GAFA is an acronym for Google, Apple, Facebook, and Amazon. Those companies emerged in the 2010s as the most powerful American tech companies.
It seems that the term GAFA had become extremely popular when France’s publishers and media started to use the term to mean the tech monopolists that control a large chunk of global digital information and markets.
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As of 2017, over ninety billion dollars, which consisted of 86% of Google’s revenues came from advertising networks. The remaining fraction (about 13%) came from Apps, Google Cloud, and Hardware. While a bit more than 1% came from bets like Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X.
Read: Google Business Model and Google Business Strategy
Amazon
Amazon has a diversified business model. In 2018, online stores contributed to nearly 52% of Amazon revenues, followed by Physical Stores, Third-party Seller Services, AWS, Subscription Services, and Advertising revenues.
Read: Amazon Business Model and Amazon Business Strategy
Facebook makes money with an advertising business model. Almost all the revenue comes from targeted advertising. Indeed, Facebook revenue breakdown in 2018 was:
- Advertising (over 98% of revenues): it primarily consists of displaying ad products on Facebook, Instagram, Messenger, and third-party
- Payments and other fees (less than 2% of total revenues): it consists of the net fee received from developers using Payments infrastructure or revenue from the delivery of virtual reality platform devices and others
Read: Facebook Business Model and Facebook Business Strategy
Apple
When looking at the Apple Business Model, it is easy to assume that it is solely a product company, which sells devices that are beautifully crafted. However, there would have been no success for the Mac without its OS operating system. There would not have been iPod success without iTunes. And no success for iPhones without the Apple Store.
Read: Apple Business Model and Apple Business Strategy
Other business resources:
- What Is a Business Model? 30 Successful Types of Business Models You Need to Know
- The Complete Guide To Business Development
- Business Strategy: Definition, Examples, And Case Studies
- What Is a Business Model Canvas? Business Model Canvas Explained
- Blitzscaling Business Model Innovation Canvas In A Nutshell
- What Is a Value Proposition? Value Proposition Canvas Explained
- What Is a Lean Startup Canvas? Lean Startup Canvas Explained
- What Is Market Segmentation? the Ultimate Guide to Market Segmentation
- Marketing Strategy: Definition, Types, And Examples
- Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
- How To Write A Mission Statement
- What is Growth Hacking?
- Growth Hacking Canvas: A Glance At The Tools To Generate Growth Ideas
The post What Is GAFA? Inside The Multi-Platform Ecosystem That Dominates The World appeared first on FourWeekMBA.
