Tag: Business Model

Infosys – Powering Digital Dreams

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Infosys.

Digital technology is transforming services and businesses in today’s world. It is fundamentally changing operations and delivering value to consumers. It is also a cultural modification that wants organisations to experiment with various things and get comfortable with downfalls.

Infosys is an information technology consulting company. It is an Indian multinational company that provides information technology, business consulting, and outsourcing assistance. It considers itself to be a global leader in next-gen digital consulting. It is the 2nd largest IT company after TCS (Tata Consultancy Services). It is also the 596th biggest company in the entire world based on the terms of revenue.

If the above stats have already grabbed your interest, then you can dive into the full Infosys success story below, which contains the Infosys company profile, and has all the details regarding the Infosys owner, Infosys CEO name, everything about “how Infosys make money?“, its Founders and Team, Funding, Growth, Competitors of Infosys, and all about Infosys company.

Infosys – Company Highlights

Company Name	Infosys
Headquarters	Bangalore, Karnataka, India
Sector	IT, Software, Consulting, Outsourcing
Founders	N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal, Kris Gopalakrishnan, Ashok Arora, N.S. Raghavan and K. Dinesh
Founded	1981
Website	infosys.com

Infosys – About
Infosys – Startup Story
Infosys – Founders And Team
Infosys – Tagline, Slogan And Logo
Infosys – Business Model
Infosys – Revenue Model
Infosys – Funding And Investors
Infosys – Growth
Infosys – Challenges
Infosys – Competitors
Infosys – Future Plans

Infosys – About

Infosys is hailed as an Indian multinational information technology company that offers information technology, business consulting, and outsourcing services. Originally founded in Pune, Infosys is currently headquartered in Bengaluru.

It is provider of next-gen services. The company enables clients in more than 50+ countries to stay ahead of the innovation curve and outperform in the game. It has more than 187,000 employees working within it.

Infosys – Startup Story

The Infosys startup story came into existence in 1981. It was founded by the former employees of Patni Computer Systems. 7 people who were enthusiastic about writing codes and wanted to make it big in the American market – N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal, Kris Gopalakrishnan, Ashok Arora, N.S. Raghavan and K. Dinesh started the company with a meagre amount of INR 10,000 and named it Infosys Consultants. Mrs. Sudha Murthy gave this amount to her husband, Mr Narayana Murthy. The company began with a small office room. It was the front room of Murthy’s home and the registered office was Raghavan’s home. The company didn’t have any computer till 1983 because they couldn’t afford it. It took them two years to buy a computer on their own and the model was Data General 32-bit MV8000.

Infosys – Founders And Team

N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal, Kris Gopalakrishnan, Ashok Arora, N.S. Raghavan and K. Dinesh are the founders of the company.

Narayana Murthy is an Indian billionaire businessman and the co-founder of Infosys.
Nandan Nilekani is an Indian entrepreneur. He is the Non-Executive Chairman of Infosys.
S.D. Shibulal is an Indian business executive. He is the CEO and Managing Director of Infosys.
Kris Gopalakrishnan is the former executive vice-chairman of Infosys. Currently, he is the Chairman of Axilor Ventures.
Ashok Arora is also a founder of Infosys.
N.S. Raghavan is an Indian industrialist. He is one of the founders of Infosys.
K.Dinesh is the co-founder of Infosys. He completed his education from Bangalore University.

Nandan Nilekani, N.S. Raghavan, Kris Gopalakrishnan, N.R. Narayana Murthy, S.D. Shibulal and K. Dinesh (left to right), Founders, Infosys

Infosys – Tagline, Slogan And Logo

The tagline of the company is ‘Powered by Intellect, Driven by Values‘. This is the base tagline of Infosys. It focuses especially on re-communicating values. The company uses various slogans from time to time in its presentations.

The Infosys logo –

Infosys – Business Model

The Infosys business model is ideal. Previously the company concentrated only on Europe and the US preferring the (GDM) Global Delivery Model. During the 1990s Infosys focused on factors like Banking and Financial Services (BFSI), manufacturing, application development, maintenance, and testing. These all helped Infosys become a pioneer in the IT sector.

Infosys – Revenue Model

Improving Revenue by establishing productivity guidelines.
Improving Revenue by improving the process.
Improving Revenue by driving more work offshore.
Improving Revenue by increasing Reuse
Improving Revenue by taking giant leaps from small steps.
Improving Revenue by providing quality services.

Infosys – Funding And Investors

Infosys has raised a total amount of $200 million in funding over the 1 funding round.

Date	Transaction Name	Money Raised	Lead Investor
July 10, 2008	Post-IPO Equity	$200 million	Chrys Capital

Infosys is funded by Chrys Capital.

It has also made 21 investments.

Infosys – Growth

The Infosys growth story can be witnessed since it started trading in India in 1993. This was possible because the business had the ability to increase the per-capita revenues and attract the brightest investments on a go-forward basis.

Infosys was on unstable grounds when its first joint venture collapsed in 1989. However, the company saw a breakthrough with Data Basics Corp. where Infosys started to work as an onsite software developer for the US market.

Infosys eventually formed a JV again with KSA (Kurt Salmon Associates), which was nothing other than the completion of a full-circle for Infosys. It partnered with KSA this time to handle marketing in the US. The Narayana Murthy-led company went public in 1993 and was hailed as the first Indian company to list on the Nasdaq stock exchange in 1999. Pioneering the Global Delivery model and preserving and nurturing the entrepreneurial itch are some of the main secrets that lie behind the colossal growth of Infosys.

Infosys currently serves clients like Visa, Reebok, Cisco Systems, Nordstrom, Boeing, New York Life, Nortel, GE and more. The biggest market for Infosys is US.

Infosys market capitalisation surpassed the $100 bn (Rs 7 trillion) mark for the first time on August 24, 2021. One of the oldest and the largest software companies in India, Infosys witnessed a surge of 71% of its share values and became the fourth Indian company to record such a feat.

Infosys – Challenges

Infosys had witnessed numerous challenges, which started right from the day it was launched, or even before that if we go by the facts. Infosys started with a sum of Rs 10,000 borrowed from Mrs Sudha Murthy, starting from there to the place where Infosys is now was a path full of hurdles. One of the prominent challenges that Infosys witnessed is when its first Joint venture, KSA- Infosys failed in 1989. This was really a point when Infosys was almost on the brink of collapsing down. This led to the resignation of the Ashok Arora, who was absolutely dejected with the way Infosys progressed.

Mr Gopalkrishna reminiscing the days, said “we had nothing after eight years of trying to bring up a company. Those who studied with us had cars and houses.” With the resignation of Ashok Arora things started to get blurry for the other co-founders as well, but soon Narayana Murthy remarked “if you all want to leave, you can. But I am going to stick (with it) and make it”, which instilled courage in all the other founders of the company.

Infosys – Competitors

The top Infosys competitors are TCS, Wipro and HCL.

TCS is one of the biggest competitors of Infosys. It is headquartered in Mumbai, Maharashtra, India. It was founded in 1968. TCS operates in the IT Services industry.
Wipro is also one of the top competitors of Infosys. It is a public company headquartered in Bangalore, Karnataka, India. It was founded in 1945. It also operates in the IT services industry.
HCL is the top 3rd rival of Infosys. It is headquartered in Noida, Uttar Pradesh, India. The company operates in the IT Services Industry.

