ITM 350 Lecture Notes - Lecture 4: Swot Analysis, Freemium, Candy Crush Saga
28 May 2018
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e Commerce Business Model
The business context sets the scope and goals for requirements gathering and
agreement. The business context is a method to scan/analyze the environment of a
business. The business context this company is using is consumer oriented. This app is
used as consumer oriented which is based on monitoring standards of customer
satisfaction. It focuses on the internal/external needs of customers and tries to reach the
customer needs and expectations related to the product/service being provided/sold by
the business.
GameNet is an consumer oriented business because its goal is to attract people to their
app and play any game you like against your friends/others. This app has pre-existing
games and is compatible with the iOS and Android. Also this app is not just compatible
with Iphone, Android, you can download it on to tablets, and desktop as well. This app is
similar to game center but this app “GameNet” is an app where you can win money, if
you win against people. For example, you can open up any game you want in GameNet
and pick who you want to verse. After picking your game and opponent(s), you bid
money into the game (just like casinos) but the maximum amount of money for
wagering is $1.00. The one who wins the game gets to keep all the money in the end.
For example, if John, Sarah, and Bob all bet $0.50 each to their chosen game
(examples: Temple run, candy crush, or Fun run) and Sarah ends up winning, she will
receive $1.50 and others will get nothing. The target audience for this app are
Millennials (18+) because most millennials are addicted to their phones and are the
most mobile generation, they use mobile devices more than desktop, most engaged,
and involved in social media.
A great business model for this company to use would beg the Freemium Revenue
Model. Freemium is a pricing strategy for a product or service that is typically a digital
application such as games, social media, or web services. These applications are
provided free of charge but later $0.99 is charged for the features and functionality of
the application. Many companies have used this pricing strategy and have been
successful, some good examples are Zapier, Filament Fare, MailChimp, Google Penalty
Checker, FreshBooks, Dropbox, and HootSuite. We chose this model because our
product is easy to use, many people play games, and the variable costs of providing the
product to consumers for free should be low. “Using a freemium strategy can be a very
successful marketing tool, because free features can help attract a user base, and are
more attractive to most consumers than 30-day free trials that require a cancellation
process” (Laudon, C., & Traver, 2017). Using the CPE model, advertisers only pay
when a user engages with the features of the app, such as through upgrading, or when
a user clicks through to a website and makes a purchase or downloads an app. This is
their market strategy, they promote their products/services to attract the targeted
audience by intend to enter the market and attracting customers. So, the app GameNet
will be free to download, but the users will need to bid to play games. Also, this app
would make revenue by upgrading to new features in the app. It takes lots of time to
