Tag: working model

  • Main Reasons For The Failure Of Orkut

    Social media has become crucial for everyone. People of different age groups, teenagers and adults have social media accounts and they use them for various purposes. Social media is basically technologies that facilitate the creation and sharing of information, photos, ideas, videos, and so on.

    These days, there are a lot of different social media platforms and the emergence of advanced platforms led to the Orkut downfall. Social media can help share details with the public and also meet other people who are available on the platform. It doesn’t stop there. Social media is now used for marketing and it has proved to be one of the best sources of marketing. The use of social media has been increasing since it came into existence. Orkut was one of the very earliest social media platforms. Orkut founder is a Turkish engineer named Orkut Büyükkökten.

    Orkut was Google’s first step towards social media and it was extremely successful. Orkut was launched in the year 2004 and had a lot of competitors like Yahoo messenger, skype, etc. Orkut could very easily get ahead of all the competitors. It could make it through with 3 times more users than Facebook. All these were in the Orkut’s initial stages. Even India and Brazil had a lot of users for Orkut. Keep reading to find out about the rise and fall of Orkut.

    Orkut Features
    The differences between Orkut and other Social Media Platforms
    Reasons behind Orkut’s Failure
    Frequently Asked Questions


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    Orkut Features

    The top features of Orkut were

    • the Orkut profile allowed the user to add friends and message them privately
    • sending scraps to people (which was visible to everyone)
    • posting images and videos
    • option of liking each other activity
    • Orkut games and community polls were a popular feature
    • a unique Orkut feature is customizing themes
    • Rating your friends and becoming each other’s fans

    The differences between Orkut and other Social Media Platforms

    When Orkut started it was just like other social media platforms but with some differences. These differences might have been the reason for their success initially. It had features wherein one can create an account, manage a profile, and so on. Orkut had one good feature that other platforms did not have. There was an option for ‘crush list’ and we can customize themes on this platform. This was not available on any other platform. Other than this, the working of Orkut was similar to the working of other platforms. The Orkut login and interface was quite easy but it lacked other features.


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    Reasons behind Orkut’s Failure

    In the year 2014, Orkut was shut down. So why did Orkut fail? It was because it did not have a very good user base and most users started shifting to other social media platforms from Orkut. There were a lot of reasons for this. this, Google was closed to shut down Orkut. The main reason for this was the emergence of other social media platforms that were in most ways better than Orkut. Here, let us analyze the reasons for Orkut’s failure.

    One main reason for the failure of Orkut was the competitors growing much faster.
    One main reason for the failure of Orkut was the competitors growing much faster.

    1. Privacy

    People love posting on social media and maintaining a profile but at the same time, they expect some privacy. One of the biggest reasons why Orkut was closed, was because everyone could see anyone’s profile and also personal information and contact details. You could stop someone from seeing your profile only if you put them on your block list. Facebook had a few privacy settings and options to show the profile and other details only to people who are added to your friends’ list. This made a few users switch to Facebook, one of Orkut’s leading competitors as it looked much safer than Orkut.

    2. Speed

    The website was initially fast and worked perfectly well but later, after a few redesigns, it became very slow and the loading took a lot of time. Also, with the number of users increasing, it became a bigger issue. The existing server was not enough to handle so many users and hence the uses had to wait for a long time to reach the landing page. Also, when Orkut was in the initial stage, the average internet speed was quite low.

    3. Not Very User-friendly

    Initially, Orkut was very easy to use and this attracted a lot of users. The redesigns were very complicated and most of the additions were even irrelevant to the concept of Orkut. Facebook and other social media using were found to be easier than this one. Users see social media as a source for entertainment, fun, and relaxation and hence they expect it to be very simple. Orkut shut down reason being that people started deleting their accounts on the platform.


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    4. Not Mobile-friendly

    As Orkut started becoming famous, mobiles and other smaller devices started becoming popular and most users preferred using the same. With this, Orkut could not cope with the changes. Orkut found it very difficult while Facebook catered to customer needs. Also, since it was slow, it was not very comfortable for the users to use it on mobile devices.

    5. Google Diverted Its Attention Towards Google+

    Google being very successful and developing, started focusing on other projects that were unique like YouTube. With the introduction of Google+, which is also a social media platform that had more features, Google wasn’t giving enough importance to Orkut.

    6. Users Preferred Facebook

    Customers and users found that Facebook was better for them than Orkut. Facebook had the ability to update quickly to users’ needs. They were able to find out exactly what the user needs and update the website accordingly. Adding the privacy feature was one of the best decisions that Facebook had taken. If only Orkut had tried this first, they would have been in the market for a little while.