Infosys – Future Plans

The company has got plans to hire around 12,000 local US additional workers for various roles by the year 2022. The eye will be especially on experienced technology professionals as well as new graduates from renowned universities and colleges to create a strong platform. This action will be taking place in order to decrease their dependencies on the H-1B visa. This is nothing but a strategy to increase local hiring in the US.

FAQs

What is the full form of Infosys?

The name Infosys is derived from Information Systems.

Who are the founders of Infosys?

The Infosys founders are N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal, Kris Gopalakrishnan, Ashok Arora, N.S. Raghavan and K. Dinesh.

What is the Infosys story?

Infosys is a provider of next-gen digital services with more than 187,000 employees.

August 4, 2021

The Successful Business Model of HDFC Bank

The corporate sector often requires major backing from banks. Private banks have always been front in targeting the blue-chip manufacturing companies in the entire Indian corporate sector. These also target small or mid-sized corporate companies and agricultural businesses.

Private banks offer tons of transactional and banking services such as trade services, cash management, working capital finance, and transactions services. Banks facilitate the structural organization management for cash services where it gets combined with the merchant and the distributor for the smooth working supply chain management, wholly for the corporate customers.

‌‌Private Banks such as HDFC bank have been very upfront in providing the services of cash management and transactional banking system for the corporate customers, stock exchange members, mutual funds and banks. HDFC Bank is India’s largest private sector bank and has always been very promising. In this article, we have discussed the remarkable business model of HDFC bank and how the bank operates. Let’s get started!

About HDFC Bank
‌‌Where are the branches of HDFC Bank established?
Product and Services offered by HDFC Bank
Business Model of HDFC Bank
How does HDFC Bank operate?
FAQ

About HDFC Bank

‌‌HDFC bank is a very promising and secured Indian private banking and financial services company. The company is known as the largest private sector bank by marketing capitalization and assets in India. HDFC Bank was established in 1994, headquartered in Mumbai, Maharashtra, India.

As of 2021, HDFC bank is stated as the third-largest company based on market capitalization in the Indian Stock Exchange market. HDFC bank employs around 120,000 employees in its bank and its branches, this employees count is the thirteenth-largest in India.

‌‌With the chairman Atanu Chakroborty and Sashidhar Jagdishan as the chairman, HDFC bank has grown immensely. HDFC Bank was established as the subsidiary of the Housing Development Finance Corporation. The bank is very promising and satisfactory with its services and has a huge customer base across India.

‌‌Where are the branches of HDFC Bank established?

‌‌HDFC Bank is the first-ever private bank in India to obtain approval from the Reserve Bank of India (RBI). HDFC Bank has grown its network vibrantly and has gained a huge customers base throughout the country. Today, HDFC Bank has established a banking network of over 5608 branches along with 14,897 ATMs in more than 2902 cities and towns.

Product and Services offered by HDFC Bank

‌‌HDFC Bank has always been very promising and satisfactory to its customers. Its top services are retail banking, auto loans, wholesale banking, two-wheeler loans, treasury, consumer durable loan, personal loans, loans against property, credit cards, and lifestyle loans. Moreover, HDFC Bank also offers various digital products including SmartBUY and Payzapp.

Business Model of HDFC Bank

‌‌HDFC Bank, the leading finance company in India has always been guaranteeing and fulfilling its services. The company has a very strong foothold in the market as a finance company. Following the lead, the Industrial Credit and Investment Corporation of India (ICICI) is known to be the second-largest bank in the country.

‌‌HDFC Bank has been revolutionary with its terms of deposits and loan disbursements, which keeps it at the top of the Finance sector market. HDFC Bank runs on a very subtle business model plan where it generates universal banking-based synergies by cross-selling the bank’s products to its subsidiaries across India, without actually incorporating any commodity.

HDFC Bank has gained a huge customer base and enormous finance handling. With its current business model, the bank is up for dozens of more achievements and has become the first-ever most reliable, and exclusive private bank in India, with great customer support.

Deposits of HDFC Bank Limited

How does HDFC Bank operate?

‌‌Banks are considered the safest house for people to conserve their money and funds. With the growing technology, private banks are putting everything in their power to provide the best services to their customers and gain their loyalty.

HDFC Bank operates through various segments such as:

Retail Banking

The bank offers an assorted range of finance products and services to its customers via a developing HDFC branch or its ATM or through various digital channels including Phone Banking, Netbanking, and MobileBanking.

Treasury

Through the Treasury services, the Bank guides businesses in generating great outcomes on their funding and financial management risk. Treasury includes the product services of the local currency market and debt securities, foreign derivatives and exchange, and capitals.

Wholesale Banking

The bank offers a broad gamut of transactional and commercial banking services to various businesses and organizations regardless of their size. These services are trade services, cash management, working capital finance, and transactional services.

Conclusion‌‌

HDFC Bank has provided tons of promising services to its customers. Being a private bank, the company has earned absolute trust from its customers and gained a huge customer base throughout the country.

The bank engages with various financial and banking services such as Treasury operations and commercial banking. HDFC Bank facilitates the banking services of various upper and middle-income people and organizations across India. The bank has a very strong position in the market and is considered the most reliable and reasonable private bank in India, later followed by ICICI bank.

HDFC bank follows a pretty bold as well as a subtle business model which has brought tremendous growth and development to the bank and its services.

FAQ

What is the revenue of HDFC Bank?

The revenue of HDFC Bank is 1.56 lakh crores INR in 2020.

Who is the CEO of HDFC Bank?

Sashidhar Jagdishan is the current CEO of HDFC Bank.

Is HDFC a foreign bank?

No, HDFC Bank is an Indian banking company.

July 30, 2021
Business Model of DMart | Why is DMart Successful than other retailers

In an era where everybody seems to become a successful entrepreneur, it is the aptness of a business model that makes all the difference. The company should be able to realise the nature of their target customer to make the best out of the situation.

Today the retail business is a very popular form of business among consumers. Here the company sell goods and services at a very low price through large distribution channels. In this form of business, a prompt understanding of the nature of customers is the most important.

DMart is one such important player in the retail industry which has successfully garnered a top position despite being a latecomer. There is absolutely no doubt that it is the unique business model of DMart that helped it to have an excellent debut in the industry.

About DMart
What makes DMart unique?
Slow and Steady Wins the Race
FAQ

About DMart

DMart is a supermarket chain that is spread across 12 states in India. It is owned by Avenue supermarkets and was founded by Radhakishan Damani who is one of the most famous and successful value investors of the country, in the year 2000. It started with two stores in Maharashtra and is now a large chain of 176 stores that are spread across 12 states in India as of 2020.

In the year 2017, the company went public with an IPO of Rs 1870 crore. DMart got listed at the price of Rs.632 and as of 15 July 2021 its average trade price is Rs.3316. The shares of the company have grown more than 60% in just four years.

It is the sheer understanding of RK Damani about the market condition, the nature of the customers and the ability to have a very cordial relationship with the vendors that helped him and his company to get to the place that it is in now. He was successfully able to maintain a healthy attitude amongst the investors by adopting a very strong business model that ensured a healthy Return on Equity.

Revenue of DMart across India

What makes DMart unique?

