The Real Value of eBusiness Models

Topics: Marketing, Business model, Electronic commerce Pages: 3 (661 words) Published: April 18, 2013
Summary Note:
The real value of “e-business models”

Research Questions Asked
* What is the meaning of e-business model?
* Do the e-Business model really matter to create a thriving e-firm? * Can only a good e-business model will give the strength to company to get success? * What are the real key factors determining the survival or failure of e-firm?

The e-business model is a model used by the e-commerce company to better be organized for providing a product or service, generating revenues and, especially, creating and adapting to the new market and technologies.


This article suggests in a critical way how this important model could be applied to different types of company, distinguishing the model by categories. It pays attention how the particular model is not the only successful key of the company, but it will an important tool if the company understands the linkage between it, its core business and the marketplace environment. The article presents some cases of failure and success, and how it creates a thriving for the firm.

Supply chain model
* Direct sales: the firm provides a product or services directly to a customer ( Dell, Cisco, Aol) * Intermediary: the firm sells goods from a third party (Amazon) * Electronic marketplace: make easier the direct communication between buyers and sellers (Autobytel)

Revenue model
* Income is generated directly from the customer transaction * “Free sires where the income is generated through advertising or sponsorship (Napster)

Internet business can also be distinguished according to the markets they serve * B2B business to business
* B2C business to consumer
* Click and mortar: relies on offline asset
* Pure play model: purely net based

Failure and key of success

Odds of survival of different business models compared|
E-tail vs direct sales | 0.93:1|
Portal vs direct sales| 0.97:1|
Marktplace vs direct sales| 1.30:1|...
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