MANAGEMENT INFORMATION SYSTEMSGROUP 7 | INÊS OLIVA | JOÃO LAMARÃO | NUNO LOURISELA | RICARDO CANAS
AGENDA  Industry Analysis    Market Trends   Porter 5 Forces         Yelp   Business Model    CompetitionCompetitive Advan...
INDUSTRYA N A LY S I S
INDUSTRYA N A LYS I S                ONLINE LOCAL BUSINESS RATINGS AND REVIEWS PLATFORMS                                  ...
INDUSTRYA N A LYS I S                                      52% said that positive         16% of consumers said        72%...
INDUSTRYA N A LYS I S
YELP
YELP       an online   platform with ratings                      and reviews of local businesses
YELP       Connecting people with           great local businesses        Businesses, both small and large, use our       ...
YELP  Founded in 2004 to help find great local businesses like dentists and mechanics, and  can be used to find events, li...
YELP
YELP                    Net loss for the                       full year of     Total net      2012 was $19.1    revenue o...
YELP                              TECHNOLOGY   Search and Ranking Technology   Review Filter        Mobile Solutions      ...
YELP                     ARCHITECTURE             EAI – Enterprise Application Integration       ERP                   CRM...
YELP
YELP               SELLING ADS TO           80%                  15%      5%       Local businesses         Brands   Others
YELP
YELP                TARGETED LOCAL ADVERTISING   Advertise on Yelp   Advertise on related     Removal of       search     ...
YELP                                 Integrated                                 Mobile Ad   2012 Q4 Total Yelp Searches  9...
YELP
YELP
YELP
YELPKey Partnerships       Key Activities           Value Propositions          Customer Relationships Customer Segments  ...
YELP                                                                                      Human Resource ManagementFirm In...
YELP
YELPCoverageReview TrustSearch rating systemCommunity styleEasy to use/designConnection with other platforms
YELP       VALUABLE       Free handy guide for local businesses.                      Not many platforms have so many user...
YELP    STRENGTHS                                                       WEAKNESSES   100 million monthly users (network e...
THE FUTURE
THE FUTURE     Europe - Portugal, Greece, Czech Republic, Hungary, Luxembourg and Russia              South America – Braz...
THE FUTURE    1.   From review provider to a social platform    2.   Brand Advertising    3.   Platform Expansion    4.   ...
THE FUTURE    1.     From review provider to a social platform                                                            ...
THE FUTURE          2.     Brand Advertising                               It is a big revenue potentialIncreased number o...
THE FUTURE    3.      Platform Expansion – Key Platform Improvements     Social/User        Service offerings     Generat...
THE FUTURE    3.     Platform Expansion – Key Platform Improvements                              Social            New    ...
THE FUTURE          ?.       Scenario Analysis                                                 %     Values ($M)Local Busi...
THE FUTURE            ?.       Scenario Analysis                                                Pessimistic   Most Likely ...
THE FUTURE    4.   E-Commerce                               Gift cards, ticketing for events, create their own         De...
THE FUTURE    5.   Mobile Monetization            Gamification                                 Mobile              through...
THANK YOU
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Yelp final

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Yelp final

  1. 1. MANAGEMENT INFORMATION SYSTEMSGROUP 7 | INÊS OLIVA | JOÃO LAMARÃO | NUNO LOURISELA | RICARDO CANAS
  2. 2. AGENDA Industry Analysis Market Trends Porter 5 Forces Yelp Business Model CompetitionCompetitive Advantage Value Chain Revenue Model The Future
  3. 3. INDUSTRYA N A LY S I S
  4. 4. INDUSTRYA N A LYS I S ONLINE LOCAL BUSINESS RATINGS AND REVIEWS PLATFORMS These days, you’re dealing Every business wins and With so many businesses to with an educated customer loses new customers every choose from, being number who does their research day before the potential one on Google is almost and does not care what you customer even sets foot out never the only deciding have to say about your the door. credibility or trust factor. business: they care what others have to say. Welcome to the word-of-mouth marketing
  5. 5. INDUSTRYA N A LYS I S 52% said that positive 16% of consumers said 72% of consumers trust online reviews make them they used the Internet online reviews as much as more likely to use the local every week to find local personal recommendations business businesses (vs. 9% in 2010) 27% of consumers There’s a decline in the The continued growth of regularly use online number of reviews being mobile internet usage reviews to determine read by consumers – they suggests that more and whether a local business is are forming opinions more consumers will be a good business (vs. 22% in faster and trusting reviews searching and finding local 2010) more. businesses online
  6. 6. INDUSTRYA N A LYS I S
  7. 7. YELP
  8. 8. YELP an online platform with ratings and reviews of local businesses
  9. 9. YELP Connecting people with great local businesses Businesses, both small and large, use our platform to engage with consumers at the critical moment when they are deciding where to spend their money.
