The web economy in 20 minutes

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The web economy in 20 minutes

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The web economy in 20 minutes

  1. 1. The Web Economy in 20’<br />Business English Presentation<br />Authors: <br />Mauro Cavallaro<br /> Daniele Papa<br />
  2. 2. AGENDA<br />WEB ECONOMY<br /><ul><li>Value System
  3. 3. Cost
  4. 4. Fixed
  5. 5. Variable
  6. 6. Revenue
  7. 7. Price
  8. 8. Advertising
  9. 9. UGC vs Make/Buy</li></ul>2<br />ANALYZED CASES<br /><ul><li>Facebook
  10. 10. Financial Times
  11. 11. SlideShare
  12. 12. Fotolia
  13. 13. Bloomberg
  14. 14. Google</li></ul>CONCLUSIONS<br />
  15. 15. INFORMATION<br />Information = everything you can digitize<br />Text<br />Image<br />Audio<br />Video<br />VALUE<br />Consumer goods<br />Factors of production <br />3<br />
  16. 16. VALUE SYSTEM <br />MAKE<br />ADV<br />$<br />Provide Information<br />BUY<br />Attention<br />USER GENERATED CONTENTS<br />USER<br />$<br />Information<br />Money<br />Attention<br />4<br />
  17. 17. INFORMATION COST<br />Cost<br />TC<br />Information Cost<br />TFC<br />InfrastructureCost<br />FC<br />VC<br />Cost per Unit<br />Marketing Cost<br />ATC<br />MC<br />Connectivity Cost<br />VC<br />Volume<br />TC: Total Cost<br />TFC: Total Fixed Cost<br />VC: Variable Colst<br />5<br />ATC: Advrage Total Cost<br />MC: Marginal Cost<br />
  18. 18. COST: Fixed Costs<br />Information Cost<br />Infrastructure Cost<br />Marketing Cost<br />MAKE<br />BUY<br />DESIGN<br />SOFTWARE<br />HOSTING/HOUSING<br />ADV<br />SEO/SEM<br />OTHER<br />6<br />
  19. 19. COST: Variablecosts (long run)<br />Cost per Giga per Month<br />Gigabytesofbandwidth<br />LOW COST HOSTING<br />VIRTUAL SERVER<br />HOUSING<br />TYPE<br />7<br />
  20. 20. REVENUE: Advertising<br />“Google AdWords is a service that lets you create and run ads for your business, quickly and simply.”<br />Google Adword<br />keyword competition<br />1<br />4<br />2<br />5<br />3<br />6<br />7<br />SERP<br />8<br />9<br />10<br />8<br />
  21. 21. REVENUE: Price<br />PRICE DISCRIMINATION<br />Revenue<br />Revenue<br />Financial Times<br />Slide Share<br />Price<br />Price<br />Price<br />$/U<br />$/U<br />$/U<br />P*2<br />P*<br />P*1<br />Volume<br />Volume<br />Volume<br />9<br />
  22. 22. UGC vs Make/Buy: Pros & Cons<br />10<br />MAKE/BUY<br />UGC<br />Higher information quality<br />Lower Fixed Costs<br />Information property<br />Better knowledge of users<br />Higher Fixed Costs<br />Need of critical mass<br />High breakeven point<br />Need of moderation<br />Pros<br />Cons<br />
  23. 23. Facebook<br />MAKE<br />ADV<br />Information Cost<br />FaceBook<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />11<br />
  24. 24. Financial Times<br />MAKE<br />ADV<br />Information Cost<br />Ft.com<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />12<br />
  25. 25. SlideShare<br />MAKE<br />ADV<br />Information Cost<br />SlideShare<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />13<br />
  26. 26. Fotolia<br />MAKE<br />ADV<br />Information Cost<br />Fotolia<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />14<br />
  27. 27. Bloomberg<br />MAKE<br />ADV<br />Information Cost<br />Bloomberg<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />15<br />
  28. 28. Google<br />MAKE<br />ADV<br />Information Cost<br />Google<br />BUY<br />InfrastructureCost<br />FC<br />USER<br />UGC<br />Marketing Cost<br />Connectivity Cost<br />VC<br />16<br />
  29. 29. Conclusions<br />MAKE<br />ADV<br />$<br />Provide Information<br />BUY<br />Attention<br />Revenues<br />Costs<br />USER GENERATED CONTENTS<br />USER<br />$<br />Information<br />Money<br />Attention<br />Information Cost<br />Price Discrimination<br />InfrastructureCost<br />FC<br />Marketing Cost<br />Advertising<br />Connectivity Cost<br />VC<br />17<br />
  30. 30. Thankyouverymuchforyourattention!AnyQuestions?<br />

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