Scribd
Upload
124 views17 pages

Chapter 5 E Commerce Business Model

The document discusses e-commerce business models and how e-commerce changes business strategy, structure, and processes. It defines key elements of a business model including value proposition, revenue model, market opportunity, competitive environment, advantage, strategy, organizational development, and management team. It also outlines major B2C business models like e-tailers, community providers, content providers, portals, transaction brokers, market creators, and service providers. Finally, it discusses how e-commerce impacts industry structure, value chains, and business strategy.

Uploaded by

Knowledge Hunter
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
124 views17 pages

Chapter 5 E Commerce Business Model

The document discusses e-commerce business models and how e-commerce changes business strategy, structure, and processes. It defines key elements of a business model including value proposition, revenue model, market opportunity, competitive environment, advantage, strategy, organizational development, and management team. It also outlines major B2C business models like e-tailers, community providers, content providers, portals, transaction brokers, market creators, and service providers. Finally, it discusses how e-commerce impacts industry structure, value chains, and business strategy.

Uploaded by

Knowledge Hunter
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 17

CHAPTER 5:

E-COMMERCE BUSINESS MODEL

LECTURE: 07
COURSE COACH: MASNOON SALEHIN
COURSE: E-BUSINESS
LECTURER, DEPARTMENT OF
MANAGEMENT, FBS, UNIVERSITY OF COURSE CODE: MGT 403
DHAKA
E-COMMERCE BUSINESS MODELS
BUSINESS MODEL Eight Key Element of a Business Model
Set of planned activities designed to result in a 1. Value proposition
profit in a marketplace.
2. Revenue model
BUSINESS PLAN
3. Market opportunity
A document that describes firm’s business
4. Competitive environment
model.
5. Competitive advantage
6. Market strategy
7. Organizational development
8. Management team
E-COMMERCE BUSINESS MODELS (CONTD.)
1. Value Propositions

 Defines how a company’s product or service fulfills the needs of customers

 Why should the customer buy from you?

 Successful e-commerce value propositions:

• Personalization/customization
• Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery

 Examples- BS
E-COMMERCE BUSINESS MODELS (CONTD.)
2. Revenue Model

 Describes how the firm will earn revenue, produce profits and a produce a superior
return on invested capital

 Major types of revenue models:


 Advertising revenue model
 Subscription revenue model
 Transaction fee revenue model
 Sales revenue model
 Affiliate revenue model
E-COMMERCE BUSINESS MODELS (CONTD.)
3. Market Opportunity
 Company’s intended marketspace and the overall potential financial opportunities available to
the firm in that marketspace
 The market opportunity is usually divided into smaller market niches
4. Competitive Environment
 Who else occupies the intended marketspace?
 Influenced by:
 Number and size of active competitors
 Each competitor’s market share
 Competitors’ profitability
 Competitors’ pricing
E-COMMERCE BUSINESS MODELS (CONTD.)

5. Competitive Advantage

 What special advantages does the firm bring to the marketspace?


• Is your product superior to or cheaper to produce than your competitors’?
 Important concepts:
• Asymmetries
• First-mover advantage, complementary resources
• Unfair competitive advantage
• Perfect markets
E-COMMERCE BUSINESS MODELS (CONTD.)
6. Market Strategy 8. Management Team

 How do you plan to promote your  A strong management team:


products or services to attract your target
audience? • Can make the business model work
7. Organizational Development • Can give credibility to outside
investors
 Describes how firm will organize work
• Has market-specific knowledge
• Typically, divided into functional • Has experience in implementing
departments business plans
• As company grows, hiring moves from
generalists to specialists
.
E-COMMERCE BUSINESS MODELS (CONTD.)

RAISING CAPITAL

 Seed capital
 Traditional sources
• Incubators
• Angel investors
• Venture capital firms

 Crowdfunding
MAJOR BUSINESS-TO-CONSUMER (B2C) BUSINESS MODELS

E TAILER COMMUNITY PROVIDER


 Online version of traditional retailer  Creates an environment where people
with-
 Bricks-and-Mortar Vs. Bricks-and-Clicks
• Similar interests can transact
 Trades only in the Virtual World
• Share interests, photos and videos
 Revenue Model-
 Revenue Model-
MAJOR BUSINESS-TO-CONSUMER (B2C) BUSINESS MODELS
(CONTD.)

CONTENT PROVIDER PORTALS


 Distribute information content such as  Search tools as well as an integrated
digital news, music, photos and artwork package of content and services all in
one place
 Revenue Model-
 Example-
 Syndication Vs. Aggregators
 Revenue Model-
MAJOR BUSINESS-TO-CONSUMER (B2C) BUSINESS MODELS
(CONTD.)
TRANSACTION BROKER MARKET CREATORS
 Process online transactions for  Create a digital environment where buyers
and sellers can-
consumers
• Meet
 Revenue Model- • Display and search for products
 Industries- Financial, Travel, Jobsites  Market Creator Vs. Transaction Broker
 Revenue Model-
 Example
SERVICE PROVIDERS
 Provides online services
 Example-
 Revenue Model-
MAJOR BUSINESS-TO-BUSINESS (B2B) BUSINESS MODELS

NOT IN THIS CLASS!!


HOW E-COMMERCE CHANGES BUSINESS: STRATEGY, STRUCTURE &
PROCESS

INDUSTRY STRUCTURE

See Figure: 5.3


HOW E-COMMERCE CHANGES BUSINESS: STRATEGY, STRUCTURE &
PROCESS (CONTD.)
INDUSTRY VALUE CHAIN
HOW E-COMMERCE CHANGES BUSINESS: STRATEGY, STRUCTURE &
PROCESS (CONTD.)
FIRM VALUE CHAIN
HOW E-COMMERCE CHANGES BUSINESS: STRATEGY, STRUCTURE &
PROCESS (CONTD.)
FIRM VALUE WEBS
HOW E-COMMERCE CHANGES BUSINESS: STRATEGY, STRUCTURE &
PROCESS (CONTD.)
BUSINESS STRATEGY
Five generic strategies
 Product/service differentiation
 Cost competition
 Scope
 Focus
 Customer intimacy

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy