E-Business And E-Commerce Model
E-business and E-commerce are commonly used interchangeably in many books, they have distinct definition as e-business model which is a ‘framework’ for classifying e-businesses in terms of strategic business objectives, and e-commerce model, which is a schema for business, processes that shows, in general terms, where the goods and money flow. All the business models used in practice mainly focus on the value proposition and revenue generation by using e-business processes.
(a) Value proposition : Since the focus of the value proposition is on the customer, firms have to state the proposition from the customer's perspective. Value propositions may be based on lowest cost (Buy.com), superior customer service (Amazon.com), reduction in product
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The company can collect revenue either by renting a small space on its pages or getting paid for every click on the advertisement. Google adsense is a perfect example of this. There are many paths out there regarding online advertising company to explore. Advertising should always be targeted directly at the readers to compliment websites content, most advertising companies are good at doing this job. This model is an extension of the traditional media broadcasting model. This model only works when the volume of viewer traffic is large or highly …show more content…
• Advisors provide online consulting and advice (Accenture, IBM Business Consulting Services).
• Information and new services providers create, package, and deliver online information (Wall Street Journal online).
• Custom suppliers design, produce, and distribute customized products and services (Boeing, McGraw-Hill).
(13) Infrastructure Provider E-Business Models : (B2B, B2C) Unlike previous business models that use the digital infrastructure of the Internet, these models provide that infrastructure.
• Infrastructure retailers sell the infrastructure (CompUSA).
• Infrastructure marketplaces take inventory and complete the sales transactions (TechData, MicroAge).
• Infrastructure exchanges (Converge).
• Horizontal infrastructure portals include, principally, Internet service providers, network service providers, and Web hosting providers (AOL, Sprint).
• Vertical infrastructure portals host software applications for rent (Oracle Business online).
• Equipment/Component Manufacturers
• Software Firms
• Infrastructure Services Firms
• Custom Suppliers, Hardware
• Custom Suppliers,
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