Businessmodel of Intersection

Customer Segments

Intersection has a segmented market business model, with customer segments that have slightly different needs. Its customer groups are as follows:

• For-Profit Brands – The company provides advertisers the opportunity to promote their products and services on its public media platforms.
• Non-Profit Organizations – The company helps organizations create new products, services, systems, and experiences through its design and technology consultancy. ### Value Proposition

Intersection offers four primary value propositions: accessibility, price, performance, and brand/status.

The company creates accessibility by increasing the availability of various services. Its kiosks provide WiFi and phone service to consumers outside their homes, enabling them to obtain information and communicate with others while on the go. It also offers USB charging ports in case consumers’ device batteries become drained, and a 911 button that they can press in case of an emergency.

The company offers a price value proposition. The services offered through its kiosk are 100% free as costs are covered by allowing advertisers to promote their products/services on its screens.

The company demonstrates strong performance through tangible results. Each kiosk is powered by a fiber optic network that delivers speeds up to 100 times faster than the average public WiFi.

The company has established a strong brand due to its success. It plans to roll out 7,500 kiosks over the next few years, which it estimates will generate $500 million in revenues for New York City. Also, it has won a number of honors, including a Wood Pencil Award in the Urban Living category from D&AD Impact, recognition as a Finalist in the Spaces, Places, Cities category in Fast Company’s 2016 Innovation By Design Awards, and two-time rec ognition as a “Best Place to Work“ in NYC.

Channels

Intersection’s main channels for consumers are its kiosks, while it connects with advertisers and cities through its business development team. The company promotes its offering through its social media pages and participation in summits and conferences.

Customer Relationships

Intersection’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. That said, there is a personal assistance component in the form of e-mail support through its website.

Key Activities

Intersection’s business model entails designing and developing devices that consumers can use and that brands can advertise their offerings on, as well as services for organizations in general.

Key Partners

Intersection’s key partners are the municipal authorities with whom it works to implement technology and media projects that enhance life for residents of their cities. The company also relies on third-party manufactures to produce technology objects, such as the kiosks it uses for LinkNYC.

Key Resources

Intersection’s main resources are its human resources, who include the technologists, media experts, engineers, designers, and strategists that work together to develop its technology and media solutions.

Cost Structure

Intersection has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely sales/marketing, a fixed cost. Other major drivers are in the areas of customer support/operations and administration, both fixed costs.

Revenue Streams

Intersection has two revenue streams:

• Advertising Revenues – Revenues the company generates from fees charged to brands to advertise their offerings on its technology platforms.
• Service Revenues – Revenues the company generates from fees charged for the design and technology services it offers as part of its portfolio.