Published on February 27, 2014
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.
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