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Continued: Chapter 1

Continued: Chapter 1. Business Model. E-commerce Business Models. Business models—a method of doing business by which a company can generate revenue to sustain itself Examples : Name your price Find the best price Dynamic brokering Affiliate marketing.

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Continued: Chapter 1

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  1. Continued:Chapter 1 Business Model

  2. E-commerce Business Models • Business models—a method of doing business by which a company can generate revenue to sustain itself • Examples: • Name your price • Find the best price • Dynamic brokering • Affiliate marketing

  3. E-commerce Business Plans and Cases • Business plan: a written document that identifies the business goals and outlines the plan of how to achieve them • Business case: a written document that is used by managers to garner funding for specific applications or projects; its major emphasis is the justification for a specific investment

  4. هشت مدل ابتدايي (اتمي) تجارت الكترونيكي • بازاريابي مستقيم • واسطه‌گري • تأمين كننده محتوا • تامين‌كننده خدمات كامل • زيرساخت اشتراكي • يكپارچگي شبكه ارزشي • جامعه مجازي • تقويت كننده خدمات براي سازمان‌هاي بزرگ

  5. عناصر يك مدل جامع كسب و كار • مشتريان • محصولات و خدمات • فرايند كسب و كار • منابع مورد نياز • زنجيره تأمين • مدل درآمد و برآورد هزينه

  6. Structure of Business Models(cont.) • Revenue model:description of how the company or an EC project will earn revenue • Sales • Transaction fees • Subscription fees • Advertising • Affiliate fees • Other revenue sources

  7. Structure of Business Models (cont.) • Value proposition:The benefits a company can derive from using EC • search and transaction cost efficiency • complementarities • lock-in • novelty • aggregation and interfirm collaboration

  8. Exhibit 1.4: Common Revenue Models

  9. Typical Business Modelsin EC • Online direct marketing • Electronic tendering systems (reverse auction):model in which a buyer requests would-be sellers to submit bids, and the lowest bidder wins • Name your own price: a model in which a buyer sets the price he or she is willing to pay and invites sellers to supply the good or service at that price

  10. Typical Business Models in EC (cont.) • Affiliate marketing: an arrangement whereby a marketing partner (a business, an organization, or even an individual) refers consumers to the selling company’s Web site • Viral marketing: word-of-mouth marketing in which customers promote a product or service to friends or other people

  11. Typical Business Models in EC (cont.) • Group purchasing: quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased (SMEs: small to medium enterprises) • Online auctions

  12. Typical Business Models in EC (cont.) • Product and service customization: creation of a product or service according to the buyer’s specifications • Electronic marketplaces and exchanges • Value-chain integrators • Value-chain service providers

  13. Typical Business Models in EC (cont.) • Information brokers • Bartering • Deep discounting • Membership • Supply chain improvers Business models can be independent or they can be combined amongst themselves or with traditional business models

  14. Chapter 3 Retailing in Electronic Commerce: Products and Services

  15. Amazon.com: The King of E-Tailing • The opportunity • July 1995, e-tailing pioneer Amazon.com, offered books via an electronic catalog from its Web site (amazon.com) • The company has continually enhanced its business models and electronic store by: • expanding product selection • improving the customer’s experience • adding services and alliances • recognizing the importance of order fulfillment and warehousing

  16. Amazon.com: The King of E-Tailing (cont.) • Key features of the Amazon.com superstore are: • easy browsing, searching, and ordering • useful product information, reviews, recommendations, and personalization • broad selection • low prices • secure payment systems • efficient order fulfillment • personalization

  17. Internet Marketing and Electronic Retailing (E-Tailing) • Overview of e-tailing • Electronic retailing (e-tailing):Retailing conducted online, over the Internet • E-tailers:Those who conduct retail business over the Internet

  18. What sells best on the Internet? Computer hardware and software Consumer electronics Sporting goods Office supplies Books and music Toys Health and beauty Entertainment clothes Cars Services Others Internet Marketing and E-Tailing (cont.)

  19. Internet Marketing and E-Tailing (cont.) • Characteristics of successful e-tailing • high brand recognition • guarantee provided by highly reliable or well-known vendors (Dell) • digitized format (software) • relatively inexpensive items (office supplies) • frequently purchased items (groceries) • commodities with standard specifications (books), physical inspection unimportant • well-known packaged items that cannot be opened even in a traditional store (vitamins)

  20. E-Tailing Business Models

  21. E-Tailing Business Models • Classification by distribution channel • Mail-order retailers that go online • Direct marketing from manufacturers • Pure-play e-tailers • Click-and-mortar retailers • Internet (online) malls

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