E-COMMERCE MODELS
A business model could be defined as portrayal of the potential benefits for a group of stakeholders or actors; also it can be seen as architecture of how a firm generates its revenue. Over the years many firms have tried to use the Internet to create their own unique selling points, which can be seen as their business models. For instance Amazon.com’s innovation in this regards was to eliminate the traditional arrangement of supply chain (Disintermediation) and to make value out of it. Several other e-commerce sites have carried out similar transformations e.g.Ebay.com in the area of auction. Though there has been no consensus on the definition of a business model in the online context, practitioners have tried to link the term “e-commerce” to firms that can conduct all aspects of their transactions online hence some classification of the various market structures that operate in the Internet has been developed (Mahadevan, 2000).
A Portal can be regarded as an emerging model that aims to enlighten customers about various products and services. They drive traffic into various sites, companies such as Yahoo and AOL operate this model, while the market marker is another structure or model that is similar to the portal in terms of forming awareness amongst buyers, it does not just links customers and sellers but goes an extra mile by having a huge knowledge base about the supplier it facilitates transactions between the two. They also aim to provide value for the customer through guaranteed security while carrying out transactions on such sites. Market makers can be found in a business to consumer setting e.g.ebay.com and also in business-to-business context.Amazon.com falls under a category of models known as the ...
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...ilt on their logistical streams. The online market allows a firm to put itself in a suitable position across the supply chain (Mahadevan, 2000). Disintermediation and Info-mediation are prominent examples of logistics streams. Disintermediation is the reduction of the number of actors in the supply chain with the aim of cutting down costs and improving efficiency. The success of this system can be seen in Amazon,com where customers order goods and gets delivered to them directly. Dell computers allow adopts this model. A distinct logistical stream that exists is the info-mediation, due to the huge amount of information available online and also because customers cannot process everything they see info-mediation serves to allow customers access to relevant information easily. They act as agents or brokers to customers and also safeguard their privacy concerns online.
How has the use of technology changed its interaction with its suppliers? Wholesalers? Other business partners?
Li & Fung is a global trading group sourcing and managing the supply chain for high volume, time sensitive consumer goods. The group is associated with strong brands such as The Limited, Gymboree, American Eagle, Warner Brothers, Bed, Bath & Beyond, Levi-Strauss. With the rise of the internet, and the thrive of the B2B intermediaries, this memo will discuss the Li & Fung's E-Commerce strategy and how to use internet to facilitate supply chain management.
Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Priceline.com are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com leads the way to a unique new type of e-commerce known as a "demand collection system". Priceline.com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price.
In addition to the change in behavior of consumer, many companies or retailers change the sales channel combinations. The greatest impact of the Web-bases electronic revolution has occurred in companies adopting the click-and-mortar approach. Click- and-mortar is one the strategy used by the companies or retailers that they continue to conduct their business in the physical locations and have added the electronic commerce component to their business activities. According to one study, 37% of United States retailers are selling through a combination of the internet, in stores and catalogs. This represents a growing demand for the business-to-customer package delivery service.
When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.
