Business Models-E Commerce-Lecture Slides, Slides of Fundamentals of E-Commerce

This is lecture for E-Commerce course. It was delivered by Prof. Abhra Honnenahalli at Acharya Nagarjuna University. It inlcudes: Business, Models, Commercial, B2B, B2C, Strategies, Plan, Profit, Marketplace, Value, Proposition

Typology: Slides

2011/2012

Uploaded on 08/08/2012

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Learning Objectives
Identify the key components of e-
commerce business models.
Describe the major B2C business models.
Describe the major B2B business models.
Recognize business models in other
emerging areas of e-commerce.
Understand key business concepts and
strategies applicable to e-commerce.
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Learning Objectives

Identify the key components of e-commerce business models.Describe the major B2C business models.Describe the major B2B business models.Recognize business models in otheremerging areas of e-commerce.Understand key business concepts andstrategies applicable to e-commerce.

E-Commerce Business Models

Business modela set of planned activities designed to result ina profit in a marketplaceBusiness plana document that describes a firm’s businessmodelE-commerce business modela business model that aims to use andleverage the unique qualities of the Internetand the World Wide Web.

Eight Key Ingredients of a BusinessModel: Value Proposition

Defines how a company’s product orservice fulfills the needs ofcustomers.

Questions

Why will customers choose to dobusiness with your firm instead ofanother company?What will your firm provide that otherfirms do not and cannot?

Eight Key Ingredients of a BusinessModel: Revenue Model

Describes how the firm will earnrevenue, produce profits, and producea superior return on invested capital.

E-commerce revenue models include:

advertising modelsubscription modeltransaction fee modelsales modelaffiliate model

Eight Key Ingredients of a BusinessModel: Revenue Model

Transaction fee revenue modela company receives a fee for enabling orexecuting a transaction (eBay or E-Trade)Sales revenue modela company derives revenue by selling goods,information, or services (Amazon orDoubleClick)Affiliate revenue modela company steers business to an affiliate andreceives a referral fee or percentage of therevenue from any resulting sales (MyPoints)

Five Primary Revenue Models

Page 61, Table 2.

Eight Key Ingredients of a BusinessModel: Competitive Environment.

Refers to the other companiesoperating in the same marketplaceselling similar products

Influenced by:

how many competitors are activehow large are their operationsthe market share of each competitorhow profitable these firms arehow they price their products

Marketspace and Market Opportunity isthe Software Training Market

Page 62, Figure 2.