Experimenting Ensures a Constant Stream of Innovations

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Experimenting Ensures a Constant Stream of Innovations

The economies of scale and network effects of platforms are so great that they will continue to . Expand their positions in the coming years. This provides advertisers with many opportunities, but also brings with it the necessary dilemmas and challenges. This is logical, because the place you occupy as a retailer within. The total distribution chain has undoubtedly become more important online than ever before. One of the major challenges is that the transition from a less flexible model. To a network orchestration model is often hugely capital intensive at first. Another important challenge for retailers who are themselves active within these platforms is to offer the distinction within their proposition.

Ensures a Constant Stream of Innovations

That is of great importance. After all, many of these platforms focus on standardized products, so that price quickly becomes important. As a result, a continuous competition can break out precisely in that area. While dependence on the platform has already developed in some cases. 14. Continuous optimization of business models with data Many large, international giants work on an almost scientific way every Kenya WhatsApp Number List day to optimize their business model. Not only do they have the most data at their disposal, but they also know how to translate this data into improvements within their. Business model through a constant stream of new experiments. That is one of the reasons why the largest parties are getting bigger and bigger and small or medium-sized parties are already struggling to achieve similar growth percentages.


A Constant Stream of Innovations

Image source: BMI lab A shame, because in 2022 simply performing A/B tests to improve the conversion rate will no longer be enough. There are more variables that can have a major impact on the income statement. Testing prices is a good example of this. By testing with price elasticity, many companies can make a big impact not only on the growth of their turnover. But certainly also on the growth of their profitability. Experimenting ensures a constant stream of innovations Not unimportant to mention is the fact that this way of experimenting can also ensure a constant flow of new innovations and product combinations. Amazon masters this game like no other. With Amazon Prime, Amazon does not have to earn so much from the streaming of series and movies, but the membership can also be earned back by the fact that these users order more from Amazon itself.

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