As mentioned earlier the uniqueness of DMart’s business model has helped the company flourish phenomenally to become one of the most profitable supermarket chains in the whole of India.

Business to Consumer Model

Those who have gone to DMart will be aware of the extremely low price of the products available. This is because of the business to consumer model that it has adopted. Here as the name suggests, Products are directly taken from the producers or the manufacturers and given to the end-user.

Another reason why this method is successful is because of the nature of these goods. Most of them are things that we need on a day to day basis and hence the demand is consistent. It gives a lot of stability to the business as a whole.

Cost Involvement and Utilisation

It is well-known that any company will have to incur certain expenses for the smooth conduct of businesses. These include the cost of the location, salaries of the employees, expenses related to maintenance et cetera.

DMart has efficiently crafted its business model in such a way that it finds opportunity in these expenses as well. Most of its stores are built on their own land which reduces their expense of rent and leases immediately. The rents being one of the highest costs for any retailer, its ability to open stores on their own land saves the firm from that obligation.

There are absolutely no middlemen in the business of DMart. It ensures that they get the product for the best price and is directly given to the end-user which further helps them save a lot of money given as commission to these middlemen.

Unlike most of the retail stores, DMart pays their suppliers within just 10 days instead of the usual 60 days. This not only makes DMart a special customer to the suppliers but also gives it more power for negotiation.

Apart from that most of the employees are hired on contract. They are constantly trained for skill development and multitasking which saves the cost for DMart with regard to additional employment. This training ensures that the stores can be run smoothly with the existing number of employees.

An efficient relationship with suppliers is a very important part of the retail business and RK Damani has aced this task too well. Due to his excellent relations with the vendors and suppliers since the beginning of the business, he is able to maintain an extremely efficient supply chain that helps him constantly restock their inventory on time.

Knowing the Customer

One of the most successful marketing strategies of DMart is its discounts and customers. There is absolutely no doubt that DMart thrives through word of mouth marketing. It is its best advertisement. Their discounts are ever-increasing and endless. Along with that, they have an inexhaustible availability of products which makes them a favourite choice among the middle class.

The strategies of DMart is close-knitted with the innate nature of a common Indian who always looks out for the best price and is ready for a good bargain. RK Damani knowing the pulse of the customers successfully curated DMart’s business strategy in a way that suits both the customer and his business.

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Slow and Steady Wins the Race

Despite all the discounts and low prices, DMart continues to earn profits of more than 9 billion per year. They have never incurred losses in any of their stores since its inception 20 years ago. This is mainly because RK Damani and his team believe in moving slow.

Unlike other competitors in the industry like Reliance retail whose expansion rate is over 714 stores every year, DMart opens less than 10 stores every year. They focus more on value retailing. Although the expansion of the stores in terms of number might look slow, there is no doubt about the survivability of the business in the long run.

With their very focused vision and a carefully curated network of supply chain and engagement, there is absolutely no doubt that DMart will continue to flourish in the market in the coming years as well. The success of DMart is an example of the fact that being lean in business can also help you be successful and survive even in the harshest of market environments.

FAQ

What is the revenue of DMart?

The revenue of DMart is 24,930 crores INR as of 2020.

Who is the founder of DMart

DMart was founded by Radhakishan Damani in 2002.

Is DMart an Indian company?

Yes, DMart is an Indian company founded by Radhakishan Damani and is owned by Avenue supermarkets.

July 25, 2021
Uber Business model: A Deep Dive into the Strategy and Innovation of Uber
Did you know 17% of small businesses fail because they lack a business model? Entrepreneurs now are the time to learn about this amazing business model canvas, which will make that stress go away. Here, I have taken the real-life example of Uber for this business model canvas.

About Uber
Uber statistics in 2021
Uber’s Business model canvas
FAQ

Brief introduction of Business model canvas

A lean canvas and a value proposition are two sorts of business models. These are tools for validating company concepts geared for startups. Both originate from Alexander Osterwalder’s ‘business model canvas,’ which we’ll explore today.

The primary distinction between the business model canvas and the lean canvas is that the business model canvas was developed for well-established businesses to track their efficiency and evolution through time. Startups are the most common users of lean Canvas for product launches.

The business model canvas is popular among entrepreneurs. It’s a risk-detection tool that’s adaptable, intuitive, and value-driven. That’s why it’s commonly referred to as a one-page business plan. The canvas is divided into nine areas, each of which must be filled with specific company information.

About Uber

In the business realm, Uber is a well-known name. Millions of business owners and entrepreneurs have been motivated by extraordinary success, and the trend is expected to continue. This California-based ride-hailing service, which was founded in 2009, has ushered in a huge change by igniting the on-demand economy.

From its humble beginnings, it has come a long way from a basic idea of allowing customers to hail a cab with a single tap to being the world’s largest ride-sharing firm. Uber currently controls over 68% of the total ridesharing market in the United States.

Uber statistics in 2021

According to statistics, Uber undertakes around 1.44 billion rides each quarter. Uber has raised $25.2 billion in fundraising, has over 100 million active customers, 4 million Uber drivers, and a net worth of $95.67 billion. So far, Uber’s success has inspired millions of business owners and entrepreneurs.

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Uber’s Business model canvas

The aggregator business model was first introduced to the world by Uber. It operates on a multi-sided platform business strategy that serves as a link between riders and drivers. Simply put, Uber has a two-pronged business model. While it enables clients to hire a taxi with a simple click, it also enables cab drivers to complete their rides on time and safely.

Customer segments

You must determine your most significant customer to whom you are providing value. The persona method aids in the creation of an imaginative portrayal of user categories. There are two types of Uber users: drivers and riders. Each one caters to a specific group of people that are interested in what Uber has to offer.

The first group i.e. drivers are:
- Full-time job seekers
- Generate extra income
- Love to drive
- Looking for a flexible work environment
The second group i.e. Users are:
- Don’t own cars
- Don’t know how to drive
- Looking for comfort & luxury
- Looking for cost-effective transportation services
- Taxi haters
- Travelers in a foreign place
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Value proposition

Each persona has unique challenges or prerequisites that your product or service can address, and you must specify these in the value proposition section. List as many jobs as feasible that correspond to the needs of your target customer segments.

For drivers, it’s the ability to work flexible hours and earn more money, while for passengers, it’s the ability to pay with credit cards and cheaper prices. Decompose this part into specific chores to be done, customer pains and gains, and relate them to your product value using the value proposition canvas.

Value proposition or benefits Uber offers are:

To drivers:
- Ease in getting started
- Opportunity to earn
- Ease in accessing more passengers
- Flexible working schedules
- Get paid online
To customers:
- Minimum waiting time
- Reduced transportation costs
- Cashless rides
- Safety & security
- Upfront pricing
Channel

The communication unit that entrepreneurs use to contact customer segments is referred to as a channel. If you offer your products through a website, that is one of your business model canvas channels. Search engines, social media, and even word-of-mouth marketing are examples of this.

Uber’s channels include:
- Website
- Smartphone app (android & IOS)
- Social media
- Google Adwords
- Media coverage
- Word of mouth
Relationship with customers

The way you interact with customers is defined in this section. Customer interactions included follow-up and feedback after the sale. If you connect with users through a call center or a Chabot, specify it here.

