New business model, meet overnight sensation. Sameer Singh on Pokemon Go:
Pokémon Go finally began rolling out in a few countries this week. At this point, I can safely say, it has turned out to be one of the biggest viral hits in recent years. While the Pokémon IP played a significant role in the game’s quick uptake, I believe that Pokémon Go’s status as the first accessible augmented reality game at scale will be much more important to its long-term success. There are multiple elements of business model innovation at play here, far deeper than a simple extension of pre-existing IP
This is a big deal.
To put it simply, business models have two key components — 1) the value proposition communicated by the product, and 2) a method to generate revenue based on this value proposition. On the surface, Pokémon Go’s value proposition appears simple — a way for Pokémon fans to enjoy the franchise on their mobile devices. But the scale of mobile is an order of magnitude larger than handheld consoles, which means that Pokémon Go needs to expand its reach beyond existing fans to reach its true potential. On a deeper level, its value proposition is to explore and experience the real world with a layer of fantasy.