How Apple, Amazon, Microsoft, Facebook and Google make $$$?


DREAM JOB

Few days ago my RSS reader brought me this: Get a Job in the Business Model Field, which I’d like to quote

Does this sound like you? You strive to help companies unlock potential by using better business design techniques. You have already done so by researching, applying and “teaching” practical and visual business design tools, in particular the Business Model Canvas and the Value Proposition Canvas.

I couldn’t believe it, it’s kind of my dream. I mean, I already dream and imagine often how to turn whatever in a business.

STALKING ACTIVITY

I often stalk friends to convince them how to slightly take a different approach and make tons and tons of $$$. I have one old school mates which I hear two/three times a year, just for: “what do you think about this activity? How can I make money?” (Ciao Giuseppe!).

LITTLE STORY

Last try was to convince a infant neurologist who wanted to make cute and funny tests for kids, to work with my superskilled coder (incidentally my brother) and my favourite designer and illustrator (still thanks for my wedding invitation cards), and make a solid business: Free games for kids, unlock levels with parental consent to send anonymous track record of usage (meaning psychological tests), $$$ premium aptitude tests for parents, free data for the researcher (fame, honor and $$$).

It has been about 8 years I’ve played my game: “how would I earn money from this guy/product/idea/company?“, so here…

QUICK BUSINESS MODEL ANALYSIS

Five major companies are:

  1. Apple: quality hw (niche, prestige) with seamless sw/content integration
  2. Amazon: long-tail content license, pre-packaged with speed, choice and perfect post-sales service
  3. Microsoft: basic sw, pre-sold with hw or requested by the game industry or because office-habit
  4. Facebook: premium services, 3rd part ads, geo-marketing
  5. Google: premium services, 3rd part ads, geo-marketing

I’m definitely a nerd math kind of guy, so I need some category to understand and compare them. Let’s see what they look like…

QUALITY vs CHOICE
I see that I can separate easily Apple, Google VS Amazon, Microsoft, Facebook

INTERNAL (INTEGRATION) CROSS SELLING vs EXTERNAL INTEGRATION
Obviously Apple, Amazon VS Microsoft, Facebook, Google

DIRECT SALES vs FREEMIUM
Apple, Amazon, Microsoft VS Facebook, Google

Now sorting through them we get:

  1. Apple: QUALITY + INTERNAL + DIRECT
  2. Amazon: CHOICE + INTERNAL + DIRECT
  3. Microsoft: CHOICE + EXTERNAL + DIRECT
  4. Facebook: CHOICE + EXTERNAL + FREEMIUM
  5. Google: QUALITY + EXTERNAL + FREEMIUM

EPIPHANY

Uh uh! I see something. Kind of ring, right?
Do you feel too, it is missing a company like 6.QUALITY + INTERNAL + FREEMIUM?

All right, I know another option to get a company in the middle of Google and Apple is the combination 7.QUALITY + EXTERNAL + DIRECT. But if you look at it, like a nerd, you’ll see that it is more symmetrical the first option (if you cannot see, try to draw a cube, a 3d variable system, and check where are all points 1,2,3,4 and 5. You see that only 6 can make two edge for each face of the cube?)

BONUS

Now, just to play, how can we make a company with QUALITY instead of choice, with strong CROSS SELLING, but using a FREEMIUM model of sales?

I can think of three proxies, like WordPress, Curation, Logos.com.

WORDPRESS: starts free, few templates and options but good-looking, and tries to sell features upgrade, space and external seamless services (buy a domain).

CURATION: they get free content, select and sort it (QUALITY), make available basic stuff for free, prefer to focus on niche (choiche), and cross-link everything to keep you interested and inside

LOGOS.COM: my latest content-ATM. They sell bibles and commentaries, but every single resource you buy it is connected to everything else in a way that when you buy one piece more it multiplies the way you can use it.
Think of a fiction book with hyperlinks everywhere and ready to go back and forth without fuss. You will buy soon ALL the books!

PS. HELP ME PLEASE

Since I’m applying for the job, it could be that writing a nice comment would help me a little bit, so… thanks for your comments!!!

PS. UPDATE – DO WHATEVER

Since I didn’t pass the interview – no experience at all – leave a comment if you want. Or not.

4 thoughts on “How Apple, Amazon, Microsoft, Facebook and Google make $$$?

Give me Your 2 çents / Dimmi che ne pensi

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