Businessmodel of Active Network

Customer Segments

Active Network provides a range of software-as-a-service solutions to a range of commercial and institutional clients, primarily those involved in the organisation of physical recreation and sporting activities. The Company can organises its clients broadly into the following categories:

• Consumers, comprising general consumers who have an interest in sports and exercise;
• Sports and Recreation, comprising community centres, non-profits, government bodies, and commercial operators that organise and manage sporting activities and leagues and community events;
• Ski and Attraction operators, comprising commercial operators of skiing and other sporting attractions;
• Race Events, comprising non-profits, community organisations, and sporting bodies that organise and operate race events;
• Camps, comprising dedicated camp operators and community organisations; and
• Education, comprising music and arts education organisations and institutions to which the Company offers software to streamline class registrations. Active Network lists a number of its clients on its website, including Notre Dame Sport Camp, YMCA Metro Los Angeles, Granite School District, Vineman Ironman, Bayside Broncos Pop Warner, and Sedona Arts Centre.

Active Network serves an international client base across markets North America, Europe, Asia Pacific, and Africa.

Value Propositions

Active Network provides value to its clients in the following ways:

• Its industry standing and reputation, with the Company established as a leading provider of software solutions for sporting and recreational event operators, as well as offering some of the most popular fitness apps for mobile device users;
• Its varied portfolio of products and solutions, with the Company offering a broad range of management and administrative software solutions – including dedicated race management and event management products – as well as mobile apps, and digital media and advertising services;
• Its international reach, with the Company offering its products and services to customers across North America, Europe, Asia Pacific, and Africa, maintaining operations in Hong Kong, South Africa, Canada, the UK, and Singapore; and
• Its accessibility and flexibility, with the Company offering a range of flexible and scalable software solutions that are easily accessible to clients via the Company’s cloud-based platform. ### Channels

Active Network operates a website at www.activenetwork.com, through which it provides information on its various solutions, product offerings, and international operations. While the Company does not operate an online sales portal, its enables customers to register an interest in particular solutions through an online contact form.

Once software solutions have been purchased, customers can access them online through the Company’s cloud-based platform. Active Network also offers a number of mobile apps that can be downloaded by customers via the iOS App Store and the Google Play Store.

Active Network makes its sales primarily through its in-house direct sales force, which is organised geographically. The Company’s sales personnel operate out of the Company’s international network of sales and administrative offices across North America, Asia Pacific, Europe, and Africa, including locations in Singapore, Hong Kong, South Africa, Germany, Canada, the US, the UK, and Australia.

Active Network additionally markets its products and solutions through a network of affiliates. The Company, however, does not appear to utilise the services of third party resellers or distributors.

Customer Relationships

Active Network does not sell its software solutions to clients on a self-service basis. Once purchased, however, customers able to utilise the functionality of the Company’s products independently without further interaction with sales and service personnel. In contrast, the Company’s consumer-focused mobile applications can be downloaded on self-service basis through the iOS App Store and the Google Play Store.

Active Network offers a more personalised service to its commercial clients through its in-house sales force. These direct sales personnel consult closely with clients in order to ensure that they are offered the right solutions that are scaled specifically to fit their individual needs and circumstances, tailoring their solutions where possible. The Company seeks to establish longstanding relationships and recurring business from its clients.

Active Network offers ongoing support services, with clients able to contact the Company over the phone and online in order to receive personalised assistance. The Company also offers a range of online resources – including tutorials, user guides, case studies, and articles – which can be accessed independently.

Additionally, Active Network operates social media accounts with Twitter, YouTube, Google+, Facebook, and LinkedIn, through which it is able to publish company updates and interact directly with clients.

Key Activities

Active Network provides a range of cloud-based activity and participant management, and registration software solutions to a range of commercial and institutional clients, including non-profits, camps, government bodies, race event organisers, and commercial entities.

These products are designed to increase event management efficiency and connect activity and event organisers with participants worldwide. Active Network also offers a range of digital media and advertising solutions, and is engaged in the development and provision of fitness and exercise management apps, including the popular Couch to 5K, 5K to 10K, LivePass, and Meet Mobile.

Active Network serves an international client base, maintaining an operational presence across markets in North America, Asia Pacific, Europe, and Africa.

Key Partners

Active Network works in conjunction with a range of companies and organisations throughout the development and delivery of its products and solutions. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of technologies, services, and equipment that support the Company’s development and implementation of software solutions, as well as vendors to which certain functions can be outsourced;
• Sports and Development Partners, comprising a range of sports and recreational organisations with which the Company collaborates on the development of effective management software solutions;
• Affiliate and Marketing Partners, comprising a range of websites and online businesses that promote the Company’s products and solutions and drive traffic to the Company’s website in return for commissions; and
• Strategic and Alliance Partners, comprising a range of market leading companies with which the Company works on joint marketing, branding, and development projects. Active Network has a number of partnerships in place. This includes a technology partnership with USA Triathlon, a delivery partnership with Red Frog Events, and a strategic partnership with RaceHQ.

Key Resources

Active Network’s key resources are its intellectual properties and proprietary technologies, its products and solutions, its IT and communications infrastructure, its sales and marketing channels, its partnerships, and its personnel.

Active Network utilises a range of proprietary technologies in its products and solutions. Searches of records published by the US Patent and Trademark Office identified a number of patent applications in which Active Network is named as applicant or assignee, including applications entitled ‘Enterprise wireless device usage reporting’, ‘Limiting data exposure in authenticated multi-system transactions’ and ‘Systems and methods for augmented reality’.

Active Network additionally owns and or leases a number of physical properties around the world that comprise the Company’s international network of offices.

Cost Structure

Active Network incurs costs in relation to the development of its technologies and solutions, the maintenance of its IT and communications infrastructure, the procurement of professional services, the operation of its sales and distribution channels, the implementation of marketing and advertising campaigns, and the retention of its personnel.

Revenue Streams

Active Network generates revenue through the development and provision of various management and registration software solutions targeted at companies and organisations active in the fitness, sports, and recreational fields. The Company also derives revenue through the provision of various digital media and advertising services.

Active Network is a privately-owned company and is not obliged to publish its financial results online. As such, the Company’s recent revenue figures are unclear. Reports from 2015 suggest that the Company generates annual revenue in the region of around $400 million.