Answer to Question #255373 in Accounting for swati

Question

Don Berry runs a news website focused on the sport of hockey. He differentiates himself from his competitors by being the fastest in sharing reactions of sports experts after each game. In order to make it quick and easy for the experts to provide their opinions, he has developed an easy-to-use app where experts quickly record and upload short audio comments from their phone after each game. He charges a monthly subscription fee for his users to access the audio content and he shares a portion of the revenues with the experts which are most popular on his website.

Identify the Business Model, the key Business Strategy, and Operational Strategy for Mr. Berry’s news business.

Answer 1

Solution:

The Business Model used by Don Berry is Subscription Model.

He creates website content which he charges a monthly subscription fee for his users to view.

 

The key Business Strategy is product differentiation. Don Berry differentiates himself from his competitors by taking a different approach to service delivery. He ensures that the reactions of his sports are the first to be shown before his competitors hence improving viewership and sales.

 

The Operational Strategy is a product development strategy. This is where he has developed an easy-to-use app where experts quickly record and upload short audio comments from their phone after each game, which are immediately shared and viewed by his users.