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02 ec lect business models concepts

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02 ec lect business models concepts
INFO 3435 eCommerce

Teaching Objectives

2. eCommerce Business
Models and Concepts






Identify the key components of eCommerce business models.
Describe the major B2C business models.
Describe the major B2B business models.
Describe business models in other emerging areas of eCommerce. • Explain the key business concepts and strategies applicable to eCommerce.

Alexander Nikov
2-2

How popular is

Tweet Tweet:
What’s Your Business Model?
• What characteristics or benchmarks can be used to assess the business value of a company such as Twitter?
• Have you used Twitter to communicate with friends or family? What are your thoughts on this service? • What are Twitter’s most important assets?
• Which of the various methods described for monetizing Twitter’s assets do you feel might be most successful?
2-3

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Outline

Components of eBusiness models

1. eCommerce Business Models
2.
3.
4.
5.

Major Business-to-Consumer (B2C) Business Models
Major Business-to-Business (B2B) Business Models
Business Models in Emerging eCommerce Areas
How eCommerce changes business: Strategy, Structure, and Process

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The eight key elements of a business model eCommerce Business Models
• Business model
– Set of planned activities designed to result in a profit in a marketplace
• Business plan
– Describes a firm’s business model
• eCommerce business model
– Uses/leverages unique qualities of Internet and Web

2-7

2-8

8 Key Elements of a Business Model

1. Value Proposition
• Why should the customer buy from you?
• Successful eCommerce value propositions:
– Personalization/customization
– Reduction of product search, price discovery costs
– Facilitation of transactions by managing product delivery 2-9

2. Revenue Model

2-10

Advertising Revenue Model

• How will the firm earn revenue, generate profits, and produce a superior return on invested capital?

• Web site that offers content, services and/or products also provides a forum for advertisements and receives fees

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