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Continued:Chapter 1

Business Model

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E-commerce Business Models

Business models—a method of doing business by which a company can generate revenue to sustain itself

Examples:Name your priceFind the best priceDynamic brokeringAffiliate marketing

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E-commerce Business Plans and

CasesBusiness 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

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هشت مدل ابتدايي )اتمي( تجارت الكترونيكي

بازاريابي 1.مستقيم

واسطه گري2.

تأمين كننده 3.محتوا

تامين كننده 4.خدمات كامل

زيرساخت 5.

اشتراكييكپارچگي شبكه 6.

ارزشيجامعه مجازي7.تقويت كننده 8.

خدمات براي سازمان هاي

بزرگ

5

عناصر يك مدل جامع كسب و كار

مشتريان1.

محصوالت و خدمات2.

فرايند كسب و كار3.

منابع مورد نياز4.

زنجيره تأمين5.

مدل درآمد و برآورد هزينه6.

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Structure of Business Models (cont.)

Revenue model: description of how the company or an EC project will earn revenue

SalesTransaction fees Subscription feesAdvertising Affiliate feesOther revenue sources

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Structure of Business Models )cont.(

Value proposition: The benefits a company can derive from using EC

search and transaction cost efficiencycomplementaritieslock-innoveltyaggregation and interfirm collaboration

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Exhibit 1.4: Common Revenue Models

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Typical Business Modelsin EC

1. Online direct marketing2. Electronic tendering systems

(reverse auction): model in which a buyer requests would-be sellers to submit bids, and the lowest bidder wins

3. 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

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Typical Business Models in EC )cont.(

4. 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

5. Viral marketing: word-of-mouth marketing in which customers promote a product or service to friends or other people

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Typical Business Models in EC )cont.(

6. Group purchasing: quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased

(SMEs: small to medium enterprises)

7. Online auctions

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Typical Business Models in EC )cont.(

8. Product and service customization: creation of a product or service according to the buyer’s specifications

9. Electronic marketplaces and exchanges

10.Value-chain integrators11.Value-chain service providers

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Typical Business Models in EC )cont.(

12.Information brokers13.Bartering 14.Deep discounting15.Membership16.Supply chain improvers

Business models can be independent or they can be combined amongst themselves or with traditional business models

Chapter 3

Retailing in Electronic Commerce: Products and

Services

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Amazon.com: The King of E-Tailing

The opportunityJuly 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 selectionimproving the customer’s experienceadding services and alliancesrecognizing the importance of order fulfillment and warehousing

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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 selectionlow pricessecure payment systemsefficient order fulfillmentpersonalization

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Internet Marketing and Electronic Retailing (E-

Tailing)Overview of e-tailing

Electronic retailing (e-tailing): Retailing conducted online, over the InternetE-tailers: Those who conduct retail business over the Internet

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Internet Marketing and E-Tailing (cont.)

What sells best on the Internet?Computer hardware and softwareConsumer electronicsSporting goodsOffice supplies

Books and musicToysHealth and beautyEntertainmentclothesCarsServicesOthers

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Internet Marketing and E-Tailing (cont.)

Characteristics of successful e-tailinghigh brand recognitionguarantee 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 unimportantwell-known packaged items that cannot be opened even in a traditional store (vitamins)

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E-Tailing Business Models

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E-Tailing Business Models

Classification by distribution channel

Mail-order retailers that go onlineDirect marketing from manufacturersPure-play e-tailersClick-and-mortar retailersInternet (online) malls