Nice post Prasad. Wikipedia is such an interesting innovation. My favorite part of the business model is that the site attracts university professors, among the most educated people in the world, to share their knowledge for free with the unappreciative masses. I wonder what motivates Wikipedia editors to contribute to the website? It seems like a lot of work for very little reward. I’m surprised that a for-profit competitor hasn’t entered the space and poached editors with a freelance or “get-paid-for-your-contribution” model. Wikipedia would make a great HBS case for understanding human incentives and motivation. #eveythingbecomesLEAD
Great post Preeya!
It’s amazing that the FT is still profitable and growing. I agree with Alex’s point; targeting upper-middle class readers has probably been a nice tailwind, particularly for their subscription revenues. After reading this, I was surprised that the FT is still getting most of its revenue from subscription fees and display advertisements. From a monetization standpoint, this space seems ripe for innovation. I’m not sure what innovation might look like, but I think our Facebook case was an interesting preview (targeted lead generation, tracking user movement across the web, etc.). This would be a fun business model to track several years from now.
Thanks for the post Andie! This is definitely a fun business.
It’s interesting that IKEA sources its designs through freelance designers. I wonder what that means in practice? This may just be the cynic in me, but it sounds like a way for IKEA to underpay designers. Given how subjective fashion and design can be, their freelance model probably allows them to pick and choose which design ideas they like and which ideas they dislike. This way, they only pay for good design ideas without paying for bad ideas. If IKEA held salaried designers on staff instead, they’d be paying for all their designers’ ideas, whether IKEA uses them or not. Given the high cost of Swedish labor, this makes great business sense, but I wonder if there are ethical implications.