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    Ch2. E-Commerce Business Strategies

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    ragragraghad

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    Ch2. E-Commerce Business Strategies

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    ragragraghad
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    Copyright:

    © All Rights Reserved
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    0 views13 pages

    Ch2. E-Commerce Business Strategies

    Uploaded by

    ragragraghad

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 13

    E-COMMERCE BUSINESS

    MODELS
    Business model
    • A set of planned activities designed to result in a profit in a
    marketplace
    Business plan
    • A document that describes a firm’s business model
    E-commerce business model
    • A business model that aims to use and control the unique qualities of
    the internet, the web, and the mobile platform
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL
    1. Value proposition ‫اقتراح القيمة‬
    • How a company’s product or service fulfills the needs of customers.
    Typical e-commerce value propositions include personalization,
    customization, convenience, and reduction of product search and price
    delivery costs.
    2. Revenue model ‫نموذج اإليرادات‬
    • Describes how the firm will earn revenue, generate profits, and
    produce a superior return on invested capital.
    • Advertising revenue model a company provides a forum for
    advertisements and receives fees from advertisers.
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL

    • Subscription revenue model a company offers its users content


    or services and charges a subscription fee for access to some or
    all of its offerings.
    • Transaction fee revenue model a company receives a fee for
    enabling or executing a transaction.
    • Sales revenue model a company derives revenue by selling
    goods, information, or services .
    • Affiliate revenue model a company steers business to an
    affiliate and receives a referral fee or percentage of the revenue
    from any resulting sales..
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL
    3. Market Opportunity ‫فرصة آلسوق‬
    • Refers to the company’s intended marketspace and the overall
    potential financial opportunities available to the firm in that
    marketspace.
    • Marketspace the area of actual or potential commercial value in
    which a company intends to operate.
    4. Competitive Environment ‫بيئة تنافسية‬
    • The direct and indirect competitors doing business in the same
    marketspace, including how many there are and how profitable
    they are.
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL

    5. Competitive advantage ‫ميزة تنافسية‬


    • Firms achieve a competitive advantage when they can produce a
    superior product and/ or bring the product to market at a lower
    price than most, or all, of their competitors.
    6. Market strategy ‫استراتيجية السوق‬
    • The plan a company develops that outlines how it will enter a
    market and attract customers.
    EIGHT KEY ELEMENTS OF A
    BUSINESS MODEL

    7. Organizational Development ‫التطوير التنظيمي‬


    • Plan that describes how the company will organize the work that
    needs to be accomplished.
    8. Management Team ‫فريق اإلدارة‬
    • Employees of the company responsible for making the business
    model work.
    MAJOR BUSINESS-TO-CONSUMER
    (B2C) BUSINESS MODELS
    E-TAILER
    • Online retail stores, often called e-tailers, come in all sizes, from giant
    Amazon to tiny local stores.
    • E-tailers are similar to the typical bricks-and-mortar storefront, except
    that customers only have to connect to the Internet or use their
    smartphone to place an order.
    • Some e-tailers, which are referred to as “bricks-and-clicks,” are
    subsidiaries or divisions of existing physical stores and carry the same
    products.
    MAJOR BUSINESS-TO-CONSUMER
    (B2C) BUSINESS MODELS
    Community provider ‫مزود املجتمع‬
    • Creates an online environment where people with similar interests can
    transact (buy and sell goods); share interests, photos, and videos;
    communicate with likeminded people; and receive interest-related
    information
    Content provider
    • Distributes information content, such as digital news, music, photos,
    video, and artwork
    Portal
    • Offers users powerful search tools as well as an integrated package of
    content and services all in one place
    MAJOR BUSINESS-TO-CONSUMER
    (B2C) BUSINESS MODELS
    Transaction broker ‫وسيط املعامالت‬
    • Processes transactions for consumers that are normally handled in
    person, by phone, or by mail
    Market creator
    • Builds a digital environment where buyers and sellers can meet,
    display products, search for products, and establish a price for
    products.
    Service provider
    • While e-tailers sell products online, service providers offer services
    online.
    MAJOR BUSINESS-TO-BUSINESS
    (B2B) BUSINESS MODELS

    E-distributor
    • A company that supplies products and services directly to individual
    businesses.
    E-procurement firm ‫شركة املشتريات اإللكترونية‬
    • Creates and sells access to digital markets
    Exchange
    • An independent digital marketplace where suppliers and commercial
    purchasers can conduct transactions
    MAJOR BUSINESS-TO-BUSINESS
    (B2B) BUSINESS MODELS

    Industry consortia ‫اتحادات الصناعة‬


    • Industry-owned vertical marketplaces that serve specific industries
    Private industrial network ‫شبكة صناعية خاصة‬
    • Digital network designed to coordinate the flow of communications
    among firms engaged in business together

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