E-Business

Topics: Marketing, Business model, Strategic management Pages: 3 (505 words) Published: March 2, 2013
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: Sales...
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