Uber maintains its customer relationship through:
- Social media
- Customer support
- Rating, reviews & feedback system
Revenue streams

You must define the methods by which your company obtains funds in the revenue streams section. They’re usually derived from customer segmentation and value proposition mapping. Uber passengers, for example, use their credit cards to pay for their rides. Uber makes money by charging a commission for each ride. Other revenue streams could include billable add-ons, subscriptions, premium accounts, and so on.

Uber’s revenue streams are:
- Car rides per km/mile basis
- Surge pricing
- Brands like Uber X, SUV, etc.
- Divisions like Uber Eats, etc.
- Advertising & marketing
Key activities

Now comes the difficult part, key activities cover everything you need to do to make your company work with digital products. This entails continuous product development and marketing. Recruiting, advertising and other such activities are part of these operations.

If you provide certain services, this may include information that can help you improve your capabilities. When filling the key activities portion of the business model canvas, keep in mind the other sections you’ve already completed.

Uber’s key activities are:
- Platform development & enhancement
- Marketing & customer acquisition
- Sales promotion
- Hiring drivers
- Customer support
- Manage driver payouts
- Communicate with customers, drivers
Key resources

The assets you require to run your organization at max potential are known as key sources. Uber is based on a sophisticated technological platform. It also needs drivers to support its value proposition. Staff and expertise are heavily relied upon by service-oriented businesses.

Uber’s key resources include:
- Network of drivers & riders
- Digital platform (website & apps)
- Technology talent
- Advanced Algorithms & Data Analysis
- Brand image
Key partners

You must define any external stakeholders who can contribute to your business in the key partner section. The development of tech platforms can be driven by Uber investors. Drivers can be hired with the help of recruiting partners.

Uber’s key partners are:
- Drivers
- Investors & venture capitalists
- Technology partners
- Commercial partners
- Payment processors
- Map API providers
- Lobbyists
Cost structures

You should be able to tell what you spend your money on based on your cost structures. If your enterprise grows, you must also mention future costs. This area includes expenses such as hardware procurement, software development, and rental services.

Attributes that make the cost structure of Uber are:
- Customer acquisition costs
- Legal & settlement costs
- Insurance costs
- Research & development
- Lobbying & compliance
- Platform maintenance
- Infrastructure cost
- Customer support
After you’ve created your business model canvas, the next step is to analyze it. You have a comprehensive view of what’s going on in your company and can spot bottlenecks. Make sure to share it with stakeholders so that the content may be improved. Also, don’t cling to the canvas’s original version as it is a flexible document.

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Final thoughts

Uber, like other successful startups, did not become well-known overnight. Their success may be traced back to greater business model innovation, which provides clients with better services at reduced prices. Almost everyone appreciates the services they provide. Uber has transformed mobility for billions of people across the world by arriving on time, conveniently, and safely.

FAQ

Who is the founder of Uber?

Travis Kalanick and Garrett Camp founded Uber in 2009.

Who is the CEO of Uber?

Dara Khosrowshahi is the current CEO of Uber

What is the revenue of Uber?

The revenue of Uber was 1,113.9 crores USD in 2020.
July 24, 2021
Business Model of Patanjali
When it’s Ayurvedics products, no one can beat Patanjali. The widely famous Indian consumer goods brand, Patanjali is known to be very promising to the Indians. Patanjali was founded by Baba Ramdev, who is considered the yoga icon, along with Acharya Balkrishna.

Patanjali provides the manufacturing, distributing, and selling of incredible Indian household products. The most prominent thing about Patanjali products is that they are considered entirely natural, using the conventional methods of producing household products. Patanjali offers various consumer goods, minerals, herbal products, and Ayurvedic medicines.

The company was founded in 2006 with an official registered office in Delhi, India. The company’s headquarter is established in Haridwar, Uttarakhand. Patanjali utilizes the best technological method together with conventional prescriptions of Ayurveda and produces absolutely promising and natural products. In this article, we will be discussing the most remarkable business model of Patanjali and its revenue generation methods. Let’s get started!

About Patanjali
Where does Patanjali operate?
Key products of Patanjali
Target Audience of Patanjali
Business Model of Patanjali
What is unique about the Business Model of Patanjali?
How does Patanjali make money?
FAQ

About Patanjali

Patanjali is known to be India’s multinational consumer products manufacturing company, headquartered in Haridwar, Uttarakhand, India. The company was established by Baba Ramdev and Acharya Balkrishna in the year 2006.

Patanjali produces various household products including cosmetics, Ayurvedic medicines, and food products. Patanjali serves various other countries, especially in the middle east and other Indian subcontinents.

Patanjali is known to be the fastest-growing FMCG company across India. As of 2019, the estimated valuation of Patanjali was around $35 billion (Rs. 3,000 crores). The annual turnover of the company is around Rs. 10,216 crores.

With the incredible success of the Patanjali brand, various companies like Colgate, Godrej Consumer, ITC and others, are majorly affected in the market. Patanjali has experienced some very remarkable developments in the market and gained a huge loyal customer base.

Where does Patanjali operate?

The official registered office of Patanjali is established in Delhi, whereas its headquarters is in the industrial areas of Haridwar, Uttarakhand. The company serves many foreign countries as well, especially in the Middle East and the subcontinent of India.

Patanjali has been remarkable with its products and services that’s why the company is growing more immensely towards its expansion in other countries.

Key products of Patanjali

Patanjali manufactures dozens of household products, categorizes them in various segments such as cosmetics, food products, personal care, beverages, and Ayurvedic medicines.

Later in 2018, the company expanded its hands and took over the manufacturing of clothes also. It even opened a store for clothing in Delhi under the brand name, Patanjali Paridhan.

Patanjali Paridhan Store

Patanjali VS Baidyanath | Case Study | Success Comparison

Patanjali vs. Baidyanath – A Case Study. Read to know Which is Better and Why? Comparison Between Baidyanath and Patanjali and Business Model.

StartupTalkyYash Taneja

Target Audience of Patanjali

Patanjali entirely focuses on targeting an immense Indian audience. The company provides goods at very low pricing and the influence of Baba Ramdev over the general public, promotes the Patanjali brand more vibrantly. Patanjali targets its audience entirely, without any sub-categories.

Business Model of Patanjali

The business model of Patanjali is based on the FMCG model. The company manufactures herbal and minerals based products and sells them in the market at some very affordable prices. Patanjali holds a huge network with people in its yoga and Ayurveda sector.

The Yoga sector has around 5 lakh branches and 5 lakh mentors in them for its Patanjali Yoga Samiti. Along with this, Patanjali’s consumer goods company gains immense profit. Patanjali has always been upfront for promoting and guiding people for yoga, it even organizes yoga-based camps across the country. Its Yoga network is pretty huge, which brings out great benefits to the goods brand.

Patanjali Yoga Camp

Patanjali’s business model is quite similar to the other FMCG-based companies, where they manufacture the products and sell them. But in comparison to other FMCG companies, Patanjali has experienced incredible growth.

Patanjali has made some remarkable marketing strategies that bring out great outcomes. Now, as we got the idea of Patanjali’s business model. Let’s move forward to how this business model is beneficial and unique for the company.

What is unique about the Business Model of Patanjali?

The most significant thing about Patanjali consumer goods company is that the company is built to provide quality to the customer and not engage with the burden of profit. Patanjali offers products at a very low price as compared to any other FMCG company. The company manufactures its products with the accurate raw materials obtained from the farmers in order to minimize the production cost.

