Class work 10.03.2007

ANALIZING THE THREE COMPANIES' CONCEPTS (Innocentive, YourEncore, NineSigma).

Key differences

1. Different data collection:
-Innocentive posts to their recruited network of scientists
-YourEncore posts projects to retired corporate technical personnel
-NineSigma posts Requests for Proposals (RFPs) globally to an open network of inventors, universities, and small/medium/large companies

2. Different fee systems:
- Innocentive charges fee from the Innovation Seekers, who seek for the “best” solutions only
-YourEncore charges fee from
-NineSigma charges fee from all the Innovation Seekers who seek for info (the company connects the Seekers to the results)

3. Different approaches to treat the Solution Providers:
-Innocentive rewards the providers of the “best” solutions only
-YourEncore pays to each employee at a rate that is based on their base salary upon retirement. YourEncore adjusts each salary for inflation and adds a 20% premium to cover bonuses and other related non-salary components of their compensation. With these adjustments and premiums along with the fact that YourEncore pays the employer portion of payroll taxes, carries worker’s compensation insurance, and handles the time consuming tasks of marketing, placement and billing associated with assignments, the retired expert enjoys an attractive compensation for their services
-NineSigma doesn’t reward the Solution Providers


Shared concept
All three companies provide services in scientific research field by intermediating between Solution Seekers and Solution Providers.

ANALIZING THE EASYJET CONCEPT

1. The main sources of revenue

To gain the low-cost leadership strategy the company implemented the following actions :
1. Offering no commissions to travel agents (all the services are provided via internet)
2. Eliminating meals during flights
3. Savings in turnaround time (the key to profits is keeping planes in the air). EasyJet flies only short-haul routes and the company uses only one type of airkraft to minimise parts stock, training and maintenance costs – and to reduce downtime.
4. Negociating low cost with new and existing airports
5. Continuing implementation of more efficient technologies
6. Obtaining profitable conditions of airbus leasing


Additional Revenue sources

From comissions

- Hotels and apartments revenues
- Car rental
- Lounges
- Easy pizza ( food)
- Airports parkings
- Easy bus
- Easy cruise
- Insurances


2. Oppurtunities

- More advertising from the partners
- Affiliation programs (credit cards, mobil operators)
- To create a community
- Business collaborations
- To do more partnerships
- To change the lifestyle of people
- To fidelize the customers with their services
- To create more connection like easy cinema and easy meetic.
- Easy video games
- Easy excursions
- Easy meetiq
- Easy bet
- Easy fast food

3.Cross marketing
- the key element of the owing is the community of the cients
- it’s a networking marketing, with the different product that the company can offer.
- searching for all the opportunities that emerge on the market to provide to the community (Ex. Selling Easy Pizza in the Easy Cinema)

EASYJET BUSINESS MODEL

EasyJet aircompany was founded in 1995 by Stelios Haji-Ioannou. Early on, Stelious came to conclusion that many passengers just want to get from point A to point B at the lowest possible price, so he started an airline without frills named EasyJet.
The company’s main winning ways to work :
• Determining customer needs and motives
• Constracting financial forecasts and budgets
• Low-cost leadership strategy

To gain the low-cost leadership strategy the company implemented the following actions :
1. Offering no commissions to travel agents (all the services are provided via internet)
2. Eliminating meals during flights
3. Savings in turnaround time (the key to profits is keeping planes in the air). EasyJet flies only short-haul routes and the company uses only one type of airkraft to minimise parts stock, training and maintenance costs – and to reduce downtime.
4. Negociating low cost with new and existing airports
5. Continuing implementation of more efficient technologies
6. Obtaining profitable conditions of airbus leasing

Innocentiv.com

1. What is it?
InnoCentive® is an exciting web-based community matching top scientists to relevant R&D challenges facing leading companies from around the globe. They provide a powerful online forum enabling major companies to reward scientific innovation through financial incentives.

InnoCentive matches top scientists to relevant research and development challenges facing leading companies around the globe, for rewards up to $100,000 USD or more.

InnoCentive is a market place.

