Analysis of Chinese LBSN business models based on four-box approach

Abstract

Location Based Services (LBSs) have gained great attention, both in terms of research and business development, due to their enormous potentials of future development. LBSs have been widely applied to emergency responses; vehicle and transportation monitoring; navigation assistance; tourism guidance and etc. Especially, the emergence and enhanced functions of smart phones and fast expansion of wireless network connections have enormously boosted the development of mobile LBSs, supplying the end users with more stable and comprehensive services. Location based social networks (LBSNs have had significant impacts on the LBSs market. The business models of LBSs, especially those of the LBSNs have seldom been studied. In addition, there are only limited profitable business models for LBSNS. The LBSNs market is therefore monotonous with low market entry barriers although with active user rates. Aiming at better understanding the business models of LBSNs, this study is geared towards investigating business models of the Chinese LBSNs market from the service providers’ perspective. Case studies of some LBSNs companies are carried out to examine the relationships between their performances and their business models. Successful business models have been developed for the Chinese LBSNs market although further development of such models are still necessary to resolve some of the problems.