The distributors and the retailers find very low profit through Patanjali products. That’s why Patanjali establishes its retail outlets in various cities and towns.

Patanjali sells products from all categories under just one brand, this saves the extra promotion and advertisements cost.

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Revenue of Patanjali Ayurveda across India

How does Patanjali make money?

As being an FMCG company, Patanjali also manufactures the product and sells them. But aside from this, Patanjali has a huge loyal customer base with great marketing strategies in hand.

Patanjali increases its sales and revenue through the means of credible existence in the target base. Patanjali sells its products at some pretty low prices that bring out more reach and sales for the company.

Patanjali holds a very effective revenue generation method through its huge loyal customers base along with an absolutely affordable cost structure, obtaining various marketing tactics. Moreover, the company includes several distribution strategies including:
1. Patanjali Chikitsalaya: Doctors checkup the health of patients without any charge and recommend Patanjali’s Ayurvedic medicine.
2. Swadeshi Kendra: The outlets of Patanjali where you can find all the household and non-medicine products.
3. Patanjali Arogya Kendra: Yoga experts guides for yoga exercises and fitness tips and training for the customers. Also, they suggest various Ayurvedic medicines.
Conclusion

Patanjali is a remarkable FMCG-based company that manufactures incredible household products with great quality at very reasonable pricing. Patanjali prioritizes quality at the top and with such a huge loyal customer base, the company receives great outcomes. Patanjali has been in the market for over 15 years and in these years, the company has experienced incredible success and growth graph. And with time, the company is all set to achieve more heights.

FAQ

What is the revenue of Patanjali?

The revenue of Patanjali is 30,000 crores INR in 2021.

Who is the CEO of Patanjali?

Acharya Balkrishna is the CEO of Patanjali.

When was Patanjali founded?

Patanjali was founded on January 2006 by Ramdev and Balkrishna.
July 23, 2021
The Intriguing Psychology Behind the Business Model of Banks

Nowadays we all have a bank account. This might sound a bit awkward but there are people out there who don’t have one. Try to remember how long did it took to open a bank account? Probably a couple of hours or weeks in some cases.

Do we know what happens with our money? Nobody knows. Because once you deposit, it’s not yours anymore it becomes the bank’s money. Banks just aggregates all that capital and invests or loans it out. Your account balance is just a number in the bank’s ledger. Whenever you make a transaction, banks instruct the ledger to move to the second person.

Before I go into detail, let us first look at the brief history of the banking system:

The dawn of the banking system
Business model of Banks
How do Banks earn Revenue?
How do Banks generate revenue now?
Current scenario of Banks
FAQ

The dawn of the banking system

Banking may appear complex now, yet it was created to make life easier. Italy was the epicenter of European trade in the 11th century. Merchants from across the continent intended to trade their goods, but there was one concern: there were too many currencies in circulation.

Merchants in Pisa had to cope with seven distinct types of coins and often exchange their money. The word bank comes from the Italian word “banco,” which means “bench.” This exchange transaction often was conducted outside on benches.

People were concerned about the perils of going with counterfeit money and the difficulty of getting alone. It was time for a change: home brokers began extending loans to entrepreneurs, and Genovese shoes pioneered cashless transactions. Bank networks were strewn across Europe, extending credit to the church and European rulers.

Business model of Banks

When it comes to building a value proposition, banks face a unique challenge since they must encourage clients to trust them with their money while also making them feel like they are getting the best value for their money. Once consumers have invested with a bank, the bank must endeavor to retain them and persuade them to purchase more products.

Their business model is customer-centric meaning being consistently striven for and develop an excellent reputation for transparency, trust, integrity, and being responsive to customer needs. They offer financial products and advice that is aligned with your financial goals. Their emphasis on corporate governance and CSR initiatives is something to look forward to as their entire business model is based on the services they offer.

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How do Banks earn Revenue?

Interest from loans:

Let’s imagine ten people each put $100 million into a bank. The Reserve Bank of India (RBI) has now imposed two restrictions, namely, SLR and CRR. In essence, the CRR (cash reserve ratio) is a modest percentage (4%) of the entire deposit under RBI’s jurisdiction. The statutory liquidity ratio (SLR) is the proportion (19.5%) of the amount deposited that you keep or invest in liquid assets such as cash, gold, or government securities, among other things.

The RBI imposes certain restrictions to protect your funds. The remaining 76.5 percent of the entire sum is offered to you as loans. In summary, banks make loans at a rate of 12 percent interest from the 76.5 percent, and those who deposit $100 million will receive a 4 percent return, leaving the bank with an 8 percent profit. This circulation of money is also known as a fractional reserve requirement.

Interchange fees:

When you pay for things, let’s take an example of a supermarket like D-mart with a debit or credit card, D-mart receives the money first. A tiny percentage of the proceeds is subsequently distributed to merchant banks, from which D-mart purchased their card swipe machine. The merchant banks keep a portion of the money and then transfer the balance to your account. These are known as interchange fees.

Service fees:

It is the fees imposed by banks for services such as locker (for holding gold), NEFT/RTGS, debit/credit card, internet banking, and Demat account.

Charging fees:

Low bank balances, lost debit/credit cards reissued, cheque bounces, overdrafts, and transaction fees (if you withdraw 4 or 5 times a month from an ATM) all result in banks charging fees.

Insurance & Mutual funds:

Typically, banks sell insurance plans on behalf of firms, such as life insurance, health insurance, and automobile insurance, for a commission. They also distribute mutual funds and are compensated by fund houses.

Trading in the financial market:

Most banks, particularly investment banks, are listed on the stock exchange, which provides them with an additional source of revenue. They also profit from foreign currency exchange, which means they buy a currency when the rate falls and sell it when the rate rises. They invest in the bond and commodity markets and profit from them as well.

Investment advice:

Investment banks charge high fees for the advice they give to corporations or public institutions when it comes to issuing bonds or shares.

How do Banks generate revenue now?

Banks are involved in risk management. People deposit their money in banks and get a nominal interest. This money is taken by the bank and lent out at substantially higher interest rates. It is a calculated risk as some people might default on repayment. This process is critical to our economy because it offers resources for people to purchase items like houses and for businesses to expand and grow. As a result, banks take money that savers aren’t using and turn it into money that society can use.

The main issue with banks today is that many of them have abandoned their original position as long-term financial product suppliers in favor of short-term rewards that come with far larger risks.

During the financial boom, most big banks created complex financial structures and conducted their trading to make quick money and reward their executives and traders millions in bonuses.

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Current scenario of Banks

Other forms of funding are rapidly gaining traction today. They are:

New investment banks

New investment banks charge a yearly fee and do not receive commissions on sales, giving them an incentive to operate in their clients’ best interests.

Credit union systems

To avoid credit sharks, credit unions were founded in the nineteenth century as cooperative efforts. In short, they prioritize shared value over profitability. The mission is to assist members in establishing small enterprises, expanding farms, and building family homes while also investing in the community. Their members are in charge, and the board of directors is democratically elected.

Worldwide Credit unions range in size from a few hundred members to multibillion-dollar corporations with tens of thousands of members. Credit unions’ emphasis on member benefits influences the level of risk they are willing to take, which explains why, despite their difficulties, credit unions fared better than traditional banks during the recent financial crisis.

