Ivey Publishing
Jiemo Net: How to Position a Profit Model
Product Number:
Publication Date:
Revised Date:
02/07/2017 (Data)
12 pages (7 pages of text)
Product Type:
Case (Field)
Jiemo.net (Jiemo), an Internet-based study-abroad consultant agency headquartered in Dalian, China, began in 2010 by providing application support to customers who wished to apply to study abroad. In 2014, the company discovered that profit existed in providing services to students once they had been accepted to study abroad. Jiemo changed its traditional pricing model, used social media marketing, and collaborated with other agencies to establish an ecosystem for these students. The result was that Jiemo acquired customers by providing free Internet-based application support (“front end” services), and reaped profits by providing services that those customers needed once they were studying abroad (“back end” services). However, as Jiemo grew, the designed profit model was not supporting growth. Jiemo had to modify the model. Should it improve the back end services to reduce costs and gain more profit from existing customers, or explore the needs of potential customers and add new services?
Learning Objective:
The case is suitable for MBA, EMBA, and graduate e-commerce students. The case provides an opportunity for the students to understand the following theoretical and practical key points:
  • How a business ecosystem helps to drive customer traffic
  • The relationship between a business ecosystem and stickiness management
  • How customer traffic is translated into stickiness
    Entrepreneurship,  International,  General Management/Strategy
    Educational Services
    China, Medium, 2016
    Intended Audience:
    $4.25 CAD / $4.25 USD Printed Copy
    $3.75 CAD / $3.75 USD Permissions
    $3.75 CAD / $3.75 USD Digital Download
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