DIGITAL BUSINESS MODELS
Making the best product or providing the best service is not necessarily the most important thing, but what additional value I am going to generate and how I am going to generate profitability from this process by managing or integrating actions in digital media.
It is not about what I am going to “build” but where I am going to place it and how I am going to manage it to obtain results.
DIGITAL BUSINESS MODELS
A business model is the initial factor that must be defined before making any investment of time and resources. The business model defines the way in which we are going to convert the investment into profitable results for the company and answers the questions:
Why is someone going to pay me and not the competition?
How am I going to grow my business, is it scalable?
Can I replicate my business to other lines, geographic areas and consumer segments?
How am I going to get them to buy me?
How am I going to ensure recommendations from my clients?
How am I going to get them to keep buying from me?
Making the best product or providing the best service is not necessarily the most important thing, but what additional value I am going to generate and how I am going to generate profitability from this process. It is not about what I am going to “build” but where I am going to place it and how I am going to manage it to obtain results.
Much has been said about the effectiveness of social networks, mobile marketing and digital advertising as tools for impacting the consumer, however before thinking about advertising media, creativity and communication we must know how these actions are contributing to our business. we must design a business model in digital media for the company.
For example, Google and Facebook base their business model mainly on advertising and the generation of user, company and market information (and diversify it with new physical lines such as devices, connectivity and audience creation); retail companies are supported in the creation of offers and liquidation of stocks in digital media; Hyundai, Chevrolet and many automotive brands have complementary communication channels through social networks, website and mobile, to generate positioning and contact with their customers as well as raising quotes for the subsequent sale of cars. Netflix, Amazon Prime and Spotify generate subscription-based business that has commercial agreements for content consumption behind and they complement it with their own content production to justify their value offer and make their offer more relevant using the information of preferences, profiles and behavior of users to reduce the risk of your business.