E-Commerce Model Analysis

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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.

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