Case Study

 Essay about Case Study

David Dawei Liu

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Case Study two

Q1. Review Pandora's original business model with its current business model. What's the between " free" and " freemium" revenue types? Pandora's original business model was to provide users with 12 free hours of use of their website articles. Once the 12 hours has become used up, they are going to then become asked to subscribe to Pandora at a rate of $36 monthly for continual access. While, their current business model was created where users can gain access to their on the web radio totally free as long as they will sign up for a free account, but are confronted with ads while streaming. The Freemium style is designed to offer some services to 99% of the customer base and rely on the other 1% of shoppers to pay for superior versions of the identical service. In a business model, " freemium” basically means the standard version of any product or service is offered free to employ, but is only limited to the basics provided, whereas " free” is the product/service is completely cost-free access to the number of material it provides. The revenue is then generated by targeted advertisings and displayed to users whilst they are on Pandora.

Q2. What is the consumer value proposition that The planet pandora offers? Real subscribers of Pandora will not be displayed advertisements and high quality of music while internet streaming. The people who pays for The planet pandora has just about unlimited usage for $36 per year, as the people who are listening to music with Pandora totally free are restricted to only 40 hours of music each month, while subjected to advertisements between songs.

Q3. Why performed MailChimp in the end succeed having a freemium version, but Ning did not? MailChimp was effective because it started with offering free standard tools and provided a choice to up grade the account for a subscription fee to be able to access particular features. As customer's email list grew, people became more likely to activated to the unique features of MailChimp, which was a part of their...

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