2. Who owns it?
InnoCentive is a start-up business venture incubated through the e.Lilly division of Eli Lilly and Company, a leading innovation-driven pharmaceutical corporation. Lilly was the first seeker company at InnoCentive providing leadership on the initial InnoCentive problems and awards. InnoCentive is incorporated as an independent company, and partners with various Seeker companies in many science-driven industries to revolutionize the way scientific R&D is done.
The founding Seeker company is Eli Lilly and Company, a leading innovation-driven pharmaceutical corporation.


3. What is the business model?
InnoCentive has established an expert community of problem solvers. The Seekers get their problems posted to a global community of research scientists and then pay for the solutions to problems that are judged "the best" (so, as for the Experts' solutions, only the one deemed "best" by the Seeker will receive a financial award). The solution Seeker pays InnoCentive for this service and problem formulation expertise.


4. What problems does it solve?
Multibrain:
-Time saving
-Money saving
-Reduces the cost of R&D for the company
-Recognition for the talent of the scientists

AMAZON BUSINESS MODEL

Amazon.com (NASDAQ : AMZN) est une entreprise de commerce électronique américaine basée à Seattle.

Sa spécialité la plus connue est la vente de livres. Elle a notamment été appelée plus grande librairie du monde. Elle se diversifie dans d'autres produits, et notamment dans la vente de tous types de produits culturels : disques CD, films, appareils photos numériques, etc.

Il a été crée par Jeff Bezos, son PDG actuel (2005), en juillet 1995 et introduit en bourse au Nasdaq à New York en mai 1997. La filiale française ouvre en 2000.

En 2005, la société emploie, de par le monde, 9000 personnes. Le chiffre d'affaire de 2004 est de près de 7 milliards de dollars avec sept filiales nationales.

Sommaire
1 Business model
2 Entreprises similaires
3 Le groupe Amazon
4 Liens externes

Business model
Pendant longtemps, Amazon.com a perdu de l’argent à chaque livre vendu en raison de ses importants investissements pour s'étendre, mais cette politique était délibérée : elle constituait en effet dans le même temps un fichier d’adresses assorti de préférences personnelles (astronomie, voyages, culturisme...) monnayable très cher auprès des publicitaires pour toucher un public ciblé, par exemple en ligne. Tout comme pour TF1, la captation d'attention permettait de vendre de l'audience, ce qui constituait la véritable source de revenus d'Amazon ! La première année réellement bénéficiaire est 2004, année où les ventes de matériels dépassent ceux des produits culturels. En juillet 2005 Amazon a lancé sa section française de l'électronique vendant des articles tels que des télévisions LCD.


Entreprises similaires
Il faut observer que seul Google, crédité en 2001 de dizaines de milliers de serveurs pour assurer un service de recherche gratuit, fait encore mieux dans le genre : il ne vend en effet rien à son public (le service est gratuit), mais « vend » en revanche le public effectuant tel ou tel type de recherche à ses annonceurs.

Par son activité, Amazon se rapproche énormément de la FNAC. Les différences sont néanmoins importantes entre les deux entités. La FNAC dispose de magasins physiques dans lesquels le public peut se rendre pour acheter les biens proposés, alors qu'Amazon ne les propose que sur internet. Cela diminue les coûts d'Amazon bien entendu et lui permet d'être très compétitif, même si les prix des biens culturels sont assez figés. Amazon.com fut le premier vendeur sur internet à vous donner, lorsque vous achetez un livre par exemple, une sélection des articles achetés par les internautes ayant commandé le même livre que vous. Cela permet de puiser des idées auprès de personnes ayant les mêmes goûts que vous.

Société souvent classée dans les "clicks", entreprises internet, par opposition aux "mortars", entreprises traditionnelles, Amazon a cependant une activité traditionnelle (vente et logistique d'objets physiques) pour laquelle Internet ne représente qu'un (formidable certes) accélérateur, un accès à un marché global, et un moyen de casser les coûts de structure par rapport à un libraire "mortar" comme la Fnac en France ou Barnes & Noble aux USA (il est d'ailleurs à noter que ces deux sociétés, aujourd'hui présentes sur Internet, sont souvent désignées par le vocable "click and mortar"). On oppose souvent Amazon à eBay, dont le business model est radicalement indissociable de l'Internet, à la différence d'Amazon.


Le groupe Amazon
Parmi les sociétés du groupe Amazon.com, on peut citer les moteurs de recherche Alexa et A9, ou la base de données cinématographique IMDb.

