3. Was AOL’s policy to capitalize subscriber acquisition costs justified prior to 1995? Ans: AOL’s accounting policy was labeled aggressive and capitalized its subscriber acquisition costs when its archrival CompuServe didn’t. AOL’s biggest expenditure was the cost of attracting new subscribers and maximizing shareholders’ value: 1. Separate registration numbers and passwords were issued to customers. They cost more than $40 per new subscriber in 1994. 2. AOL aggressively marketed its online
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Your analysis is spot on. It is essential that Netflix rethink their business model this year. Netflix’ greatest asset is also its’ greatest weakness. Netflix has an impressive collection of DVDs accumulated over the years. As the party moves away from DVDs and onto the net‚ they will lose their built-in advantage. As iTunes‚ and possibly other online competitors‚ fills in their catalog‚ there will be shift to online distribution. Netflix’ titles will be in an older static non-HD technology‚ where
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with other business models‚ Pandora has successfully implemented the freemium business model in which 99% of its users receive a free service and 1% of the users pay for premium services. This business model is not appropriate for every type of business but can be profitable for some types of businesses with a planned implementation process and a clear understanding of customer values. Analyzing the success of Pandora provides information on the necessary requirements in order for business to earn
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1. Executive Summary Selling online can help your business reach new markets and increase your sales and revenue gains. Those who are interested in selling to other businesses‚ can use the Internet to find sales leads‚ announce calls for tender‚ and to offer products for sale. Searching for products and services online can save time and money by allowing to find the best prices without having to do all the legwork. You can use the Internet to find new suppliers‚ post buying requests or search for
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174 Case Study 2 Q1. Compare Pandora’s original business model with its current business model. What’s the difference between "free" and "freemium" revenue models? Pandora’s original business model was to provide users with 10 free hours of access to their website contents. Once the 10 hours has been used up‚ they will then be asked to subscribe to Pandora at a rate of $36 per month for continual access. Whereas‚ their current business model is designed where users can access their online radio
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Case Analysis: Minit-Lube Discussion Questions Directions: Read the case and then answer each question in short paragraph form. A substantial market exists for automobile tune-ups‚ oil changes‚ and lubrication service for more than 250 million vehicles on U.S. roads. Some of this demand is filled by full-service auto dealerships‚ some by Walmart and Firestone‚ and some by other tire/service dealers. However‚ Minit-Lube‚ Mobil-Lube‚ Jiffy-Lube and others have also developed strategies to accommodate
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Bi Describe the terms and conditions of your employment as set out in your contract of employment or employment agreement. Headings + brief description Bii Describe the information which needs to be shown on your pay slip/statement. The following pieces of information must be shown on a pay slip:- Name Address National insurance number Tax code Deductions to pay NET PA Tax code Employment number Biii Identify TWO changes to personal information which you must report to your
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Unit 2: Health and Social Care Values Task 2B Confidentiality Confidentiality Is vital as it protects a individual from personal information being shared. Trust is really important between the service user and the service provider. It depends on whether the user is confident that the personal information will be kept confidential. An example of confidentiality in a health and social care setting is adhering to the data protection act which means that any data that is related
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deliver in a timely manner -- or at all. This is one of the major problems why consumer is turning against Groupon. What Groupon should do is to minimise the amount of voucher sold per business‚ as not all can fulfil what is stated in the internet. Groupon should firstly identify and communicate with that said business and find the best strategy or method to handle the customer. A small muffin shop with four employees can’t handle 500 orders a day. That is absurd‚ it’s like Groupon is milking out
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By Wendy –Zara exericse 1 Q5. Who are the customer ? The target market is broad‚ women‚ men‚ children that likes fashion and is sensitive to fashion. Q6 .Who are the customers‚ and what product/ service attributes do they consider important? The target market is very broad‚ Zara do not define their target by segmenting ages and lifestyles like what traditional retailers are doing. Its target market is working in big cities‚ with mid range income‚ a young‚ educated person that likes
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