Tag Archives | Business Strategies

Making Money via Mashups

Dial back a year or two and there were lots of questions about whether mashups supported a viable business model. Concerns centered around: low barriers to entry, copyright issues and the risk of someone else owning the data. While all are legitimate concerns, none seems to have derailed the mashup phenomenon.
So what’s going on? Do developers no longer care about making money? Hardly.

Piracy and Revenue Optimization

A winning business model requires a unified and all-encompassing approach that goes far beyond how monies are collected and products or services are delivered. In an earlier article, I mentioned a long list of functional areas that must align around a winning business model, but neglected to include Legal. How the legal eagles affect business models is critical and deserves an article of its own. That’s right–even the legal team is part of a winning business model.

Better than Free

Kevin Kelly has a thought-provoking post on what adds real value in an Internet-centric world. He likens the Internet to a giant copy machine. If books, music, even ideas, can be freely copied so that they are free, where will value reside. To answer the question, he lays out eight “generatives”–or things that cannot be copied, and thus remain valuable. Read the whole thing.

Amen, Brother

“Don’t envy your competitors; this has done more for hurting AMD than anything Intel could do to us.”

Pricing as a Head Trip

Can prices be set too low for consumers? A recent study by Dr. Antonio Rangel of CalTech says yes. Dr. Rangel observed the brain activity of subjects and found they exhibited more pleasure drinking wines when they thought they cost more. For those of us that study the finer points of pricing, this is a very interesting result. We all know that there is a sense to “you get what you pay for” that acts as a negative factor when evaluating the lowest priced alternatives. What Dr. Rangel has established is that there is more than the fear of getting stuck with an inferior product at work; people actually get more enjoyment from certain products if they think they cost more. The data communicated by the price is working not just at a rational level, but at an emotional level as well. That is, from the brain’s standpoint, these products are objectively better in a post-purchase environment.

What was Ford’s Alan Mulally thinking?

Unless you are selling talking beer openers or donuts, comparing your product to Homer Simpson defies conventional wisdom. When your product is a slow-selling car, your actions are certain to leave people saying, “D’oh!”
Yet, this is exactly what Ford Motor CEO Alan Mulally did recently. He wasn’t subtle, in a public speech he projected an image of Homer over a picture of Ford’s Taurus sedan while being critical of the design and talking up future models as much better. We can be pretty sure that this will not rally sales of the Taurus over the coming months, so has Mulally gone mad or is he actually smart?