Wednesday, August 01, 2007

Web 2.0 Business Strategy

I was talking with a friend of mine yesterday and he said something that got me thinking. I was talking about an old business model for a company I had a while back and had mentioned that we tried subscription based but that is a hard model and I was left with advertising. My friend said, "well you could have done the Web 2.0 model". I inquired what it was, he stated, "don't charge anything and wait for Google to buy you out." It made me think about the current web 2.0 businesses and how there are some out there that are holding their breath waiting for the call from the big leagues(Google). There are a few companies out there though that may have started off on that road but because of different issues decided to work on turning the company into a business model that didn't rely on Google. To be honest, all business models in technology have some sort of acquisition factored into the exit strategy unless you are large enough to be the buyer, but I see more businesses putting a strong effort on coming out with great technology that businesses and consumers can use while charging an affordable price to make it financially feasible. What does this mean for the Web 2.0 movement? It means that eventually there will be a sifting of businesses and only the ones with a strong concept that are based on needs of consumers and businesses in the long run, will thrive. The rest of the companies will be phased out or acquired to be meshed into the surviving companies.

No comments: