Auction 4#
Auctioning means selling a product or service to the highest bidder. The final price is achieved when a particular end time of the auction is reached or when no higher offers are received. This allows the company to sell at the highest price acceptable to the customer. The customer benefits from the opportunity to influence the price of a product.
Examples: Iconic Cases
How they do it: Amazon Web Services offers a flexible bidding option for computing power called ”spot instances”. Amazon EC2 Spot Instances offer spare compute capacity available in the AWS cloud at steep discounts compared to On-Demand instances. Spot Instances enable customers to optimize your costs on the AWS cloud and scale your application’s throughput up to 10X for the same budget.
Learn more about Amazon Web Services →
How they do it: Lufthansa offers several classes on their airplanes. To upsell customers to a higher class and monetize vacant spots in their business class, the company allows customers to bid for an upgrade a few days before the flight departs.
Learn more about Lufthansa →
How they do it: Google uses an auction process with every search query. The outcome of the auction will be which and in the order ads will show on a a page. Next to factors of how suitable the ad is to the keyword search and the quality of the ad, the bid for this keyword, set by the marketer, will determine the positioning of the ad.
Learn more about Google →
How they do it: eBay pioneered the online auction paradigm. Sellers could list their products for a very low starting bid, which sparked attention from potential buyers. In 2006, Russian billionaire Roman Abramovich was the lucky buyer for a Yacht for around $170 million, put up for auction on eBay and resulting in one of the most expensive auctions of the platform.
Learn more about eBay →
Below, the top industries for the pattern "Auction" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 4 firms using this pattern.
Top Industries
6% of firms using pattern
6% of firms using pattern
5% of firms using pattern
All Industries
Below, the pattern "Auction" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
3 pattern co-occurrences
2 pattern co-occurrences
2 pattern co-occurrences