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However, while their business is fairly new and somewhat unknown, there is still plenty of knowledge that we have on them. So, to begin our analysis of their business model, we first need to define what a business model is. A business model is defined by the books as “a set of planned activities designed to result in a profit in a marketplace” (Traver p 66). Since Chegg.com is a website, it would actually be using what is known as an e-commerce business model. This means that Chegg.com uses the World Wide Web to its advantage to reach people in universities across the nation.
When reviewing the business model of any company, there are “eight key elements” that should be reviewed and analyzed. The eight components of a business model are: Value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. These eight elements help describe how a business like Chegg.com will succeed and make profits, as well as continuing their business into the …show more content…
(Traver p 67). As explained above, Chegg.com services is generated toward mostly college students (others can rent as well but most rentals are textbooks, which would defeat the point for people who just want a general info book or a book to read for fun, as they could go to a library for that) . This means that their marketplace is mostly the students at universities, especially the ones who need help saving money on textbooks or the ones who don’t want to keep their school books. The size varies as the amount of students in school varies from time to time. School is also seasonal so the size in summer versus the time in fall will vary. Multiply this by thousands of colleges across the U.S. and you have a large market size that goes up and down, depending on when their school …show more content…
Its low prices on textbook rentals alone are its greatest value to its main customers, college students. Its value chain is really how it offers lower prices to college students, it gives a discount on every book (the rental price) compared to the actual cost of the book and then it ships via UPS. It also provides money back guarantees, free return labels, access to quality customer services, and it even provides freebies in their shipments such as pens and notepads! They even add value by planting a tree for every new student who purchases from them. Chegg’s strategy however, is uncertain. With an unknown setup on how they get rid of books once they are outdated, it’s hard to say what happens o old books once they are outdated or worn out(some sources say they sell books, but there isn’t much info on what happens to the old books). With the emerging tablets in the technology world, we will start seeing a lot more e books out there than ever before, possibly making their current business model difficult to continue with. In the present however, to combat some competitors, Chegg is making deals with college books stores to offer their services through campus bookstores. While the bookstores will get some profits from rentals, Chegg will also receive some revenue, as well as expand their presence, become more renowned throughout the nation, and possibly expand their business. Chegg has a few competitors it
When reviewing the business model of any company, there are “eight key elements” that should be reviewed and analyzed. The eight components of a business model are: Value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. These eight elements help describe how a business like Chegg.com will succeed and make profits, as well as continuing their business into the …show more content…
(Traver p 67). As explained above, Chegg.com services is generated toward mostly college students (others can rent as well but most rentals are textbooks, which would defeat the point for people who just want a general info book or a book to read for fun, as they could go to a library for that) . This means that their marketplace is mostly the students at universities, especially the ones who need help saving money on textbooks or the ones who don’t want to keep their school books. The size varies as the amount of students in school varies from time to time. School is also seasonal so the size in summer versus the time in fall will vary. Multiply this by thousands of colleges across the U.S. and you have a large market size that goes up and down, depending on when their school …show more content…
Its low prices on textbook rentals alone are its greatest value to its main customers, college students. Its value chain is really how it offers lower prices to college students, it gives a discount on every book (the rental price) compared to the actual cost of the book and then it ships via UPS. It also provides money back guarantees, free return labels, access to quality customer services, and it even provides freebies in their shipments such as pens and notepads! They even add value by planting a tree for every new student who purchases from them. Chegg’s strategy however, is uncertain. With an unknown setup on how they get rid of books once they are outdated, it’s hard to say what happens o old books once they are outdated or worn out(some sources say they sell books, but there isn’t much info on what happens to the old books). With the emerging tablets in the technology world, we will start seeing a lot more e books out there than ever before, possibly making their current business model difficult to continue with. In the present however, to combat some competitors, Chegg is making deals with college books stores to offer their services through campus bookstores. While the bookstores will get some profits from rentals, Chegg will also receive some revenue, as well as expand their presence, become more renowned throughout the nation, and possibly expand their business. Chegg has a few competitors it