5-Biggest Ventures that Sell Services, not Products
Before you understand the five largest commercial companies with very little investment and resources but huge amounts of capital, you must understand the conceptual models that provide the foundation for successful companies. By analyzing leading business models, we divide them into four types:
1. Commodity trading: These businesses are based on the development, trading and leasing of physical assets in the market. For example, Ferrari, Tesla, Wal-Mart, etc.
2. Human resource providers: Such companies tend to hire professional employees with appropriate skills and sell services in the market to generate funds. For example, JPMorgan Chase, United Healthcare, etc.
3. Technology developers: These companies sell concepts, digital assets, or intellectual property related to software, science, and analysis. For example, Google, Microsoft, Statistica, etc.
4. Network builders: These companies create a platform for public interaction that creates value by providing services, connecting buyers and sellers, or establishing cooperation. These companies are unlikely to directly participate in the process or invest in it, but just ensure the quality of communication and earn money from it. For example, Amazon, eBay, Uber, Airbnb, etc.
Let's take a look at 5 companies that have changed their fields based on the network-based business model without their own products:
Amazon: Amazon is one of the largest online companies in the United States. It is the largest retail market and a well-known cloud service provider. Amazon was founded by Jeff Bezos in 1994 as a book seller, but later expanded to include all daily retail products. Later, it also integrated cloud computing services, artificial intelligence and streaming services. Amazon's market capitalization is $1,711.8 billion, making it the third largest company in the world in 2021.
Facebook (Meta): Who knew that a small tool designed by Mark Zuckerberg and colleagues at Harvard University to share information or chat with each other would become the world's largest social community platform. Facebook is one of the most expensive applications on the Internet, and now they are expanding their horizons by merging Instagram and WhatsApp into their circles. With its artificial intelligence, it is also becoming the most powerful platform for marketing brands, selling products and streaming media. Its algorithm will bring the right things to the right people, thereby obtaining a higher sales conversion rate. The newly emerged concept of Yuanjie is considered a revolution in technological methods. Facebook has a market value of US$870 billion and is the clear leader among network builders.
Alibaba: Alibaba is a leading e-commerce, retailer and technology company. It provides a platform for sales, payment and cloud computing services for consumer-consumer (C2C), consumer-to-business (C2B) and business-to-business (B2B) via the Internet. Its initial public offering (IPO) on the New York Stock Exchange raised $25 billion, the highest in history. Alibaba has a market value of US$657.0 billion, ranking 9th in the world in 2021.
Uber: Uber is a company headquartered in the United States, which is a revolution in the fields of mobility, express delivery, food delivery and transportation. It is one of the best ideas of its kind in a business model that uses the resources of others to provide services to customers and act as a mediator. The market value of US$84 billion is undoubtedly an inspiration to entrepreneurs.
Fiverr: Although the market value of this joint venture is not as high as the aforementioned business (about 7 billion US dollars), the influence of this idea is so great that I have to include it as part of this list. Fiverr is an Israeli company that provides a platform for freelancers to create personal profiles that mention small soft skills through their performances. Buyers look for suitable performances and place orders. Fiverr acts as a mediator and collects fees for its services. This idea is so powerful that it enables millions of people to work independently across boundaries.