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Analysis On The Business Model And Enterprise Value Of Internet Enterprises Based On Life Cycle

Posted on:2012-08-31Degree:MasterType:Thesis
Country:ChinaCandidate:L X ZhaoFull Text:PDF
GTID:2279330434972944Subject:Senior management of industrial and commercial management
Abstract/Summary:PDF Full Text Request
From the perspective of industry life cycles, this research analyzes the current life cycle stage of different Internet companies, taking into account their respective business models. The study also explores the future business scope and potential growth of Internet companies, which are associated with the different life cycle stages they have gone through. An analysis is also made to identify the existing market share of these Internet companies in their respective industries, and the possible percentage of replacement by Internet businesses in the future.In this research, an analysis has been made on the theoretical value of respective Internet companies, focusing on three Internet industries, i.e., Internet media/Portals, Online games, and e-Commerce industries.It has been discovered in the research that, when assessing the value of Internet companies with different business models, a corresponding percentage can be identified between the value of the firm and the future scope/potential growth of the industry it is associated with. When analyzing the value of an Internet company, therefore, the researcher should in the meantime take into account the scope of the relevant industry, as well as its reasonable growth rate in future, thereby avoiding irrational or overly optimistic forecasts.The Free Cash Flow (FCF) approach, when integrated with the industry life cycle analysis, can be used as a methodology to assess the value of Internet firms. The information will be helpful to the Internet industry and relevant individuals in the investment market when developing future business plans or investment strategies.
Keywords/Search Tags:Industry Life Cycle, Evaluation of Internet Companies, Free Cash Flow(FCF), Internet Media, Portal, Online Games, e-Commerce, Amazon, Yahoo!, ActivisionBlizzard
PDF Full Text Request
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