- A business model is a set of planned activities designed to result in a profit in a marketplace .
- E-commerce business model aims to use the unique qualities of the Internet .
- e-commerce business models Categorized according to the
e-commerce types (B2B, B2C, C2C)
Business model components; - value proposition.
- Market segments.
- value greation structures.
- Revenue model.
- Competitive strategy.
- Growth strategies.
1. Business-to-Consumer Business Models"B2C business models":
Portal
–Horizontal portals ;
Horizontal portals Include all users of the internet.
Example. Yahoo.com, AOL.com .
–Vertical portals ;
Focused around a particular subject matter or market segment .
Example. iBoats.com .
-Both earn money on advertising, referral fees, subscription fees, transaction fees .
Content Provider
–Example. CNN.com .
–Key to success: owning the content .
–Earn money on subscription fees, and/or charge for content downloads.
Transaction Broker
–Financial, travel services, job placement services .
–Examle. E-Trade.com, Monster.com .
–Market opportunity large, but must overcome customer fears .
–Earn money each time a transaction occurs .
Market Creator
–Example. eBay.com .
–The buyers and sellers are their own agents .
–Earn money per transaction .
E-Tailer
Example. Amazon.com, Dell.com .
Every internet user is a potential customer .
Differentiate from existing stores - develop a niche strategy.
Earn money primarily by selling goods .
