Evaluation of a New Business Model

May 29th, 2015
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Business Models of Facebook and Twitter Introduction Business Model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. In other words, it describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of any business strategy. This paper will present the business model of two successful organizations, Facebook and Twitter.

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Business Models of Facebook and TwitterIntroductionBusiness Model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. In other words, it describes therationaleof how anorganizationcreates, delivers, and captures value,in economic, social, cultural or other contexts. The process of business model construction is part ofany business strategy. This paper will present the business model of two successful organizations, Facebook and Twitter. FacebookFacebook is the leading Social Networking Site (SNS) of the World. Facebook mission is to make the world more open and connected. Facebook has built a Multi-sided Platform (MSP) that serves different customer segments with different value propositions.Facebook helps Internet users stay connected with their friends, families, and colleagues. It helps them discover and learn more about what is going on in the world around them. It helps them express themselves by sharing their opinions, ideas, photos, and activities. Facebook provides a number of products, free of charge, to its users. These include: Timeline, News Feed, Photos and Videos, Messages (Email, Chat, Text Messaging), Groups, Lists, Events, Places, Subscribe, Ticker, Notifications, and Facebook Pages.Facebooks active users grew from1 million peopleto1 billion peoplein 8 years. Beyond the sheer number of active users is how d

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