GAFAM Business Models

Google is based on a hidden business model pattern, which means that it’s not the user who pays for the service. [...] Companies pay to advertise on the search engine and be seen first by the users who make up their target audience.

Apple makes money by designing, manufacturing, and selling smartphones, tablets, personal computers, wearables, and accessories. [...] They also generate revenue by offering subscription services [...]. The company recently announced its plans to start hardware subscription services for its products.

The great revenue stream of Facebook is the targeted advertisement, [...] through information the network collects from its users. [... I]t wouldn’t make any sense for Facebook to sell its users’ data [...], as the platform would be handing over its greatest differential.

For the buyer, it is comfortable to know that Amazon will always bring a reasonable and competitive price in all fields and products. And for sellers, it’s convenient to be sure they can easily display their products on the website and make sales on all continents on Earth. Nowadays, Amazon is recognized as the largest retailer on the planet.

Since Microsoft provides systems and software for both entertainment and business, its core operations involve sale, distribution, and support for those solutions. But its business model actually encompasses a few types, [... including]: Razor and Blade; Lock-in; Freemium; Subscription; Hidden Revenue and Ingredient Branding