A Case Study on Business Model of PWLAN Advertise and Hardware Manufacture

The Business model is an approach to creating incomes and benefits for enterprises. Each business model, which is incapable of being conceptualized by the specific theory, is regarded as valuable experience representing how enterprises succeed and survive in business. The practical managers can accumulate various aspects of experience and gradually develop their own business models through case studies. One of hardware manufacturers of wireless access points is determined as the research subject. This manufacturer has presented valued-added services in which a framework of internet advertising involved in the hardware of wireless access points is proposed. Due to this framework, hardware manufacturers, purchasing firms, and advertisers can reach win-win situation. In this framework, purchasing firms (e.g. Starbucks, MacDonalds, etc.) can display advertisement provided by delegated hardware manufacturers in their purchasing wireless access points in order to serve free wireless access for customers. Moreover, purchasing firms can voluntarily display advertisement given by customers based on a mechanism of hardware equipment. The advertisers are allowed to display any advertisement in specific areas so that they can accurately aim at specific market segment. The hardware manufacturers not only help purchasing firms add extra profits and increase sales, but also expand the business from pure manufacture to the valued-added services. The case study of “expansion of manufacture to valued-added services” is considerable precious. We believe that this paper can offer practical managers and theoretical researchers valuable arguments of business models.

Project ID:PF9907-8107
External Project ID:NSC99-2410-H182-019