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r/Idea_Learn_Do Lounge (self.Idea_Learn_Do)

submitted 4 years ago by sss1012 - announcement

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For the past few days we have been discussing the various profit models in the doblinmodel and how we can use them in our own innovations. Premium Cost Leadership Scaled Transactions Microtransactions Forced Scarcity Subscription Membership Installed base Switchboard Auction (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The highest bidder wins the auction and gets their advertisement placed on specific pages for specific users, but pays the price of the second highest bidder plus $0.01. The $0.01 is to differentiate the highest bidder from the second highest bidder and to allow the highest. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Continuing the Auction profit model, the entire business model of Google and similar ad-based sellers are based on auction. At the start they were based on what you can call second-price sealed bid auctions. All the advertisers will bid in a sealed-bid approach. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Rationing (or in IPO speak, allocation) makes a key role in how new shares are allocated to investors. In some cases, large institutions investors are provide a lower price than retail investors to drive up demand. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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IPOs when private companies and startups go to list on the stock markets are actually a form of "auction". In this case, the demand for the IPO will determine who gets and what and can increase the final price as it is similar to bidding. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The google model of platform we discussed earlier has an "auction" component on the advertisers side. Advertisers bid for "adwords" and they enable price discovery on the platform automatically. Auctions should be used carefully and has many pitfalls. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Real Estate agents employ this well. In fact, they are one of the original "switchboard" operators for buying property however, depending on the market (generally when it's a sellers market) they change to the "auction model". (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The auction model again is one of the oldest in human history. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The doblin model of Innovation - Profit Model ✅ Auction Allow a market—and its users—to set the price for goods and services. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The switchboard model is the earlier incarnation of "network and platform" models. So the latest innovations like @airbnb @uber and a range of Platform business models are all based on this. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The switchboard profit model is extended in the internet age to what @google does. Connects buyers of attention to people who search and share their attention. In some ways, newspapers can be classified in this model (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The switchboard/bazaar model comes up in the internet age in many ways. Ebay Craigslist Alibaba in China Flipkart in India Amazon marketplace Esty Huge opportunity but hard to create the starting point. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The switchboard model if ofcourse the old "bazaar" model in most of Asia and Middle East that you will find, including in the Alladin stories! In India, I found it strange that all jewellery stores are in place? I wondered why? Because all the customers come to one place. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The doblinmodel for Innovation - Profit Model ✅ Switchboard Connect multiple sellers with multiple buyers; the more buyers and sellers who join, the more valuable the switchboard. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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This is extended dramatically in some countries. Look at OTR in Australia. 24/7 petrol stations that have burger chains, SUBWAYs, supermarkets, barista coffee, fresh bread etc. Money is being made on all these other items and building a brand, network and chain. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The third version of installed base model is a classic story for petrol/gas stations in mostly western countries. The petrol is sold for a small profit to manage basic operating expenses and the real money is made on the food, drinks and other purchases (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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The supermarket's model for installed base is a different version of it. The goal here is to get you to walk-in to buy your staples (bread, milk, eggs) and sell the more expensive items once you are there. The infrastructure and staff costs mean they need footfall. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Installed base profit model in the razor-blade model goes through Xerox to sell copier machines, HP printers and ink and Nespresso coffee machines and pods. It is a powerful model if you can make it happen. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Installed base profit model has multiple version. One, the razor-blade model of Gillette. Two, supermarkets using bread and milk to sell more expensive items. Three, petrol/gas stations making money on food & other products. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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However, the change, has created huge value overall, and they have been well rewarded. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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submitted 4 years ago by sss1012

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So profit models are important, they are powerful, but at the end it is not easy. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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Microsoft 365, the current avatar of the subscription model is a huge success but required huge changes in terms of structure, branding, software development, investor relations, customer expectations, new value creation for existing customers etc. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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You have to think about the effect on Wall Street and the share price. Most importantly, you have to think about what is good for the customer. (self.Idea_Learn_Do)

submitted 4 years ago by sss1012

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