstart in the broader retail market.  Yes, it is primarily in the business of internet retailing. But retail is not limited to the internet. Selling online is a sister distribution channel to the traditional offline channel. The whole point of commerce is to be present where the customer is, be it online or offline, or both, in an integrated fashion.  Shopify now...

Quora Business Model: How Quora Makes Money

Before Adam Angelo started quora, he had a job that most engineers would consider to be a dream position: he was the Chief Technology Officer at Facebook. In a 2010 interview with Business Insider, almost a year after he had started working on quora in June 2009, Adam shared what made him take the decision to leave Facebook and start on his own, “I could make a bigger impact on the world by starting something new rather than just continuing to optimize Facebook.” But it wasn’t like there weren’t any Q/A answer sites when he started Quora in 2009. There was Reddit,...

Snapchat Business Model: How Snapchat Makes Money

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 its 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...

ProtonMail Busines Model: How ProtonMail Makes Money

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 50 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...

Nykaa Business Model: How Nykaa Makes Money

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 12 million monthly average website visits. To add to its success in the digital world, Nykaa also runs 84 offline stores across 40 cities.  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....

Rebel Foods Business Model: How Rebel Foods Makes Money

In his book Zero to One, Peter Theil, previously co-founder of Paypal and venture capitalist, argued that the inherently hyper-competitive nature of restaurants makes them a mediocre business.  Here’s what he wrote in Zero to One: “Suppose you want to start a restaurant that serves British food in Palo Alto. “No one else is doing it,” you might reason. “We’ll own the entire market.” But that’s only true if the relevant market is the market for British food specifically. What if the actual market is the Palo Alto restaurant market in general? And what if all the restaurants in nearby towns are...

Fiverr Business Model: How Fiverr Makes Money

The expected value of the global gig economy, which is a term used to classify independent contractors/freelancers, is projected to be $455 Billion by 2023.  In 2018, the global gig economy generated $204B in Gross Volume — with transportation-based services comprising 58% of the value, the asset-sharing sector capturing 30% & the remaining 12% being distributed among professional services & HGIM (Handmade Goods, Household & Miscellaneous Services) Fiverr, which falls under the professional services category of the gig economy, is a two-sided digital marketplace that connects people who are interested in doing gig work (sellers) to people who want to get gig...

GoFundMe Business Model: How GoFundMe Makes Money

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 in the crowdfunding space. With time, the causes for which people raised money using the internet also diversified. Today, we see crowdfunding initiatives...

Fortnite Business Model: How Fortnite Makes Money

In the year 2020, Fortnite made a whopping $5.1 billion in revenue. Despite that, Fortnite accounted only for 4.02% of the gaming industry's 2020 annual global revenue, which stood at $126.6 billion. Many among us might not realize this, but the gaming industry has grown to become the largest subset of the entertainment industry.  Even bigger than the movie & music industry, both of which made $23 billion & 12 billion respectively in 2020. Around 78% of the total gaming industry revenue in 2020 was attributed to the free-to-play business model — which is also employed by Fortnite.  In this blog, we will dig deeper into Fortnite — running...