Thursday, July 19, 2012

Content Services and Sharing Service Deliveries

Differentiation is one of key strategies to attract customers from other competitors. How to differentiate is another concern. By developing sophisticated content services, a business firm can satisfy more customers who pay a same premium, but now the latter can access to more services. To create economic programs or affordable services, the business firm also consider offering so-called sharing services for a same price or adding an small sum to a first primary customer' charge. The more customers explore such data pools of services the more efficiency and productivity the business can maximize its invested IT structures.

If the company knows its architecture can handle 1 million customer per second, it will consider how to optimize so-called sharing service packages in which each added customer costs nothing, but generates substantial revenues. For instance, a mobile phone service provider has its network allowing 20 million subscribers accessing its data channels per second, but the current total of subscribers is 10 million, generating the total revenue of $1 billion. Now the company wants to attract more subscribers to the data accessing service by charging an extra dollars on each added subscriber to the first primary account holder. Such strategy can save the company's capacity and generate new revenues with an extra of $200 million on 5 million subscribers to 7 million subscribers, excluding the current total of 10 million subscribers.