Application of business model innovation for new enterprises

Abstract

PurposeThe purpose of this paper is to study the details of new age digital business using a freemium business model.Design/methodology/approachStudy of the various prospects of various digital business firms like revenues, customer base, share price, ranks. Uses of freemium business model to hold on to existing customers and attract new customers.FindingsInnovative service or product offerings and growth strategy is the base of this business model. So businesses must assess innovation strategy before deciding whether to opt the freemium business model or not. Retaining the existing user and constant addition of new users are the founding stone of the freemium business model. So, the value offerings have to be well perceived by the customer so that switching costs will be increased for them and the customer will remain loyal.Originality/valueAnalyzing consumer behavior with recent analytical tools and techniques such as web analytics, bigdata analytics are required in order to get deeper market knowledge. It is crucial to get the knowledge of recent trends of markets, the perception of customer and customer’s journey mapping in order to run a business with freemium model.