[How Can the Application of Business Models Assist Management in Avoiding Potentially Disastrous Internet Start-Ups?]

By

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation represent my own unaided work, and that the dissertation has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Abstract

The convergence of the telecommunication industry and the Internet industry results in a transformation of the established value network and the business landscape, creating both opportunities and threats for incumbent players and new entrants. Major uncertainties affecting the telecommunication industry are not technical factors, but rather stem from the evolution of underlying business models. The aim of this thesis is to figure out the business logic behind successful mobile Internet services. Business model is such a broad concept that covers a large rage of aspects. Besides, none of the existing business model analysis framework is universally accepted in the academic world. The present thesis will focus on revenue model study and value network analysis. In this thesis, an analysis framework is developed and applied to the study of mobile Internet services. The framework categorizes all the value exchange into three groups, namely services & goods, monetary benefits and intangible benefits. In addition, a revenue model classification is adopted, in which the revenue models of mobile services are sort out into advertising model, subscription model and transaction model. The study picks out the top twenty mobile Internet services present in the Finnish market on the basis of a set of pre-defined criteria. The results of analysis indicate that generally services adopting advertising model outnumber their counterparts in several aspects. Moreover, a cross-case study among all the advertising model services is conducted, in which the advertising models are further broken down into four variants. They are two-sided market model, double two-sided market model, three-sided market model and hybrid model. Another lesson learned from this study is that the orchestrator of value network varies from case to case, which doesn't necessarily have to be the telecom operator like in the traditional value networks.

Table of Contents

CHAPTER 1: INTRODUCTION7

Background7

Problem definition9

CHAPTER 2: LITERATURE REVIEW11

Value network11

Business Model Approaches to Internet Startup12

Exploring The Characteristics of Business Models for Internet Startup15

Internet startup Business Models17

Common characteristics of low-cost business models20

CHAPTER 3: METHODOLOGY23

Organic development vs. acquisition25

Organic26

Acquisitions26

A call for action27

Key Dimensions for and Designing Internet Startup Business Models28

Ownership Structure28

Central-Decentralization Mix29

CHAPTER 4: DISCUSSION AND ANALYSIS31

Analysis framework31

Value network model32

Services & Goods34

CHAPTER 5: CONCLUSION36

REFERENCES39

Chapter 1: Introduction

In the starting of this section, the backdrop of this study is presented. Then some key study inquiries as well as the objectives and scope of this thesis are described. After that are the procedures taken up, by which the preceding study inquiries are granted responses to. Finally, the structure of this thesis is ...