Category 4 - Explicit Space/Explicit Time

Web Hosting Industry
Web hosting companies rent out space on their servers for individuals or companies to build their own websites. Every website is hosted somewhere, and if it is not on the personal computer of the creator, then it is leased through a web hosting service. An extensive overview of this industry is available at http://www.w3schools.com/hosting/default.asp. Web hosting companies generally rent out a certain amount of space (measured in Megabytes or Gigabytes) for a given amount of time (usually on a monthly basis). In any case, the space is explicit because it is defined by industry standard and cannot be controlled by the individual web hosting company. Time is explicit as well because the terms of the rental are predetermined. Unlike a meal at a restaurant, where the customer controls duration of service, in this example the web host determines the duration. As we will see from the following examples, web hosts often utilize the space and time levers through techniques such as packaging and long-term commitments to maximize revenue.

100 Megs Web Hosting (http://100megswebhosting.com/services/shared.php)
This host demonstrates the traditional model for companies in this industry. Prices are increase based on the amount of hosting space required. Time is defined as “per month,” “per 6 months” or “per year,” with discounts available depending on the length of contract. This example is analogous to a physical storage facility, where customers pay a monthly or yearly fee to rent a certain number of square feet. While the customer does not have complete control over the size of the rental space, the primary price driver is determined by an external factor (industry standard).

Network Solutions (http://www.networksolutions.com/create-a-website/index.jsp)
This company twists the traditional model by trying to define “space,” thus moving the host closer to Quadrant II. It accomplishes this by selling packages based on number of web pages rather than amount of storage space used. This tactic is facilitated by Network Solutions’ focus on first-time web site creators who are not familiar with the traditional sales model. It effectively generates revenue for the company because, for example, its $5 package includes only 1 page, which could not possibly use up all of the 10 GB that 100 Megs Web Hosting allots to a similarly priced package.

GoDaddy (https://www.godaddy.com/Business/business-hosting.aspx?)
This company uses its specialization in domain name registration to further manipulate space and time for revenue generating purposes. Its web hosting is entirely designed around a “package” concept, including domain registration, hosting, design, and a number of other services that effectively hide the cost per megabyte. Like Network Solutions’ strategy, GoDaddy’s packaging concept serves to make space more implicit and move it closer to Quadrant II.

Angelfire (http://www.angelfire.lycos.com/)
Of the four examples, this is the only one that does not make money directly from its consumers. Rather, it offers web hosting for free (albeit only 20 MB) and places third-party advertisements on its customers’ websites. While unappealing to a business customer, this strategy attracts the most price-sensitive users. Angelfire is also unique in that it does not specify a specific length of time for which it will host a user’s site; once users sign up for the free service, their websites will exist until they choose to deactivate their accounts. Thus, time becomes implicit, moving this company toward the bizarre Quadrant III category. Angelfire can do this because it has little cost associated with each incremental account, and its advertising revenue actually increases linearly with the length of time that a site stays active.

Cemetery Industry[1]
This industry comprises establishments primarily engaged in operating sites or structures reserved for the interment of human or animal remains and/or cremating the dead. It includes mausoleums. While there are a number of large companies which operate an integrated funerals and cemeteries and crematories, there is still a significant involvement of government in managing and operating these latter facilities.

In 2008, sales of burial plots accounts for 35.6% the revenue generated in the Cemetery Industry. Other products or services provided include funeral/cemetery function services and sales of merchandise for the cemetery and the sales of the interment right (ground space or mausoleum crypt) sold by the cemetery.

Typically, customers pre-purchase and pre-pay for their funerals services, with all of the components and products pre-planned.

Here is the link for the definition of industry:
http://www.gravesolutions.com/SitePages/whoweare.asp

We define the sales of cemetery spot as the explicit time – explicit space category because of the following reasons:
1. How is time defined and who controls the time definition?
As customers pre-purchase and pre-pay for their burial plots, the cemeteries define the time for how long the customers can occupy the land of the cemetery. In most of the case, plots are available for lease on a 99-year renewable basis. In a special some cases, customers have a usage right of the site as short as five to ten years (common in Hong Kong and China). After the agreed time period, the body will be removed from the site, and it will be cremated.

2. How is the space defined?
The space is most likely defined as the physical space of the cemetery. Customers purchase or rent the land in square feet. Each type of plots have a specified dimension, although the location of the graves are different.

Notre-Dame-des-Neiges Cemetery (http://www.notredamedesneigescemetery.ca/en/services/traditional.aspx)
This cemetery is the largest cemetery in Canada and the third-largest in North America. Started to operate in 1855, close to a million people in over 110,000 family plots have been laid to the rest in this cemetery.

This company defines time and space traditional. Plots that accommodate two or more places for standard-size caskets are available for lease on a 99-year renewable basis. And customers can prearrange all the concession (crypt, niche or traditional plot), transportation of remains, floral arrangements, viewing, interment, cremation, and purchase of an urn.


Chinese Forever Cemetery - (http://www.bmcpc.org.hk/index.aspx)
This is a government subsidized cemetery in Hong Kong, and is one of the largest cemetery operators. It operates four different sites in Hong Kong. The pricing of the graves are summarized as followed:
Lease Type A
10 years, renewable, 10 years each
$3500
$2500

Lease Type b
10 years, non-renewable
$2500
-
A typical space of a grave is 1,500(length) x 900(width) x 1,800 mm(height)

Grave Solutions (http://www.gravesolutions.com/SitePages/buyingselling.asp)
It is a company facilitates the buying and selling of graveyards. It has developed the first and only secondary market of cemetery property in the United States. Its website features a national database of cemetery lots and burial plots so that customers can go online and check for the price of burial site available. As a grave plots transaction facilitators, it defines the time and grave

Sengakuji Temple Minato ( http://www.odyssei.com/travel-tips/5646.html)
In Japan, the norm is that a family buys some land from a temple and then builds a tomb to fit the rest of the family—Granddad, grandma, parents and yourself get to spend the rest of eternity together - at a cost. Graveyard plots are treated as a form of real estate.
[1] Cemetery Services in the US, November 05 2008, IBIS World Database