E-Commerce Model Of Business Model

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Recommended: Description of business model

Though utilized in every website design and development, business models as an aspect of the world wide web are not well understood. This paper demystifies the principle business models utilized by L’Oreal, Estee Lauder, Korres, and Apivita. In order to understand each company with greater clarity, each business’ website shall then be critically and comparatively analyzed through Rayport & Jaworski’s design principles for e-Commerce websites.
Business models have been defined and categorized in many different ways, though all four websites examined have components of advertising, merchant, and manufacturing models. The web advertising model is an extension of the traditional media broadcast model, yet in this case the web site provides content mixed with advertising messages in the form of banner ads (Berger & Nasr, 1998). On the other hand, the merchant model involves wholesale of goods, while the manufacturer model is said to be based on efficiency, improved customer service, and a better understanding of customer preference (Berger & Nasr, 1998).
Let’s consider how each website falls into one or more of the aforementioned categories, as well as entertain a particular anomaly. Bear in mind that, according to the experts, internet business models continue to evolve, as new and interesting variations can be expected in the future (Berger & Nasr, 1998). Though several are covered here, this is not a definite or exhaustive list as even among each distinguished category there are a myriad of variations.
Let’s begin with L’Oreal, for example, as the company does not sell products directly on its principle website. Though it is not a merchant website, there is brand-integrated content throughout (indicative of merchant model...

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...n that appears to change seasonally. These sections are advantageous, as they spur consumerism by including features and deals such as free shipping, discounts on multiple options, and style guides that are varied per season.
In conclusion, it is clear that each website utilizes a different variation of several business models, while prioritizing different features of the website. For illustration, while the layout of Apivita’s website is orderly and clean, their emphasis on wording and busy text impacts the user experience. Estee Lauder, on the other hand, favors exciting imagery rather than language to attract the user and encourage a deeper exploration of the website. Despite their specific techniques, it is important such businesses conduct thorough reviews of their business models and practices in order to consistently grow and improve as an organization.

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