IS Assignment] Foursquare

The Present of Foursquare

Foursquare makes a money by gathering data from their users, recreating information from these data, and finally selling the information to customers.

Gathering Data and Recreation Information from Users
1. Who are users?
Main users of Foursquare are people who have smartphone such as iphone, android, blackberry, and palm. In short, people who have a cell-phone with a web browser. Also people who have a normal cell-phone can be users in US because they developed the technology called SMS shortcode.

2. What value do they provide to users?
Foursquare tries to be friend-finder and social city guide for users. They provide information necessary users to explore user's neighborhoods such as Friend's whereabouts, good places to meet, and restaurant reviews.

3. How can they provide this value to users?
Foursquare provides this value through a mobile phone application. Users provide their data about their whereabouts and are given information such as where their friends are and recommended places to go through this application.
Their service for users largely consists of four parts. The first is "CHECK-IN TO PLACES". If I tell them my whereabouts, they tell where my friends are, recommend good places to go and things to do nearby, and tell my friend's favorite places. This service is a back-bone of Foursqure service for users as they gather user's data and recreate information from these data through this service. The second is "SHARE YOUR EXPERIENCE WITH FRIENDS". They encourage users to create and share to do list nearby. This service also gather user's data and recreate information. The third and final service is "EARN POINTS AND UNLOCK BADGES" and "BECOME THE MAJOR". Users earn points whenever they check-in and are provided discount tickets. These benefits are other tool to attract users.
How many users use their service is vital to Foursquare as users provide the raw data changed to valuable information.


Selling the Information to Customers
1. Who are Customers?
Foursquare's customers largely consist of three parts; small, privately owned stores and restaurants; brands with retail chains, such as Tasti D-Lite; and huge multinational marketers such as Pepsi***.

2. What values do they provide to customers and How do they do it?
Foursquare provides bar or restaurant's owners new ways to advertise their shops and to connect with their customers. To brands with retail chains or huge multinational company, Foursquare provides information on people's spend patterns, which is vital in marketing. In order to do so, Foursquare analyses huge data obtained from their users and finds out valuable information.



The Future of Foursquare
1. Can users increase?
I think the probability of increase in users is high as the smartphone market is fast growing and information and benefits Foursquare provides is enough to attract new users.

2. Can customers increase?
I think big customers such as Pepsi will increase rapidly as the information Foursquare provides is essential and valuable to them. Marketing is very important in 21 century market. Marketers should know their customer behavior and consideration when they purchase something. This is the first step all marketers should do and the most important step. Foursquare can information necessary in this step.

Foursquare is rapidly growting and this growth rate will be countinued becouse of two basic reasons I mentioned above.

* User: Someone who use Foursquare's service for free
** Customer: Someone who pay money to Foursquare
*** http://www.businessinsider.com/foursquare-plots-its-business-model-2010-2#ixzz0oLuJDMLD. 2#ixzz0oLu9h4Ht