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Petsmart business strategy
Comparison of e-business models
E-business models and comparison
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Recommended: Petsmart business strategy
Point 1:
With several thousand commercial Web sites to consider, there are a great variety of e-commerce business models.
Many firms pursue multiple business models at once. Nevertheless, there clearly are dominant patterns to all this variety on the Web.
Point 2:
I describe seven different and typical e-commerce business models like Portals, E-tailers, Content Providers, Transaction brokers,
Market Creators, Service Providers, and Community Providers including social networking sites.
E-commerce Model for the given Assignment B2C is:
Petsmart is a B2C e-tailer. Its main customer value proposition is that it offers the broadest assortment of pet supplies at the lowest prices.
Petsmart uses a sales revenue model: it operates in the specialty
Strengths. PetSmart offers a one stop shop experience to the consumer by providing value added services and products. PetSmart’s
as a good opportunity is considering its partnerships. Partnerships means networking and connections for growth. For example, they have 844 veterinary hospitals due to its partnership with Medical Management International and others that are in Canada (PetSmart, Inc. SWOT Analysis, 2015, pp. 19). Since PetSmart Inc. is a one stop shop that essentially has everything a pet owner needs in one spot it makes them more attractive than larger retailers. In addition, any services they provide they try to focus and provide the best and lead in all pet specialties. For example, their professional grooming services, is one of the services that gives the groomers an additional amount of grooming skills and are taught to use safe and gentle
PetSmart has been able to get a balance of services, price, and availability, which is critical when competing against mass merchandisers such a Walmart. PetSmart reevaluated their warehouse style and changed to a home inviting friendly environment. They even cut the store size and stocker fewer quantities of items on the shelves. To appeal to customers and encourage purchases they created eye-catching displays and promotions.
Laudon, Kenneth C. Traver, Carol. E-commerce: Business. Technology. Society 3th ed. Pearson Prentice Hall. Upper Saddle NJ, 2007.
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 two distinct e-commerce business types, Business-to-business (B2B) and Business-to-Consumer (B2C), there are many differences in the way they operate. Specifically in marketing, differences include how the marketing is driven and the values of the strategies, the size of the target market and length of the sales cycle, and even the buying patterns of the target consumers. Each of these differences will be better defined and explained in the following paragraphs.
Business models provide structure to an organization, ensure that the company is profitable, and differentiate themselves from competitors by marketing various products and services (Jovarauskienė et al., (2015). Business models convert ideas and technologies into outcomes, and create opportunities: cost and revenue (Sako, 2012). According to Granados (2008), computer technology that incorporates travel businesses with retailers, distributors, and suppliers is vital in developing a successful e-commerce business
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business
The e-commerce company’s strategy focus allowed it to differentiate itself by providing better services to its customers. The company put an innovative business model in which customers would try out the company’s services without any cost. As time progressed, the company was able to generate revenue from alternative means. In addition, the company began to generate revenue from an increase in the willingness of its users to pay for additional
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.
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).
The future of economic competitiveness for most enterprises relies on entrance and active participation in the e-commerce market. An essential problem with e-commerce is that the controls and organization are different for each site. There is no standard way of building t...
The report also talks about the differences between, advantages and disadvantages of e-business and e-commerce. Recommendations and advice have been given in the end for businesses intending to adopt an e-business dimension.
E- Commerce is a phenomena that is emerging rapidly between businesses all over the world, and it has affected the businesses at all sizes in many aspects.
E-commerce application is a platform where there is buying and selling of products and services which are done by businesses and consumers via an electronic medium, mostly without using any paper documents. “E-Commerce applications support transactions between businesses and their customers. They provide 24/7 customer support, allowing customers to order products, check orders and track shipping, review previous orders, reorder products, and manage their accounts.” (Auburn SeeWolf llc , 2009-2012)