What is it about?
Qihoo 360 is a company that took just six years to become a company listed on the New York Stock Exchange (with a market value of over US$ 2 billion at IPO). This case discusses Qihoo 360’s free business model, how it used this free model to overpower competitors, and how the model evolved over time.
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Why is it important?
This case illustrates how a new company can challenge incumbents through reinventing the business model and disruptive innovation. Particularly, it presents the business model/strategy of offering products for free, and the evolution of the business model/strategy during the entrepreneurial process. It also illustrates how a start-up company adapted its business model along the way, and the opportunities of starting and growing ventures in emerging markets.
Perspectives
Further References: Anderson, C. (2009) Free: The Future of a Radical Price, New York: Hyperion. Eisenhardt, K. M. & Sull, D. N. (2001). Strategy as Simple Rules. Harvard Business Review, 79(1): 106-119. Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12): 50-59.
Dr Yanli Zhang
Montclair State University
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This page is a summary of: Qihoo 360: building a “free” business model, The CASE Journal, April 2015, Emerald,
DOI: 10.1108/tcj-07-2014-0055.
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