Crowdfunding

Not to mention the recent boom of crowdfunding. Aside from making fantastic video games feasible, platforms evolved that allow people to obtain loans from large groups of smaller investors without having to go into a bank. But it also works in the business world.

On Kickstarter or Indiegogo, a lot of innovative technology startups emerged. The funding individual gains the joy of being a part of something bigger, and they may invest tonight as they believe in while spreading the risk so evenly that the damage is minimal if the project fails.

Microcredits

Last but not least, there are microcredits. In developing countries, many extremely small loans that help people transcend poverty were met with skepticism. People who previously couldn’t receive the funds they needed to establish a business because they weren’t thought to be worth the time. Microcredit lending has grown into a multibillion-dollar industry.

Final Thoughts

While banking may not be your cup of tea, the role of banks in providing funds to individuals and businesses is critical to our society and must be carried out.

That’s all for today, folks.

FAQ

What is the main business model of a commercial bank?

Commercial banks make money by providing and earning interest from loans such as auto loans, business loans, and personal loans.

How do banks make their money?

Banks make money from service charges and they also earn money from interest they earn by lending out money to other clients.

What is the largest source of revenue for banks?

One of the largest sources of revenue for banks is interest received from customers who take loans.

July 23, 2021
An Insight into the Business model of Quora
Quora is a very popular question and answer platform that has evolved much before voice assistants and artificial intelligence developed into becoming a very common feature. Sustained and developed by real humans who answers the questions raised, Quora is indeed a unique one in the industry.

This Q&A platform was launched by Adam D’Angelo and Charlie Cheever in 2009. They were former Facebook employees. Initially, it had no revenue until 2014. But today this social media network that flourishes with questions and answers have an estimated value of $2 billion.

With an aim to have a three-digit growth rate, the sole motive of Quora is to generate high-quality answers to the questions that are asked by its users who run into millions. Over the years Quora has become a very reliable platform for getting answers regarding almost all the niches that exist. In this article, a glimpse of Quora’s business model will be looked into.

About Quora
Key Partners of Quora
Key Activities of Quora
Resources of Quora
Business Model of Quora
What is unique about the Business Model of Quora
What is the Source of Revenue of Quora?
FAQ

About Quora

When it was launched in 2009 it had no particular revenue earning source. However, its prevalence in the industry started to increase over the years and it subsequently got around $226 million from four funding rounds that were inclusive of 14 investors in 2014. As of 2018, it has reported $8 million in revenue and more than 300 million unique monthly visitors in 2020.

Key Partners of Quora
- Top Writers
- Users
- Media Platforms
- Investors
- Publishers
- Online Businesses
Key Activities of Quora

The most important activity in Quora is answering questions posted by its users. The platform demarcates each question based on the topics. These umbrella topics are known as spaces and the users will get a chance to choose their space.

Quora also categorises the feed in a very personalised manner depending on the interest and activities of the user in the platform. Various companies find it as a great opportunity to share their stand in a very detailed manner through these answers.

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Resources of Quora

Its major resource is its user base. They have a very enthusiastic community that asks questions and answers them. They have been funded by many investors through various stages of funding.

One such popular funding which changes the game of Quora was that of 2014. As it further expanded to being a platform that promoted advertisements, companies that wanted to promote their products and services became a very important resource.

Business Model of Quora

Its very friendly user interface and educated consumer base have significantly helped in improving activities in Quora. Apart from random questions and answers it also allows business profiles to start accounts and make use of promoted answers.

As mentioned earlier apart from the benefit of getting a platform to share their stand, they are also allowed to promote their brand in such a way that their answers come first. However, it is not in a dangerous manner. The users also have the right to like, upvote and comment on answers which will increase their reach and credibility.

The reason Quora been very popular even after a long time since its launch is because of its wide audience base. It does not have a particular age group as the target audience. Their services are solely dependent on the interest of the user and customise their experiences accordingly.

What is unique about the Business Model of Quora

A unique factor about the business model is that one can observe a blend of both Facebook and Google in their methodology. It is similar to the models of Facebook because it allows you to afford like and comment on questions just like Facebook does and the similarity with Google is because of its mechanism to rank answers and the usage of algorithms. Like them, Quora also makes money through advertisements.

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What is the Source of Revenue of Quora?

They have text and image ads with which they began their advertising journey. It is one of the most used ad formats since it goes very well with the structure and texture of the answers. They make sure that their ads go along with the content that the user is reading.

Ads on Quora

A person who is following a particular Space will be shown ads that are relevant to that topic. However, it may not be the case always. Many ads are also staged on this platform to increase the web traffic to their place.

They charge for these ads in three different ways. The first one is CPA which is also known as Cost Per Action. Secondly, to get more conversions, they have another advertising strategy called CPC also known as Cost Per Click is made available for those who wants to get more traffic into the landing pages. Another one is CPM, which is the cost per thousand impressions. It targets those people who want increased impressions on their ads.

Conclusion

The factor that drew Quora to such greater heights and wide popularity is because of their vision to democratise knowledge in a way that is accessible to all. It is also completely crowdsourced and it thrives entirely on its user community. It is this mentality to share and grow that made Quora a social networking platform, a search engine and a very strong community that is as competent as Google simultaneously.

One thing is sure from the business model of Quora, that it will continue to grow in future as well. This is mainly because of the fact that no technology can ever replace the uniqueness and capability of human beings. It is definitely an important takeaway from Quora to believe in yourself and understand that you are irreplaceable.

FAQ

Who is the founder of Quora?

Quora is a question-and-answer website founded by Adam D’Angelo, Charlie Cheever in 2009.

Is Quora owned by Google?

No, Quora is a privately held company.

How many visitors does Quora have?

Quora has around 300 million unique monthly visitors as of 2020.
July 22, 2021
How does Pinterest makes money – Business & Revenue Model of Pinterest
The social media sphere is quite growing with multiple social media platforms and their popularity. Among this sphere, lately, a San Francisco based Pinterest which is a CA tech company famous for its huge collection of photos for all occasions and styles.

Pinterest is basically a pinboard-style photo-sharing platform. You can create your collection of photos and also, manage theme-based photos of events, hobbies and many others.

Pinterest was founded in 2008 but went public through an initial public offering held in 2019. Through this, the stock trades on New York City exchange under the PINS symbol.

Today, there are around 100 million active users of Pinterest with a reported value worth $11 billion. But, with the growing speed, the question arises how does Pinterest make money? This has been a question since the beginning of Pinterest. The Business model of Pinterest has been designed very strategically in order to capitalise on the networking effect.

Pinterest launched its revenue model titled ‘the promoted pins’ in 2013 which is available in the beta stage. The revenue model of Pinterest is based on advertisement and has been growing more vigorously. In this article, we have discussed the business model and Revenue model of Pinterest. Stay tuned!

Pinterest Business Model
How does Pinterest make money?
Revenue Monetisation Models of Pinterest
Objectives of Monetisation Models
How Pinterest is proven a better Social Network for Businesses?
FAQ

Pinterest Business Model

Initially, Pinterest was based on a web social catalogue model. However, later the company recognized the advantages that come with a social media networking site which includes pinboards and pins. This would allow the user to choose their pin according to their interests.

