Ch 2. E-Commerce Business Models

Business Models B2C Models B2B Business Models Business Models in Emerging E-

Commerce Areas Business concepts and Strategies

Eight Ingredients of a Business Model

Value proposition – Why buy from you?

Revenue modelHow money is earned

Market Opportunity Target market & size

Competition – Who? What unique

advantage offered?

Market strategy Organizational

development Management team

Revenue Model Advertising revenue

model (Yahoo)

Subscription revenue model (Consumer Reports Online)

Transaction Fee – (E Trade)

Sales revenue model (Amazon.com

Affiliate revenue model (MyPoints.com)

B2C Models Portal –

General –YahooSpecialized -

Sailnet E-tailer –

Virtual – Amazon

Clicks and Bricks – Wal-Mart

Catalog Merchant – LL Bean

Manufacturer Direct - Dell

Content Provider – CNN Transaction Broker – E-

Trade

Market Creator – Ebay

Service Provider – Lawinfo.com

Community Provider – About.com

B2B Models Net Market Places

E-distributor(Staples)E-Procurement (Ariba.com)Exchanges (IMX.com)Industry Consortia (Covisnint.com)

Private Industrial Networks Single-firm networks

(Wal-Mart) Industry-wide

(Globalnetexchange.com)

E-Commerce Enablers Infrastructure

Hardware: Web ServersSoftware: Operating SystemsPayment SystemsDatabases

Hosting Services

PlayersIBM, HP/Compaq, Dell, SunMicrosoft, Linux, Sun,ApacheVerisign, PayPalOracles, IBM, Microsoft, SybaseInterland, IBM, Webintellects