Instacart Business Model: How Instacart Makes Money

You want to watch a blockbuster at 3 am while the cable airs commercials, Netflix allows you to do that. You want a cab at your house without waiting for a cabbie to spot you, Uber allows you to do that. You want food delivered from a restaurant at the tap of a button, Doordash allows you to do that.  We are now living in a period where goods and services can be accessed instantly. However, until recently, grocery delivery was still a problem that no company had successfully. And this is where Instacart spotted an opportunity in 2012. Instacart is...

Zomato Business Model: How Zomato Makes Money

While Zomato was started as a simple restaurant listing directory in 2008, the company has come a long long way since then venturing into multiple business segments, making the business more diverse than a Zomato user interacting with the business would think it to be. In this blog, we will try to demystify Zomato’s business model. But before we do that, let's take a look at its founding story & how the company has evolved over the years to establish better context. Zomato Founding & Growth Story The only person who has always been involved in the operations of Zomato is the...

High Low Pricing [ Definition, Examples, Advantages & Disadvantages ]

High Low pricing is a popular pricing strategy in which a company charges a high price for a product in the beginning and reduces the prices later using discounting. Unlike the price skimming model, however, prices are not slashed permanently. Under the high low model, product prices alternate between high & lower during a particular time duration.  The goal of high low pricing is to lure customers to visit the stores with discounts, which might also lead them to buy other products as a result. The high low pricing is also different from everyday low pricing, which consistently uses low...

Price Skimming [ Definition, Examples, Advantages & Disadvantages ]

Choosing a pricing strategy is a defining point in the life of a business — it decides the customer segments a business caters to, how much profit it will make, and the overall brand image of the endeavour. Price Skimming is one of the pricing strategies employed by businesses out of a host of different pricing models. Simply put, Price skimming is a pricing strategy in which the price of goods and services is highest at the time of launching a product to maximize profits from upper-market segments, and then lowered later on to attract price sensitive mid-market and lower-market...

TikTok Business Model Case Study

TikTok changed the social landscape in more ways than one. Firstly, TikTok holds the record for being the fastest growing social media platform ever. Launched in 2016, the app attracted over 3 billion downloads and captured one-third of all social media users in a short span of fewer than four years. To put TikTok's growth into context, it took Facebook & Instagram almost a decade for the same. Secondly, TikTok is one of the rare top social media platforms to emerge out of China. Before it came into the picture, all major social media companies were born in the...

How to Create Powerful videos for your business.

Videos are an effective marketing tool for thriving companies. Try to create stunning videos that suit business purposes the best and help reach a potential group of customers online. A powerful video can make a huge difference in how you wish to project the brand to the customers, and this shall help to stand apart from the rest.  You have to decide on the specific purpose of the video and if it is for promotional purposes, make sure that the video reaches potential customers. The video is an excellent marketing tool, and you have to decide on the right type...

Vertical Integration [ Definition, Types, Advantages & Disadvantages ]

When a business chooses to expand by either acquiring another company or developing expertise in an unchartered area itself, it uses either of two strategies — Horizontal Integration or Vertical Integration. Understanding these two concepts is critical to make sense of the strategy behind decisions made by companies and make a reasonable prediction about their future.  Put simply, Horizontal Integration is when a company tries to expand by acquiring a similar one in their industry at the same level of the supply chain. Marriott Hotels' acquisition of Starwood Hotels & Resorts for $13 billion in 2015, which created the world's...

CIRCLES Method

Created by Lewis C. Lin, Circles Method is a framework that product managers can use to develop comprehensive & thoughtful solutions to product design questions and challenges. To give examples, these product design questions could be anything from redesigning the Facebook newsfeed to improving Pinterest.  The Circles Method helps product managers cover all major bases of a unique product design problem using seven steps, which together form the CIRCLES acronym: Step 1: Comprehend the situation Step 2: Identify the customer  Step 3: Report the customer's needs Step 4: Cut, through prioritization Step 5: List Solutions Step 6: Evaluate tradeoffs Step 7: Summarize your recommendation. Let's look at each of...

Backward Integration [Definition, Examples, Advantages & Disadvantages]

Before one can understand backward integration, one must first understand vertical integration because backward integration is essentially a type of vertical integration. But just understanding Vertical Integration without learning about its counterpart strategy — Horizontal Integration — would be like solving a puzzle with a missing piece. So, to help you develop a holistic understanding, I will first run you through Vertical & Horizontal integration briefly before explaining Backward Integration.   Companies looking to expand their business generally employ either of the two strategies: Horizontal Integration or Vertical Integration.  Horizontal integration is when a company expands by acquiring a similar one in their...

Decacorn Company Definition + Decacorn Company List

The goal of reaching a valuation of $1 billion, or in other words, becoming a 'Unicorn', is considered a milestone in the life of a startup.  But with more than 850 unicorn companies as of 2021 in the world compared to just 142 in 2015, the unicorn status has lost its charm. Startups are now setting their eyes on higher targets of becoming a ‘Decacorn’, Put simply, Decacorns are private companies having a valuation of more than $10 billion. Relative to Unicorns, Decacorns are a much more exclusive community, consisting of around 30+ companies as of 2021. Some familial examples...