8 Key Element for a Business Model
E-commerce: business. technology. society.
E-commerce E commerce
Business. Technology. Society gy y
Kenneth C. Laudon
Copyright © 2011 Pearson Education, Ltd.
Chapter 5 Business Models for E‐commerce
Copyright © 2007Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 1-2
E-commerce Business Models Business model d l
Set of planned activities designed to result in a Set of planned activities designed to result in a profit in a marketplace
Business plan
Describes a firm s business model Describes a firm’s business model
E commerce business model E‐commerce business model
Uses/leverages unique qualities of Internet and Web W b
Slide 2-3
8 Key Elements of Business Model
1. 2. 3. 4. 5. 6. 7. 8.
Value proposition Revenue model Market opportunity Market opportunity Competitive environment Competitive advantage Market strategy Market strategy Organizational Development Management team
Slide 2-4
1. Value Proposition Why should the customer buy from you? h h ld h b f ? Successful e‐commerce value S f l l propositions:
Personalization/customization Reduction of product search, price discovery costs Facilitation of transactions by managing product delivery
Slide 2-5
2. Revenue Model
How will the firm earn revenue, generate p profits, and produce a superior return on p p invested capital? Major types:
Advertising revenue model g Subscription revenue model Transaction fee revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model
Slide 2-6
3. Market Opportunity What marketspace do you intend to h k d d serve and what is its size?
Marketspace: Area of actual or potential commercial value in which company intends to operate in which company intends to operate Realistic market opportunity: Defined by revenue potential in each market niche in which company hopes to potential in each market niche in which company hopes to compete
Market opportunity typically divided into M k t t it
E-commerce E commerce
Business. Technology. Society gy y
Kenneth C. Laudon
Copyright © 2011 Pearson Education, Ltd.
Chapter 5 Business Models for E‐commerce
Copyright © 2007Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 1-2
E-commerce Business Models Business model d l
Set of planned activities designed to result in a Set of planned activities designed to result in a profit in a marketplace
Business plan
Describes a firm s business model Describes a firm’s business model
E commerce business model E‐commerce business model
Uses/leverages unique qualities of Internet and Web W b
Slide 2-3
8 Key Elements of Business Model
1. 2. 3. 4. 5. 6. 7. 8.
Value proposition Revenue model Market opportunity Market opportunity Competitive environment Competitive advantage Market strategy Market strategy Organizational Development Management team
Slide 2-4
1. Value Proposition Why should the customer buy from you? h h ld h b f ? Successful e‐commerce value S f l l propositions:
Personalization/customization Reduction of product search, price discovery costs Facilitation of transactions by managing product delivery
Slide 2-5
2. Revenue Model
How will the firm earn revenue, generate p profits, and produce a superior return on p p invested capital? Major types:
Advertising revenue model g Subscription revenue model Transaction fee revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model
Slide 2-6
3. Market Opportunity What marketspace do you intend to h k d d serve and what is its size?
Marketspace: Area of actual or potential commercial value in which company intends to operate in which company intends to operate Realistic market opportunity: Defined by revenue potential in each market niche in which company hopes to potential in each market niche in which company hopes to compete
Market opportunity typically divided into M k t t it
Links: Copyright © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 8-123 Ethical, Social, Political Issues in E-commerce