  10. 10. YELP Founded in 2004 to help find great local businesses like dentists and mechanics, and can be used to find events, lists and to talk with other yelpers Every business As of January owner (or 2013, Yelp In 2012, the Yelpers have manager) can reached 100 mobile app was written over 36 setup a free million unique used by 9.2 million local account to post visitors on its million people reviews photos, video website and message his customers Yelp makes money by You can access Yelp via Yelp is traded on the selling ads to local iOS, Android, Blackberry New York Stock Exchange businesses and brand and other mobile OS’s advertising
  11. 11. YELP
  12. 12. YELP Net loss for the full year of Total net 2012 was $19.1 revenue of million, or $0.3 Active local Average Cumulative 2012 was $137. 5 per business monthly unique reviews grew 6 million, an share, compare accounts grew visitors grew 45% year over increase of 65% d to a net loss 68% year over 31% year over year compared of $16.9 year year to $83.3 million, or $1.1 million in 2011 0 per share, for the comparable period in 2011
  13. 13. YELP TECHNOLOGY Search and Ranking Technology Review Filter Mobile Solutions Network Security Internal Management Systems
  14. 14. YELP ARCHITECTURE EAI – Enterprise Application Integration ERP CRM SCM
  15. 15. YELP
  16. 16. YELP SELLING ADS TO 80% 15% 5% Local businesses Brands Others
  17. 17. YELP
  18. 18. YELP TARGETED LOCAL ADVERTISING Advertise on Yelp Advertise on related Removal of search businesses competitor ads
  19. 19. YELP Integrated Mobile Ad 2012 Q4 Total Yelp Searches 9.2M Mobile devices
  20. 20. YELP
  21. 21. YELP
  22. 22. YELP
  23. 23. YELPKey Partnerships Key Activities Value Propositions Customer Relationships Customer Segments Screening Reviews Software Costumers Local Business Development Profiles Giving the Microsoft’s opportunity for Bing Local Business to IT Infrastructure Advertise Key Resources Channels Companies IT Internet Infrastructure Facebook Advertising for companies SoftwareCost Structure Revenue Streams Staff Selling adds to Local business IT infrastructure Brand Advertisement
  24. 24. YELP Human Resource ManagementFirm Infrastructure High qualified workersHuman Resource Management Technology Research & Development – most important function to be alwaysTechnology improvingProcurement Operations Using the activities developed at the stages of support activities will Outbound Logistics Marketing & Sales Inbound Logistics Service promote the final service Operations Service activities that maintain and enhance the products value including customer support (feedback and advice)
  25. 25. YELP
  26. 26. YELPCoverageReview TrustSearch rating systemCommunity styleEasy to use/designConnection with other platforms
  27. 27. YELP VALUABLE Free handy guide for local businesses. Not many platforms have so many user-generated RARE reviews. Yelpers experience – not a mobile-only experience INIMITABLE (content provides website engagement) NON-SUBSTITUTABLE Industry/Sector coverage
  28. 28. YELP STRENGTHS WEAKNESSES 100 million monthly users (network effect)  Potentially legitimate reviews caught in Users generate the content Yelp’s review filter Low costs (operational)  Revenue model Local reviews aligned with social network  Their customers (small businesses) have Peer feedback mechanisms limited budgets to spend on advertisement Placement of the popular reviews  Low switching costs (small businesses can Integration with mobile devices change easily to Google or Facebook ads) Augmented reality Mobile monetizationOPPORTUNITIES T H R E AT S Entering new markets  Lawsuits Developing their social network platform  Privacy issues Gamification through augmented reality  Facebook and Google competition
  29. 29. THE FUTURE
  30. 30. THE FUTURE Europe - Portugal, Greece, Czech Republic, Hungary, Luxembourg and Russia South America – Brazil, Ecuador, Colombia, Chile and Peru Asia – China, Japan and Macau
  31. 31. THE FUTURE 1. From review provider to a social platform 2. Brand Advertising 3. Platform Expansion 4. E-Commerce 5. Mobile Monetization
  32. 32. THE FUTURE 1. From review provider to a social platform More Intensified user More interaction contribution to engagement between them the site Incremental reviews, photos, etc.  Increased user traffic in the platform  Gain momentum  Create network effect
  33. 33. THE FUTURE 2. Brand Advertising It is a big revenue potentialIncreased number of users engaged in the social Yelp platform will create the network effect It will attract brand advertisers with big budgets MORE MONEY
  34. 34. THE FUTURE 3. Platform Expansion – Key Platform Improvements Social/User  Service offerings Generated  More integrated check-in capabilities (checked in, bought X, Content with friend Y, for event Z)  Professionally written content Editorial Content  Travel guides  Visual and video content – Yelp Channel/Magazine Expanded  Open up their website for 3rd party apps – let the users Platform choose what they want to adopt
  35. 35. THE FUTURE 3. Platform Expansion – Key Platform Improvements Social New Check-in network Review capabilities platforms Filter Higher conversion rate Increased revenues
  36. 36. THE FUTURE ?. Scenario Analysis % Values ($M)Local Business to Advertising Conversion Rate 4% Local Business Revenues 80% 110,08 Brand Advertising Revenues 15% 20,64 Other Revenues 5% 6,88 Total Revenues 100% 137,6
  37. 37. THE FUTURE ?. Scenario Analysis Pessimistic Most Likely OptimisticLocal Business to Advertising Conversion Rate 4,5% 6% 10% Local Business Revenues 123,84 165,12 275,2 Revenues Increase 12,5% 50,0% 150,0%
  38. 38. THE FUTURE 4. E-Commerce  Gift cards, ticketing for events, create their own Deeper integration payment and loyalty solution with merchants and more creative offers  They need to enter into the part of the transaction, not just at the endpoints (discovery and review)
  39. 39. THE FUTURE 5. Mobile Monetization Gamification Mobile through Advertising augmented reality
  40. 40. THANK YOU
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