Osterwalder and Pigneur defines a business model as “the rationale of how an organization creates, delivers, and captures value. The business model is a macro level plan that will guide how a firm will conduct itself with suppliers, buyers, and partners in its pursuit of these profits. The innovativeness of a firm’s business model is just as important as what product or service the company provides in it achieving superior performance and gaining and sustaining a competitive advantage (Rothaermel, 2015). The nine building blocks of a successful business model include the following: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure (Osterwalder, Pigneur, & Clark, 2010). Three popular business models mentioned by our textbooks that companies are adopting include “Bait & Hook,” Freemium, and
Evaluation of the potential of e-business as a channel to US’s consumer market: Levenburg (2013) asserts that for the retail businesses to maintain successful e-business approach, it is imperative they comprehend the novel channel. The fundamental comprehension of the multi-channel based transaction frontier is imperative to sustain a proper evaluation of e-business’s impact on the consumer market. It is imperative that retail businesses how the internet can be geared to deliver beneficial outcomes in regards to tapping into the consumer market. The changing operational structures are equally pivotal for evaluation especially the notion of supply chain operational shifts (Graig
Not unexpectedly, companies are realigning their product and service platforms into “e-business solution architectures” that can better address the needs of improved customer relations and enhanced financial conditions for the company overall. The greater... ... middle of paper ... ... ng an online presence is to provide increased support, cost savings and convenience to the customer and provide efficiencies and cost savings to the company. References: E-Business Models, Trambly, R., retrieved online September 28, 2004 from, http://www.computerworld.com/industrytopics/retail/story/0,10801,54589,00.html Business Models on the Web, Managing the Digital Enterprise, Rappa, M., retrieved online September 26, 2004 from: http://digitalenterprise.org/models/models.html Intel Web Site (http://www.intel.com/business/bss/infrastructure/managing/define_value.htm) Intel Business Services http://intel.com/business/index.htm Ebay www.ebay.com Boy Scouts Of America http://www.scouting.org/ Boy Scouts Of America, Great Salt Lake Council http://www.gslc-bsa.org
There are two E-commerce scenarios that have been looked at that face logistical issues in Australian organisations of Big W and Oz Hut and through the analysis of these organisations we will be looking into the systems used and how they are dysfunctional to these companies. Also exploring better ways to improve order fulfilment, third party logistics and the growing online retailing industry of changes needed to enhance competitiveness. With transportation having a substantial impact on the way the e-commerce trade is facilitated been a key element of building trust between sellers and buyers. (Commission, 2012)
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
For inventory businesses, computers allow the business to immediately know when new products are available by looking on the internet. They are provided many valuable pieces of information about the product, such as quality, price, and so on. The business can quickly and easily buy inventory over the internet and track it as it is being shipped. Once the business receives their inventory they then sell it individually to their customers. Many businesses have websites which allow the consumer to go to the business’s website and do similar to what the business did to get the inventory. They can view product information, see the newest products, and quickly order online. The customer is given an order confirmation number that allows them to check the status of their purchase as it is being shipped and see if there are any delays due to backorders or other problems. IBM is soon going to be marketing middleware that will help enhance these aspects of the business. The middleware will allow a business to manage their product information that exists over a variety of systems. The software will allow for product attributes and locations to be more accurately shared. Many companies still give out inaccurate information about their products because of insufficient technology. This middleware will help solve this business problem allowing businesses to enhance their performance and customer service. This will very positively affect businesses (Beth Bacheldor-InformationWeek.com).
It is a type of business model that enables a business entity or firm or individual to conduct business over an electronic network, usually the internet. Electronic commerce operates in all four of the major market segments:
Michael Lewis (2000: pages 256-257) scoffed at the whole attempt to formalize the definition of business models when he wrote that “ “Business Model” is one of those terms of art that were central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how you planned to make money.”
At the very start, internet revolution was known as a world wide web that would change everything. In 1990s, the concept of "online business" was created, this business is known by various names such as dot-coms, e-biz etc. which made easier to start a business on internet and inexpensive as well. Whether it's a big or a small, local or international it can reach infront of the world very easily. Thousands of ventures have been made on internet for online business on the basis of brick and mortar. Online business is not different from any other venture. Same rules and principles are applied. First thing to start up a business is to create a business plan and think of how to make money. Some of the options which should be applied for an online business includes, sell products, sell advertising, sell information, sell services and to become a reseller. All of these options are complied together. For any virtual business an individual should always look for products with high margins, high demand and less competition either for physical or digital manner. However, many services are sold on internet such as web hosting, domain name registration, software applications and comparison of different products and services. Selling information is another basic option in an online business which is done in two forms, one is subscribing on a website where online articles are available for free and on the other hand e-books are popular and are free, they can be downloaded easily plus when the writing is done the cost of subscription is very low. Advertising on internet leads toward a lot of money though it's an expensive procedure, with a lot of traffic on a web site one can make money easily by joining any kind of ad network such as Google. By getting affiliated with another web site can also make a lot of money such as sending a buyer on another merchant's web page, like this one can get a percentage on per sale basis but first an individual needs to get expert in marketing for search engines.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.