    7. Not Business Friendly

    Orkut was limited to personal interactions, while Facebook became the platform for online marketing and advertisements. Facebook also had many additional features such as games, liking posts and sharing which are crucial for marketing whereas Orkut lacked those features.


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    Conclusion

    With this growing trend, it is very important for companies to work on capturing customers and work more towards retaining customers. Orkut failed in all of this. Market trends and customer psychologies keep changing and Facebook and other social media sites were changing according to it but Orkut failed to do the same and instead they made it more complicated.

    Also, Google, on knowing all this, could have worked more on Orkut and made it better. Google also proved to be successful in other ways. From Orkut, there is one lesson that startups and other companies can learn. Coping with competitors is extremely important. Orkut, being launched by Google, could do it but still failed to do so.

    Also, all customers expect a lot of things from companies and it is the company’s duty to fulfil all of it or at least some of it. Orkut failed in that too. Very small mistakes have led to the shutting down of a company that was started by Google. After all, little drops of water make a mighty ocean and hence little mistakes that companies do can put them in a very bad place.

    Frequently Asked Questions

    Is Orkut still working?

    Shutdown. On June 30, 2014, Google announced that Orkut would be shutting down completely on September 30, 2014. Users could export their photo albums before the final shutdown date. Orkut profiles, scraps, testimonials, and community posts could be exported until September 2016.

    Who invented Orkut?

    Orkut Büyükkökten. Named after its creator Orkut Büyükkökten, a Turkish engineer, the social media platform enjoyed unparalleled popularity in Brazil and India, especially among the 20-somethings. Today, they remember Orkut as something they ‘did’ before Facebook.

    Why did Orkut fail and Facebook succeed?

    Facebook was the main reason behind Orkut’s failure. Though redesigned several times Orkut was not able to retain its user base. Facebook kept it as simple as it could for the user so Orkut’s loss was Facebook’s gain. Orkut never tried really to take up to revive itself.

    Is Orkut coming back?

    Orkut might come back but rename as Hello

    Why did Orkut shut down?

    Orkut was one of the most visited sites in countries like India and Brasil in 2008. However, it had to be shut down due to the growing legal issues.

    Orkut vs Facebook, which is better?

    Facebook is better than Orkut because it has more security, while Orkut has less chance of malware.

    When did Orkut shut down?

    Orkut was shut down by Google in 2014.

    What happened to Orkut?

    Many other social media sites became more popular than Orkut so the users shifted to them.

    Which countries are the biggest users of Orkut?

    Orkut is popular in countries such as Brazil, Paraguay, India, Pakistan, Portugal.

    Who is the owner of Orkut?

    Google is the owner of Orkut, while the Orkut founder is Orkut Büyükkökten

    Orkut or Facebook which came first?

    Orkut came out in 2004 just ten days before Facebook was launched.

  • How do OYO Rooms Work?

    Oyo Rooms is the largest branded community of lodges presently running 450,000 listings in 5,000 towns in India, Malaysia, UAE, Nepal, China and Indonesia. The organization commenced its operations by constructing its enterprise version around the aggregator enterprise version.

    Oyo rooms working model operates on the investment worth $1.7 Billion (modern investment raised on April 1st,2019). Meanwhile, the organization values $5.7 Billion with its headquarters in Gurgaon, Haryana. Oyo rooms offer their services in India in conjunction with worldwide locations like China, Malaysia, Nepal, the United Kingdom, the United Arab Emirates, Saudi Arabia, the Philippines, Indonesia and Japan with serving more than than 500 towns in India whilst running greater than 45,000 rooms globally as of January 2019.

    Ritesh Agarwal, founder of Oyo Rooms stated that Oyo is now including 10,000 rooms or near 500 lodges each month below its franchise version. The shift in its enterprise version has additionally allowed Oyo to elevate its fee. Earlier, below the aggregator version, Oyo charged 18% fee from resort proprietors each month.

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    Oyo Pricing System

    Moving to a franchise version had little or no effect on the pricing of rooms, the finance class of rooms priced Rs1,000-1,500 in line with nighttime will stay unchanged. The finances Oyo Rooms class below the franchise version will now fee everywhere among Rs1,000 and Rs2,500; the Oyo Town House class has a price range of Rs2,500 and above, and holiday houses below the Oyo Homes class will cost Rs1,000 in line with the room.

    Oyo Rooms Dominate the Market by 68%
    Oyo Rooms Dominate the Market by 68%

    Earlier, the organization used to arrange the accomplice with lodges, rent a few rooms, and promote them below its personal logo. Even though the procedure remains the same, Oyo Rooms enterprise version has modified its path to a new structure. To preserve the logo image, they make the companion’s offer offerings at predetermined requirements whilst they lead them to greater visibility to their user-base.