Therefore, now Pinterest holds all the possible options that come with a social media platform such as catalogue, E-Commerce, social networking features, and content facets.

Similar to Facebook and Instagram revenue models, Pinterest has also developed its revenue model based on the advertisement, which brings benefits for the user while visiting the website. Pinterest holds all the capability and potential to gain its utmost success. Although it’s still awaiting utilising its total sources. But who knows, Pinterest could become the most successful social media site.

As we discussed the strategic business model of Pinterest, let’s move towards how the company makes money.

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How does Pinterest make money?

When Pinterest was launched, it didn’t have any source of revenue. Later in 2013, it launched its new advanced feature – the promoted pins. This came out to be a huge success and a solid source of revenue.

The promoted pins are the advertisements shaped in the form of pins on the search results, dashboard and other areas of Pinterest which are endorsed by some specified sponsor and can redirect to the sponsor’s website.

Promoted Pins

The promoted pins feature is similar to the promoted content features available on other social media platforms. These are user-targeted. Hence, it benefits the user as well as the advertiser.

The reach by the users depends on the bids made by the sponsor and the bids depends on the targeted user’s interests and other demographic facts.

Revenue Monetisation Models of Pinterest

Pinterest uses the widely preferred digital monetization models for better revenue return. These are:
- Cost per Click (CPC)
- Cost per thousand impressions (CPM)
- Cost per View (CPV)
- Cost per action (CPA)
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Objectives of Monetisation Models

The Monetisation Models are used according to the favourable campaigns. There are various Monetisation Models and each of them is applied to different advertising campaigns based on their objectives. Such as:
- Video View
- Conversion
- Brand Awareness
- Shopping Catalogue
- App Install
- Traffic
According to the estimated data of 2019, two-third of the total revenue comes from performance advertisements. Each ad holds several prospects, some aimed for conversion of sales, signing up, app installation, trial or other discrete actions. Meanwhile, one-third of revenue is obtained from brand ads.

How Pinterest is proven a better Social Network for Businesses?

Pinterest holds a huge collection of theme-based catalogues that can be saved and used by users according to their preferences. This has created an opening for advertisers and marketers to promote their business.

The other social media networks connect people on a global level but when it comes to Pinterest, it connects people to their interest-based content. That’s why Pinterest has a better click-through rate on various conversions and advertisements.

Around the globe, tons of people are active users of Pinterest in the last 6 months, among which 96% use it for research and gain knowledge. 93% report that they prefer Pinterest for planning their finances and 87% use it as an engagement that helps them to decide what to purchase.

Today, Pinterest is proven to be the fastest-growing platform through its complete member expansion. Social media such as Facebook and WhatsApp gathers only a single-digit growth rate, however, Pinterest has received more than 50% of growth rate.

Conclusion

Pinterest is a unique way to share photos. Photos sharing through social media has been a meteoric rise for the past decade. Pinterest has been proven a very exciting social media platform that monetizes its website by selling digital advertisements in a distinct targeted manner.

Unlike Twitter and Facebook, it offers the user the opportunity and platform to plan their future projects. The user can browse abundances of fascinating and unique content based on new information. It is more of a search engine.

The San Francisco based company allows users to share their photos and videos. Pinterest has obtained a very unique and strategic business model and in upcoming years, it is estimated to grow more heights of success.

FAQ

What is the annual revenue of Pinterest?

The annual revenue of Pinterest was $1.6 billion in 2020.

Who is the CEO of Pinterest?

Ben Silbermann is the CEO of Pinterest who has a net worth of $1.5 billion.

How does Pinterest make money?

Pinterest’s primary source of revenue is promoted pins. These special pins are effectively advertisements, paid for by identified sponsors.
July 13, 2021
How Does Netflix makes money – Business model of Netflix
What comes to your mind when you think of the best web series? YES, your guess is absolutely right! It’s Netflix that comes to our mind whenever we think of watching fascinating web series or movies. Netflix is our first choice above all. Streaming through Netflix is very convenient and has gained enormous popularity among users in a very short duration of time.

And when it comes to the Business model, Netflix fits best for the example of the company that has modified its business model dozens of times and received terrific success and fame.

Netflix was started as a business company that rents boxed products through mail services to its customers worldwide. And now, the company is providing on-demand entertainment to its users in order to meet global needs.

Few decades prior, Netflix launched its unscripted genre along with various English language formats. This was a great success because of the light-hearted cooking competition. The company also launched local versions in Mexico, Spain, France and Germany. After the success of this notion, Netflix provided other versions too based on the user’s convenience.

About Netflix
Where does Netflix operate?
Key Services of Netflix
Target Audience of Netflix
Business Model of Netflix
What is Unique about the Netflix Business Model?
How does Netflix Make Money?
FAQ

About Netflix

Netflix is counted among the most successful entertainment mass-media companies. The company was founded in 1998 with a service of renting boxed copies of shows, movies, video games and other forms of entertainment, via standard mail services to its customers.

The startup was a great success, then the founders thought of taking it to the next level by introducing tons of advanced technologies. And that’s how Netflix modifies its business model. The company went from mailing boxed copies to providing access to its customers for streaming their favourite content at their utmost convenience.

Today, Netflix holds the most advanced video streaming services that have brought major advantages to its business model and revenue. The company has developed a software application through which under subscription packages of different ranges, they allow the users to stream any content they want. Netflix is known to be the world’s 9th largest internet-based company by revenue.

Where does Netflix operate?

Netflix is a subscription-based video streaming platform, which as of 2021, have over 208 million subscribers. Among which 74 million are from the United States and Canada. Netflix is served worldwide excluding some restricted places such as Syria, Mainland China, North Korea, Crimea. The restrictions are because of US sanctions.

Key Services of Netflix

Netflix provides some very intriguing customer services. But the most exclusive ones are video streaming and on-demand video (Watch Now) streaming services. When these streaming services were launched, they allowed the subscribers to stream one dollar spend per hour, on the monthly subscription. Later in 2008, this was modified and the subscribers were allowed to stream unlimited with no further charge.

In 2016, Netflix introduced the online streaming feature. This allowed subscribers to save up the media on their devices (Android and iOS) in high quality to watch even without an internet connection. Moreover, it also brought Netflix Party Services where people could watch Netflix’s programs together.

In 2018, Netflix introduced the “Skip Intro” feature which allows the subscriber to skip the intros of the show while streaming. Then in March 2021, Netflix launched a feature that warns the user for sharing their account passwords with others.

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Target Audience of Netflix

Netflix is known as the world’s leading online television platform which crosses the hundred million members count in over 190 countries.

Netflix mainly targets the males and females of the age group of 17-60 along with an income value of $30,000 or more. The targeting in Netflix is based on psychographics but not on demographics.

Business Model of Netflix

The business model of Netflix is based on subscription packages. The Netflix platform is developed to please the audience across the globe and that’s why the catalogue covers hold different assortments of movies, web series and shows of all genres, preferable for all ages. Netflix’s value proposition is entirely based on its on-demand service whenever you want. It shows high-quality videos and distinct variety.

Netflix offers the best video streaming experience to its users. Along with the technology investment, the company also prioritizes the content offerings. It analyzes its customer’s behaviour and provides them with a personalized experience.

