week 5

Defining your revenue model is essential, but you also need to have a good business model and plan that makes it hard for competitors to compete with you.

Why do you need a business plan?

 

Business model is the method which is used by the organization to sustain itself. Nowadays, business models are widely used by many kinds of industries. Nevertheless, business plane is essential for a business or an organization, business plan is an opportunity for them to develop strategically. The business plan is a convictive document for investors and banks to obtain support, when the business requires financial resource. Business plan also is a roadmap for business to become successful, which assist the business to achieve the long term business goal by provide the direction, objectives and manage possible bumps. Moreover, business plan gives a sense of control for business. And it help you to clarify thoughts and understand your business.

 

Advertising

Why advertising is failing on the Internet?

 

Because of three reasons, advertising is failing on the internet, which are consumers do not trust advertising, they do not want to watch it and they do not have any requirement for advertising.

 

Consumer hold the opinion that the information about the product and service is lower quality in advertising than the information from a rating. Therefore, the adverting loss the trust of the customer.

 

It is an annoying thing that be interrupted, when you watch TV or movie. However, most of advertising exist the TV or movies and interrupt the audiences. Hence, consumer and audience w\do not want to watch them.

 

Customers want to get information from rating sites rather than advertising, hence they do not need the advertisement.