    Earlier the company used to rent lodges at a predetermined rate and supplied them to the customers at a take-up rate. This has been modified to a fee-based totally sales version. Oyo rooms charge a commission of 22% from its hotel partners. However, this commission does vary according to the services provided by the brand.

    Agarwal was among the select few chosen for the two-year mentorship program run by Peter Thiel, co-founder of PayPal, early Facebook investor and the person who many name as the worldwide tech industry’s influential figure.

    Since its launch in 2013, Gurugram-based Oyo has emerged as one of the biggest motels and rooms platform for travelers looking out no-frills, cushy lodging at much less expensive prices. While Oyo Rooms has modified lots over the years, tweaking and re-modelling of the unique industrial enterprise concept for Oyo, the middle concept is to attach travelers with motels.

    The company has gone from budget hotel aggregator to a hospitality chain and a real estate business too. Oyo rooms cost a fee of 22% from its lodge companions. However, this fee does range steady with the offerings furnished with the resource of using the brand. The beginning started out on an asset-mild version however over the years, with investments throughout numerous companies inside Oyo, the organization has long passed from rate range lodge aggregator to a hospitality chain and an actual property enterprise too.

    Oyo Rooms Business Model

    The organization could rent the lodge rooms and revamp it to a standardized format, allow reserving through its website or application. However, in 2015, the organization started moving to a franchisee version, wherein, in choosing leasing rooms, it started out offering partnerships to motels. Here are the numerous verticals that Oyo has brought over the years.

    • Hotel room aggregation
    • Franchise version
    • Owned motels
    • Co-living

    Hotel Room Aggregation

    Oyo in 2016 had 5,855 motels in its community with a complete stock of over 68K rooms, while nowadays it has a portfolio of greater than 35K motels and 125K holiday homes, and over 1.2 Million rooms throughout 80 worldwide locations and 800 cities. Its verticals range from vacation homes, enterprise motels, casinos and co-working areas.

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    That boom has additionally been made feasible because of the fact that the startup saved iterating the version and ensured that it now no longer stays restricted to the rate range lodge space. With extra than one round of investment secured from maximum important traders which include Softbank, the startup ventured into extra modern classes and has continuously released new ventures or manufacturers below its umbrella.

    Oyo Rooms in India VS China
    Oyo Rooms in India VS China

    Franchise Model

    In 2017, Oyo CEO Agarwal announced that the organization has “developed its enterprise to a 100% extraordinary franchise, manipulate or operate. We no longer anymore do lodge aggregation and feature flip out to be a full-scale hospitality organization.” Oyo’s shift from lodge aggregation to franchise version were given here in particular to lessen its operational fees and to enhance serviceability, the organization stated.

    For instance, Oyo Townhouse is deliberate and constructed throughout the needs and desires of millennial visitors beginning in particularly designed beds, TVs, open areas for conferences and greater. While merchandise like Collection O is a mid-scale enterprise lodge presenting larger and spacious rooms with pinnacle rate furnishing and linen, on-request laundry, limitless breakfast, 24X7 in-room dining, high-velocity WIFI workstations in each room etc.

    These merchandises were a separate Oyo product, in which the organization rents out homes and renovates them based totally on the wishes and plans. So, overall, the organization has stopped reserving unique rooms for Oyo visitors, however alternatively, books the complete lodge or flat below its call and rents it out to customers.

    Owned Hotels

    Further, the organization gives its lodge companions the choice to run the assets both themselves or allow Oyo to run the operations. The organization additionally gives economic guide through its partnership with economic institutions that have allotted loans to greater than a hundred properties. Loans are to be had for upgrading space, operating capital and different wishes.

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    Co-living

    As in retaining a combined report with the resource of using Jones Lang LaSalle (JLL) and the Federation of Indian Chambers of Commerce & Industry (FICCI) the Indian co-living marketplace is predicted to boom at a robust CAGR of 17% within the subsequent 5 years. Identifying the marketplace opportunity, Oyo entered the phase in 2018 with Oyo Life, which operates a fully-provided condo housing arm of Oyo.

    Oyo believes that the maximum important benefit of co-living areas, alternatively than paying visitors or serviced apartments, is that it notably cuts down the value of residing because of the fact now no longer handiest do humans proportion the lease however additionally revel in upload on offerings which include each day housekeeping, laundry/ on-name resident facility control; curated meals, etc.

    Oyo works with big builders and impartial asset proprietors to take over a whole building, tower or an impartial house. Oyo Life isn’t an aggregator and takes obligation for a stop to stop control of areas, rent whole homes, furnish, clean rework.