Free vs. Open: What Fitness Apps and Fortune 500s Teach Us About Business Models
Ever wonder how free apps like Strava make money or why Apple charges developers to play? This breakdown of free and open business models illustrates how companies, ranging from garage startups to corporate giants, monetize, engage, and plan for the long term.
Business models are necessary for companies to survive and thrive. This paper will focus on the free and open business models. To effectively discuss and compare them, it will expand on the following topics: economic and revenue mechanisms, customer and community engagement, and long-term sustainability and impact. Regarding actual companies, Strava and Strong use the free business model, and Proctor & Gamble and Apple’s App Store use the open business model (Learning et al.). These companies will continue to be discussed in the sections below...
