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Hotmail’s Business Strategy Case Study

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Hotmail’s Company Overview


Hotmail is a web-based email service. Its services include Hotmail, MSN, Messenger, SkyDrive, and Windows Live as well as provision for photos, slideshows, calendars, and events. Hotmail was formerly known as MSN Hotmail. It was founded in 1995 and is based in Redmond, Washington. As of December 31, 1997, Hotmail was acquired by Microsoft Corporation.

www.hotmail.com

Country: Washington

Foundations date: 1997

Type: Subsidiary

Sector: Technology

Categories: Software


Hotmail’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: provides access

Functional: organizes, simplifies, connects


Hotmail’s Related Competitors


Pokemon Go FireEye Oracle IBM The Ottawa Hospital Waze SourceForge

Hotmail’s Business Operations


Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Digitization:

This pattern is based on the capacity to convert current goods or services into digital versions, which have several benefits over intangible products, including increased accessibility and speed of distribution. In an ideal world, the digitalization of a product or service would occur without compromising the consumer value proposition. In other words, efficiency and multiplication achieved via digitalization do not detract from the consumer's perceived value. Being digitally sustainable encompasses all aspects of sustaining the institutional framework for developing and maintaining digital objects and resources and ensuring their long-term survival.

Freemium:

Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.

Network builders:

This pattern is used to connecting individuals. It offers essential services for free but charges for extra services. The network effect is a paradox that occurs when more people utilize a product or service, the more valuable it becomes.

Why Hotmail’s Business Model is so successful?

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