Preview

E-Business

Satisfactory Essays
Open Document
Open Document
505 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
E-Business
Business Model
A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy but always not same. Actually it is a set of planned activities designed to produce profit in a marketplace. And e-commerce business model that aims to use leverage the unique qualities of the internet and World Wide Web. It has eight key elements. 1. Value Proposition 2. Revenue Model 3. Market Opportunity 4. Competitive Environment 5. Competitive Advantage 6. Market Strategy 7. Organizational Development 8. Management Team

B2C Business Models

B2C Business Models: Portal
Offers powerful search tools plus an integrated package of content and services, such as news, e-mail, instant messaging, calendars, shopping, stock prices, music downloads, video streaming, and more, all in one place.
Variations:
* May be general or specialized (vortal)
Example:
portals are AOL ( previously known as America Online), Excite, iGoogle, MSN (originally: The Microsoft Network), Naver, Indiatimes, Rediff, Sify and Yahoo!, Ask.com.
Revenue Model:
Advertising, subscription fees, transaction fees, affiliate referral etc.

B2C Business Models: E-tailer
Virtual Merchant:
Online version of retail store, where customer can shop at any hour of the day or night without leaving their home or office.
Example: Amazon.com
Revenue Model: Sales of goods

Bricks and Clicks:
Online distribution channel for a company that has also physical stores.
Example: Walmart.com, Sears.com
Revenue Model: Sales of goods

Catalog Merchant:
Online version of direct mail catalog.
Example: LLBean.com, Lillianvernon.com
Revenue Model: Sales of goods

Manufacture- direct:
Manufacturer users online channel to sell direct to customers.
Example: Dell.com, Mattle.com, Sony.com
Revenue Model:

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The business model is working description that includes the general details about the operations of a business. The components that are contained within a business model will address all functions of a business, including such factors as the expenses, revenues, operating strategies, and marketing. Generally, anything that has to do with the day to day functionality of a business can be said to be part of the business model. Every business such as a childcare center has a business model that has business commerce, business occupation and business organization.…

    • 316 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Vian

    • 999 Words
    • 5 Pages

    8. A business model describes how a company produces, delivers, and sells a product or service to create wealth.…

    • 999 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    E-Business

    • 644 Words
    • 3 Pages

    Describe the insight generation process used at Ben & Jerry’s. What benefits did Ben & Jerry’s achieve from utilizing the process?…

    • 644 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Business Model – Framework in which business strategy is applied, leading to development of business processes (Osterwalder & Pigneur, 2002).…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    business model 1

    • 844 Words
    • 4 Pages

    As described in the previous answer, a business model is defined as “the rationale of how an organization creates, delivers, and captures value.” (Osterwalder and Pigneur, 2010, p. 14) While this definition is just a starting point, there is much more to a business model than this description provides. A role of a business model is to “provide a set of generic level descriptors of ow a firm organizes itself to create and distribute value in a profitable manner” (Baden-Fuller and Morgan, 2010, p. 160). Often, business models become synonymous with the company that implements them. Apple, Mcdonalds, and Starbucks…

    • 844 Words
    • 4 Pages
    Better Essays
  • Good Essays

    A business model refers to the trade-offs and decisions regarding how an organization makes money. Every business model must answer four questions. The four questions are: who is the customer?; what does the customer value?; what is the underlying logic of how value is delivered to the customer?; and how does the organization make money?…

    • 371 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Peapod Report

    • 2076 Words
    • 9 Pages

    On line shopping services where customers can shop 24 hours a day 7 days a week.…

    • 2076 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    3) A business model describes how a company produces, delivers, and sells a product or service to create wealth.…

    • 3684 Words
    • 15 Pages
    Good Essays
  • Good Essays

    By using the subscription based part of the mixed revenue model, they would be charging a subscription fee for both their website services but also their traveler magazine. The subscribers pay the fee and accept a certain level of advertising in the process.…

    • 899 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    A business model looks at how to create value for a consumer, and does not look into the future planning and forecasting of a business to achieve profits and a competitive advantage, unlike a strategy. A strategy defines the path that the business will take in the future in order to achieve its goals of profit maximization and competitive advantage.…

    • 1576 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Michael Lewis has defined the phrase business model as “a term of art”. He say that business model is an art, as it is something that can be recognized when they come across but are not able to define. Down the years, people have defined it according to their convenience or how they have used it. Lewis defines that business model is how we plan to make money. Business model enables the company to earn money and survive in the business competition. He even cites the example of Microsoft there business model is to sell software for 120 bucks a pop that cost cost fifty cents to manufacture.…

    • 647 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Campusfood.Com Case

    • 9717 Words
    • 39 Pages

    Few concepts in business today are as widely discussed—and as seldom systematically studied—as the concept of business models. Many people attribute the success of…

    • 9717 Words
    • 39 Pages
    Powerful Essays
  • Good Essays

    Stanford Design Report

    • 536 Words
    • 2 Pages

    The first aspect in a business model is revenue driver that explains company’s growth in revenue or sales. Every company should have only one growth driver. The second aspect is pricing strategy which is often neglected. This helps us answer when how we receive revenue when closing a sale. There are three pricing strategies that provide a means to…

    • 536 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    E-Business Web Sites

    • 3955 Words
    • 16 Pages

    En las páginas Web el “Look and Feel” debe ser atractivo al usuario que se espera entre a la página. Este se debe complementar con el contenido de la página. Para esto se deben escoger texto, imágenes y los colores apropiados. Esta combinación logrará que la página sea una atractiva y agradable para el usuario. En cuanto al texto se deben utilizar un tipo de texto que sea legible para todos. Es recomendable que se trate de usar un solo tipo de texto en la página. Por su parte las imágenes deben ser compatibles con el tema de la página. Por ejemplo si la página es de viajes, las imágenes deben denotar eso. Los colores deben de ser bien escogidos para las páginas. Si la página es de Hardrock, es de esperarse colores oscuros y no colores pasteles en la página. En este caso estaremos observando el look and feel de tres compañías de viajes. Estas compañías lo son Travelocity, Orbits y Expidia. Las tres ofrecen los mismos servicios que son viajes aéreos, cruceros, y hoteles entre otros.…

    • 3955 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    A business plan is a way for a company to make known how they foresee themselves making revenue and ultimately profit from their operations and was described to be the “stories how the enterprises work,” by Joan Magretta. An accurate definition of a business model would be, “the chosen system of inputs, business activities, outputs and outcomes that aims to create value over the short, medium and long term,” with the aim of the model being to convey the business’ strategy.…

    • 3917 Words
    • 16 Pages
    Powerful Essays