Instagram and Facebook use the ‘ad-supported’ model: They offer free social networking services and use user data to serve personalized advertising.
As I know from other sources, the DVC (Digital Value Creation) stands on three main areas: Experience, Relationships, and Evolution.
Experience: according to this area, customers evaluate their experience in two levels – emotions (how does this experience make me feel?), and meeting certain ‘utilitarian’ needs (is this experience solving my problem?). In my POV, the both social networks – Instagram and Facebook (Meta), have high points for user gratification in both levels of the Experience area.
Relationships: this area is about trust between an organisation and a customer. In my POV, this area is the weakest part for both organisations – Instagram and Meta, since they make business on personalized advertising: they manipulate/share their users’ data, and there’s no trust to be built.
Evolution: this is about how an organisation evolves through strategic movements in an uncertain environment. Meta and Instagram have best management teams and have been doing business for decades. They do this through constant evolution, so they are good in this area as well.
Resources:
- https://www.europeanbusinessreview.com/dvc-framework-accelerating-digital-value-creation/
- https://morethandigital.info/en/11-digital-business-models-you-should-know-incl-examples/
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