1. DIGITAL BUSINESS MODEL PREPARED BY STEVEN RAJNI RAJNEET VIRAL TRADE ME

2. TABLE OF CONTENT  Business Background  Revenue Analysis  Cost analysis  Value Preposition  Recommendations

3. BUSINESS BACKGROUND  Trade Me is a web based marketplace and categorized advertising platform in New Zealand.  Transactions range from bargains to fixed priced sales for new as well as used commodities.  It has exposure to a broad cross-section of the New Zealand market, its motive is to earn money through charging fees on services and by providing advertising platform.  It has businesses which operate in the retail, property, motor vehicle, job hunting, insurance, travel and accommodation, dating, advertising and financial services sectors of the economy.

4. DIGITAL BUSINESS MODEL REVENUE MODEL DIGITAL TRIBES VALUE PREPOSITION

5. DIGITAL TRIBES  Buyers  Sellers  Advertisers  Consultants  Potential customers who visit the website

6. REVENUE ANALYSIS REVENUESFISCAL 2014%FISCAL 2015%+/- General Items64,7923663,48032-1,312 Classifieds85,59147.599,63550+14044 Other29,72116.536,57918+6858 Total180,104199,694 Unit: 1,000 NZD Trade Me annual report, 2015

7. GENERAL ITEMS 1.1 Listing Fees = Insertion Fees 1.2 Premium Fees 1.1 Success Fees High Volume Listing Fees: 10c Trade Fees: for large Professional Sellers Usage Fees: usage of Gallery tools, etc. Service Fees: for Stores of Business Sellers Completed Transactions

8. GENERAL ITEMS Online Marketplace Business

9. Three classified advertising sites: Jobs Motors Property Listing Fees: Basic Premium SEEK CARSALES REALESTATE CLASSIFIEDS

10. OTHERS Advertising Travel (Holiday Houses, Travel bug) Pay Now Payment Gateway Online Dating (Find Someone) Online Insurance Comparison (Life Direct, Trade Me Insurance)

11. COST ANALYSIS COSTFISCAL 2014%FISCAL 2015%+/- Cost of Sale7724151096717+2% Employee Benefit Expenses 24629482884245-3% Web Infrastructure Expenses 3176640896 Promotion Expenses736014943414 Other8496161113517+1% Total5138564467 Unit: 1,000 NZD Trade Me Annual Report, 2015

12. COST ANALYSIS COST OF SALES: Domain cost, Web hosting cost, Maintenance, Fraud Prevention, Data analytics EMPLOYEE BENEFIT EXPENSES: Salary, Medical benefit, Allowances for accommodation, travelling cost

13. WEB INFRASTRUCTURE EXPENSES - Developing new products New web design Innovation PROMOTION EXPENSES – Advertisement to attract more advertisers for website COST ANALYSIS

14. VALUE CREATION ANALYSIS VALUE PREPOSITIONS:  Compelling Content  Convenience  Choice  Connectivity  Customization  Combinations  Contribution  Customer experience

15. IMPLICATIONS THEORETICAL :- - Customer always understand and evaluate the online service experience in comparison and overall level. - Value prepositions are very strong for TRADE ME - For TRADE ME online scenario trust and past experiences plays an important role in deciding customer satisfaction.

16.  MANAGERIAL:- - TRADE ME as a brand is known by customers, quality of services and wide range of options are competitive advantage. - Satisfaction level depends on each experience when first purchase/sell/advertise. - TRADE ME needs to explore about customers preferences about any new changes in the website like options, Services etc. - TRADE ME has to be innovative, more customized, more contracts, well designed products to attract new customers and retain them. IMPLICATIONS

17. RECOMMENDATIONS  To influence various other digital tribes, it needs to improve its web infrastructure by providing more filter option in all categories. For instance, in Property for rent category, it could include a filter for number of tenants.  It can make changes in its Revenue Model by providing option for bargain that Kiwis like rather than Auction system.  Its major cost component is Employees Benefit expenses. To reduce this cost, it could outsource its customer Support service. Given by it through phone calls and emails.

18. THANK YOU