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Information about E-business

Published on February 27, 2014

Author: teriwoja

Source: slideshare.net

CONTENT  What is Model  What are the different online business models?  Explanation of the models with details Advantages And Disadvantages Of Models:  What is EBay How EBay used business models: The importance of business model for website.

What is Model?  Model is the systematic or structured approaches which instruct the ways by following, we can easily perform any respective business activity.  Business Models: A method of doing business by which a company can generate revenue to sustain itself. E-Commerce business model: Is a business model that aims to use and leverage the unique qualities of the Internet and the World Wide Web.

       Brokerage Advertising Infomediary Merchant Manufacturer Subscription Community

    Brokerage/ Brokers: Are market-makers, they bring buyers and sellers together and facilitate transactions. Advertising: The advertising business model is an extension of the traditional media broadcast model. Intermediary: To make an easier transactions between buyers and sellers and receive a percentage of the value of each transaction. Merchant: Wholesalers and retailers of goods and services. seller can be bricks and clicks.

   Manufacturer Or Direct Sellers: A company that creates a product or service, to reach buyers directly and thereby compresses the distribution channel. Subscription: Charge viewers a subscription fee to view content. Typically monthly or yearly to access a service or product. Community : It depend on user loyalty, Users have a high investment in both time and emotion.

Advantage of Brokerage, :  Time saving. Selling a business or even buying.  Confidentiality. If business owners want to keep their plans in private. Disadvantage:  Expensive. Keep in mind that brokers also charge commissions.  No assurance that business brokers will be your comrade.

Advantage of Advertising  Low-Cost: advertisement can be displayed as very comprehensive compared to other media. The presentation to the market Internet advertisements would be best because they are already hooked into the net, surfing websites Disadvantage:  Scope: It is a "limited" market that can be conquered, if you only use the Internet for advertising display.  Additional costs: If you decide to rent the help of a professional, a freelancer or a company for the production of your site.

Faster transactions: Merchant accounts are not only convenient but also fast.  Customer convenience: most customers don’t carry much cash with them these days.  Take your business online: Disadvantage:  Security: As soon as one starts talking about digital methods, there are always security issues involved.  Frauds: This consists of a person using a credit card that belongs to someone else. These kinds of frauds can be avoided by verifying the customer’s identity before accepting the card. 

Dell gains from the direct customer relationship.  the latest technology was introduced faster than through the indirect channel Disadvantage:  The Dell direct model focused on speed of execution and minimum inventory.  In Dell's case, the direct model is easy to understand but hard to replicate. 

Self-sustenance: Because the content is provided by individual users,  Improved user experience: the feeling of contributing materials by oneself will improve user’s experience Disadvantage:  Stickiness: Stickiness is how long each user will stay at the site or use the functions provided by Firm under community model.  Insurance of product quality and consistency: Regulate quality standards on content is also difficult for community model. 

 EBay is the world's online marketplace; a place for buyers and sellers to come together and trade almost anything.

How EBay used business models: Brokerage: EBay itself is regarded as a brokerage model online business. This creates a network of buyers and sellers in which goods can be exchanged online. Advertising: EBay use an advertising model in which sellers can use basic platform service for free and pay EBay for advertising service to increase their exposure Community: EBay’s Community Help boards and Announcement Boards that help members answer and solves problems as a community.

It provides the starting point that allows a company to maximize its profits.  Transform business processes into digital form  Low-Cost Marketing: The Internet offers a variety of ways to market your business at little or no cost.  Unlimited Markets: The reach of the Internet is global, so the entire world is a potential market for your products or services. How Web Business Can Grow With These Model:  Advertising: Is a simple form of website that will provide certain content which web businesses can grow faster online,  increased closing percentage, increased customer satisfaction, or increased retail traffic 

 You can create a blog or write articles that provide useful information about your field that can attract new customers. Conclusion  The business model is the key factor that leads to success in start-ups. It provides the starting point that allows a company to maximize its profits—the sooner the business model is in place, the better.  EBay has established itself as a prominent auction broker. An auction broker provides the means in which people looking to sell can host an auction using the website.

    E-Business will be a secure, flexible and integrated approach combining the systems and processes that run core business operations. It, Focus on customers Create value with continuous innovation Create an e-business application architecture

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