Business models and strategies

Abstract

Introduction We have already reviewed the various segments that make up the wireless value chain, looked at various players in those segments, and discussed why it is so important to have a healthy ecosystem of players and service providers. In this chapter we will review another key element of wireless business – the business models and strategies. With the advent of wireless data applications and services, the old value chain has been disturbed with the emergence of a new breed of players providing valuable services to the industry; for example, content providers and game developers who did not have a place in the chain before constitute an important component of the ecosystem today. In this chapter, we will also look at the success factors behind i-mode, the service that changed the landscape of wireless Internet applications and services forever. We will also clear up some misconceptions regarding the success factors of i-mode that are common amongst analysts and the press. We will look at various business models, their advantages and disadvantages and how various players open the revenue stream for themselves. Wireless applications and services are being used extensively in situations that require personalized and/or time-critical information. Location-specific transactions are also becoming possible now, opening up a new range of commercial opportunities. Broadly speaking, wireless data services will embrace infotainment services, lifestyle facilitators and transaction-based services, with financial services and travel and transportation being the most obvious industry segments to go on the wireless data world.