Wikipedia’s Business Model

Nyi Mas Dhyandra Nur Annisa, 2401989770

Wikipedia’s Business Model is a good example of this. Experts differ on the true definition of a Business Model, with some stating that it is “the story that explains how an enterprise works” and others such as Harvard Business School’s Clay Christensen stating that a Business Model should include four different elements: a Customer Value Proposition (CVP), a Profit Formula, Key Resources, and Key Processes (CVP), among others.
Let us now turn our attention to our primary subject, Wikipedia. According to Wikipedia, it is the world’s biggest free online encyclopedia that also enables users to modify any page they like. Jimmy Wales and Larry Sanger had the notion to create an encyclopedia that would not be updated by a single person but would instead be edited by hundreds of people who would contribute to it. Only two days after registering the domain name, Wikipedia published its first modification on the 15th of January 2001. Although it was originally named Nupedia, the name was eventually changed to Wikipedia in honour of the Hawaiian phrase “wiki,” which means “rapid” or “super-fast” and is pronounced “wiki wiki,” meaning “wiki.”
In addition to hosting Wikipedia and other free knowledge projects developed by the Wikimedia family, the Wikimedia Foundation is a non-profit organization. The Foundation was created as a 501(c)(3) non-profit organization in 2003. There are 13 projects being administered by the foundation, which are separated into five categories: Reference, Collections, Technology, Guides, and Collaboration. The projects are grouped into five categories: Reference, Collections, Technology, Guides, and Collaboration.
Reference\sWikipedia
“All of the world’s knowledge” is the title of the encyclopedia, which is written in 300 different languages.
In the form of Wikibooks, a collection of free electronic book resources that includes textbooks, annotated texts, instructional guides, and manuals, among other things.
Wiktionary is a free online dictionary that supports over 170 languages.
Wikiquote is an online collection of quotes that have been sourced.

Collections
Wikimedia Commons is the world’s biggest free-to-use collection of pictures, photographs, drawings, movies, and music, with over a billion items available for download.
Wikisource is a collection of source texts and historical materials that are available under a Creative Commons license.
Learn about Wikiversity, learning tools, learning initiatives, and research that may be used at all levels of education and in all sorts of settings.
Wikispecies is a taxonomy database that includes extant and fossil representations of the Animalia, Plantae, Fungi, Bacteria, Archaea, Protista, and all other forms of life on the planet.

Technology
Wikidata is a centralized repository for structured data used by Wikimedia projects.
MediaWiki is a wiki software that is free and open-source, and anybody may use and contribute to it. Wikimedia projects are created on top of the Wikimedia platform.

Wikivoyage is a collaborative effort whose goal is to offer the world’s most comprehensive, free, and up-to-date international travel reference.
Fact-checked and peer-reviewed stories may be found on Wikinews, a free content alternative to commercial news sites that provides free material.

Coordination and organizing chores are carried out via the Collaboration Meta-WikiProject, which serves as a central centre for all of them.

The Business Model Canvas created by Wikipedia (BMC)

So, how does Wikipedia generate revenue? Merchandising and contributions were the primary sources of money for Wikipedia, as seen in the Business Model Canvas above. As stated by the foundation, the average gift is $15, and in many countries, donations are tax-deductible, which encourages individuals to give even more money. Wikipedia is very aware of who its target audience is, and they have a clear objective in mind, which is to create a free online encyclopedia to benefit the public. The issue that may arise next is: how does Wikipedia intend to spend the funds? The response is that 100 per cent of the profits are used to support Wikipedia, as well as the other projects supported by the foundation. Support for the website, awards and grants, administrative and governance, and fundraising are some of the sources of expenditures for the organization.

References

Cuofano, G. (n.d.). How Does Wikipedia Make Money? Retrieved from fourweekmba.com: https://fourweekmba.com/how-does-wikipedia-make-money/

Johnson, M. W., Christensen, C. M., & Kagermann, H. (n.d.). Reinventing Your Business Model. Harvard Business Review, 57-68.

Masanell, R. C., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review.