VENTE-PRIVEE EVOLUTION

Vente privee was launched in 2001, just after the internet crash. The company operating in internet business was in a stage of stagnation and was forced to seek for the new availabilities to survive. The idea was to sell the clothes from the net. It started from “Weston”, a famous shoe brand. It was a lucky beginning: around 200 people were queuing making a lot of purchases.
This first success gave an idea for the company to grow its market presence through making the deals with the diversified brands, willing to sell on the net.

The cue element of success was partnership with a lot of new brands.

To create an exclusive impression from the site on the clients, the company created a new marketing strategy: any new client can only get an access to the site via the “parrain” (friend).

At the moment the company has … subscribers, more than 200 mln Euros of revenue.
Because of this growth, the company decided to develop its assortment of the products proposed on the site: now besides clothes it proposes wine, plants, products for dog and even cars.

The strength of the company is in anticipating in the needs of the clients.
Last year the company launched the same business in the new markets: in Germany and Spain.

The new opportunities for this business model:
1. Enlarging the sales in the new areas (cars, houses)
2. New market places
3. Developing new creators (designers)
4. Building of community
5. Licencing of the business model and creating a franchising chain worldwide (technology)

Scarlett
Fabrizio

VENTE PRIVEE BOOM

More and more sites that provide vente privee are emerging on the net. The main principles of their functioning are: selling of the big brands for reduced prices (discounts up to 80%) within the limited amount of time (normally not more than 48 hours, though may be up to 1 week).

For being able to participate in these sales, the person should be invited on the site by his/her friend (parrain), who is already registered on the site.

Normally these sites sell clothes, though while this business model is developing , there are more and more other proposals you can meet : food, wine, products for animals and even cars.

The pionnier of the vente privee system was the site vente-privée.com, which operates since 2001 and is really a leader on this market, with the annual revenue exceeding 200 mln Euros, which is constantly growing.

The huge popularity of these sites (more than 70 in France now) is explained by the business-model, which is very lucrative. The system of vente privee is attractive for company itself, for luxury suppliers, and, of course, for customers.

Luxury suppliers benefit from the possibility to sell theis unsold collections (stock-house) very fast (increasing the speed of turnover of the capital) without spending money on advertising, storage and logistic. The big brands work more and more with small limited series which require a constant destocking. For the image of the brand it is rather damaging to expose the devalued unsold clothes in the boutique for a long time. So, this other source of selling its stock-house through the vente privee sites serves like a huge support for the producer.

The brands also profit from the transforming of the care for the stock-house to the third party (vente privee site). For example, vente-privée.com has at its disposal 18 photo-studios and a team of models, graphists and music professionals to provide a top image for the goods, represented on the site.

On top, for the brand it is an extra advertising availability. The customers of vente privee sites get acquainted better with the brand (its style, designs) and one day may wish to buy something in a real boutique.

The company benefits, as it charges some fee on the goods it sells. So, without producing anything and without spending money on operating a shop (as opposed to a phisique boutique), the site makes good profit operating like a mediator.

The customers benefit as they can obtain the top brands for a reasonable price. On top, it can save a lot of time, as it is much faster and more convenient than rambling through a number of phisique boutiques. Everything is rather simple here : several clicks, a number of the credit card and the client can get the dreamed object for a good price.

Though there are some disadvantages as well on these sites : first of all, each sale is very limited in number of articles and in time provided for making a deal. In the same time, the amount of participants, willing to get a product is huge and is growing all the time. That is why, sometimes it occurs that the desired object, that the customer sees on the announce screen, is not available any more in the moment he/she wants to orders it.

Second disadvantage is usually the time it takes to deliver the ordered object. It happens as normally the sites of vente privee dont have any stock at their disposal and should order thelmselves the desired products from the supplier.

That is why, the site vente-privee.com created two big stocks now and can minimise its delivery time.

The target customers of the sites like vente-privee.com are : young people (20-35 years old), who got used to utilize internet in many ways (this kind of customers occupies the biggest portion of buyers through internet as they are more advanced and more internet-oriented than the older generetions) ; business people (for whom the main advantage of it - is time saving). Potentially any person that is interested in fashion for reasonable prices is a client for the vente privee sites.
Nowadays the number of clients of any internet shop is groving rapidly, involving more and more diversified groups of people.