When Netflix was started, it didn’t have a prominent cost structure which resulted in poor cash flow. But they improvised this issue as the new business model demanded a big investment value. Today, The company’s big cash flow includes:
- purchasing content and rights,
- recommending through AI,
- producing shows,
- Amazon AWS and technology,
- data centres for streaming content
Revenue generated by Netflix

What is Unique about the Netflix Business Model?

Netflix business model is proven to be one of the most successful business models across the globe. But here the question arises, What’s so unique about the business model of Netflix? Well, it’s the on-demand video subscription model or SVOD model. In this model, the subscribers pay to get access to the media content of Netflix on a monthly basis. Hence, the subscribers of Netflix are the major source of revenue.

However, Netflix does not offer any free offers like those on Spotify and others. With the incredible media content, the users do not have any other options but buy the monthly subscription package. With the ad-free media services by Netflix, users get total convenience. Moreover, Netflix also offers a DVD rental for a subscription basis. This is also widely preferred by people.

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How does Netflix Make Money?

As we have discussed previously in the article, Netflix’s main source of revenue is its subscribers as the business model is based on the on-demand video subscription plan. And with this in knowledge, Netflix has over 180 million subscribers. And that is a fancy number.

However, many surveys also recommend that Netflix could increase its revenue from advertising but the company declined as it could lower the user’s experience for the platform.

Today, Netflix offers three kinds of subscription packages which we have discussed below:
1. Basic Package: Access to unlimited movies and Shows available on any device at the lowest price. It does not provide HD content and allows only one screen at once.
2. Standard Package: Two screens are available along with HD quality video.
3. Premium Package: The top plan offers media in ultra HD quality and allows four screens at once.
Conclusion

The Business Model of Netflix is entirely based on its users. It tries to catch as many audiences as it can. Basically, the entire revenue is based on the user’s subscription purchasing. And with the era of binge-watch, Netflix is receiving a great level of success. Started with such a small business, today Netflix has achieved remarkable heights of success and there’s a lot more on its way.

FAQ

What is the revenue of Netflix?

The revenue of Netflix is 2,500 crores USD in 2020.

Who is the founder of Netflix?

Netflix was first founded in August of 1997 by two serial entrepreneurs, Marc Randolph and Reed Hastings.

Who is the CEO of Netflix?

Ted Sarandos is the CEO of Netflix.
July 8, 2021
Wikipedia Business Model | How Wikipedia Makes Money?

Aren’t we all familiar with Wikipedia? They are the world’s largest encyclopedia, and they are also completely free. If you want to know the population of a country or the future film of your favourite actor, we all go to Wikipedia, the online Encyclopaedia. It will be one of the top results if you type anything into Google.

Most of you are probably wondering who still uses it because we all know it’s not a credible source, and even they are aware of it. They even have a Wikipedia page that claims Wikipedia is not a trustworthy source. This is because it is run entirely by volunteers, and anyone can modify the article. This website contains over 5.5 million articles and 33 million registered users, which may surprise you. So now you know how popular this website is.

Okay before we move on to its business model let’s have a look at how this concept came to be in the first place.

Origin of Wikipedia
The rise of Wikipedia
Wikipedia’s Business Model
How Wikipedia makes money?
Criticisms of Wikipedia
Conclusion
FAQs

Origin of Wikipedia

Wikipedia Business Model

The First Wiki

Wiki predates the website itself, having been coined in 1995 by an American programmer named Ward Cunningham. For any database of information gathered collaboratively by a community of users, Ward Cunningham created the first Wiki in 1995, known as the ‘Wiki Wiki Web,’ after the Hawaiian word for ‘quick. Following Wiki Wiki Web, the next major source of information was Nupedia, which was created by Jimmy Wales in 1999 and funded and underwritten by the dot com business ‘Bomis’.

Wikipedia’s antecedent: Nupedia

Larry Sanger, a programmer, was hired in January 2000 to supervise Nupedia’s pages. Previously, the pages required a seven-step approval process before they could be published in an attempt to ensure the articles were of the highest quality with editors expected to hold Ph.D.’s in the field of the publication. The flipside of this approval process was the rate at which art schools were produced with new media accepting only 21 pieces in its first year, not satisfied with the website’s ability to distribute information at such a rapid pace. In 2001, Sanger & Wales started ‘Wikipedia,’ a side project with a significantly straightforward approval process.

The rise of Wikipedia

Rise in No. Of Articles (2002-2020)

It was originally meant to be a for-profit corporation that also provided the website’s bandwidth and server. Within a year of launch, Wikipedia International was also made available in the languages of French, German, Swedish, and Italian and a total of 20,000 articles have also been published. In 2002, Wales and Sanger agreed that Wikipedia would be a non-profit organization, and the firm withdrew from a project due to financial difficulties. In 2003, Nupedia’s website was deactivated and its content was absorbed into Wikipedia, which adopted the first iteration of its jigsaw world logo. In 2003, the Wikimedia Foundation was founded, which is currently Wikipedia’s parent company, and also manages the company’s other products like Wikiquote, Wiktionary, and WikiBooks.

about wikipedia

Wikipedia’s Business Model

Wikipedia is a user-generated encyclopaedia. An online platform that allows users from all around the world to write or update information based on credible sources. This is what makes Wikipedia unique. People can share their thoughts on an issue, providing them the opportunity to stand up and express themselves. It can be a good way for an unlearn strategy (exactly what the word says you forget what you have learned back a long time ago and keep an open mind for new perspectives).

This streamlines Wikimedia’s Business by removing the need to focus on how to increase visitors to their website because there are already volunteers providing free content. All they have to do now is focus on the website, server, and management.

Joining Wikipedia

How Wikipedia makes money?

Wikipedia has continuously been ranked among the top ten most visited websites in the world over the previous decade, with over 50 million pages. Wikipedia continues to rely on voluntary donations for the majority of its funding, with over $90 million in donations received last year. Its board members uphold that they want Wikipedia to remain a free, ad-free information source. On its web store, it sells branded mugs and T-shirts, which produce modest revenue. The average donation to Wikipedia is roughly $15 and their contributions are tax-deductible in several countries.

Criticisms of Wikipedia

Despite being a valuable learning resource for millions of people all over the world, Wikipedia has not been without its critics. In a survey by The Guardian, the three most common criticisms were poor English usage, omissions of vital information, and articles that were unbalanced. It appears to be a small sample of those in charge of the world’s biggest learning resource, with only 400 employees. Several vandalism attacks have also been made against Wikipedia. One of the most well-known examples is the removal of Donald Trump’s page in 2015, which was replaced with the words “Let’s be fair nobody cares about him”. Some of the websites’ fundraising banners have been chastised for obscuring articles and misled people to believe Wikipedia was in financial trouble.

Conclusion

Despite these pitfalls, Wikipedia has been described by Time magazine as the biggest and finest encyclopaedia on the planet. This resulted in a monthly user base of over 250,000,000. It can be impossible to verify what you are reading is always 100 percent true due to the prevalence of Internet vandals and the website’s fundamentally open nature, but I think you’ll be fine with some common sense and cross-referencing.

FAQs

Who is Wikipedia owned by?

Wikipedia is owned by wikimedia foundation.

Which country Wikipedia belongs to?

It belongs to United States.

Does Google own Wikipedia?

Google invests in wikipedia but doesn’t own it.

July 2, 2021