11. Value chain integrator model :
They offer a range of service across the value chain.
The fifth approach of classifying e-business models based on the strategy of providing service as:
1. Dynamic pricing model :
The dynamic pricing model is one which has a number of different instantiations. Basically, such models treat the price of a product or service (primarily a product) as variable and open to negotiation. The name-your-price instantiation of this model is where the customer of a site offers the price that he or she thinks is reasonable for a product or service. The administrator of the Web site will pass on this bid to the provider of the product or service who will decide whether to accept it. The comparison pricing sub-model encompasses
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Typical sites which come under this category include gaming sites where users can play computer games using their browser, sites which run free raf>es and sites which offer free software. Such sites do not earn any revenues from the products or services they offer; revenue is earned indirectly, for example by means of banner adverts or by receiving revenue from sites which you have to visit before experiencing a service or buying a product. One of the largest free product areas is that of free software. Organisations in this area include those who raise revenues and those who do not. An example of a company in the former category is Red Hat. This is a company that provides free versions of the LINUX operating system. You can download LINUX from the Red Hat Web site and install it on your computer without paying a penny to the company. Red Hat raises their revenues through support, packaging distributions onto CDs and providing services to companies who employ LINUX for application development. Companies such as Red Hat are the analogue of those companies who sell a razor for little or no cost but make their profit from selling the razor blades. There are a number of sites in the Internet which do not make any money from issuing software. These are sites associated with Open Source …show more content…
Laudon and Carol Guercio Traver (2003) [7] in their e-commerce textbook, E-Commerce: Business. Technology. Society, take a slightly different approach to classification of business models. They list and describe various models by type or mode of electronic commerce—B2C (portal, e-tailer, content provider, transaction broker, market creator, service provider, community provider), B2B (e-distributor, e-procurement, exchanges, industry consortia, single-firm networks, industry-wide networks), and others (C2C, peer-to-peer, mobile commerce). For each model, the authors include variations ("submodels"), examples, a description, and revenue
In the podcast “Chuck E. Cheese’s: Where a Kid Can Learn Price Theory”, Stephen J. Dubner discusses the current violent outbreaks, along with some possible theories. One of his listeners, Nathan Corroy, a financial adviser in Milwaukee, Wisconsin, mentions that a contributing factor may be the pricing strategy. Right now, all the arcade games at Chuck E. Cheese’s cost one token to play, even though some games last longer than others. Thus, Dubner asks an important question “How does the price of a good or a service effect consumer behavior?” (Dubner).
GameStop is an American video game retailer. It operates primarily in the buying and selling of video game, gaming consoles and sometimes in electronics. The company sells both new and previously used video game hardware; physical and digital video games, pre-owned and value video game products; personal computer (PC) entertainment software in various genres, such as role-playing games (RPG’s), simulators, adventure and many more; digital merchandises, including PlayStation Plus and Xbox Live subscriptions; video game accessories, such as controllers, gaming headsets, and other add-ons for use with gaming hardware and software; strategy guides, magazines, and gaming-related posters and toys. The company is headquartered in Texas and different
According to Porter’s value chain analysis company activities are divided in Primary and Supportive activities. Primary activities are directly related to creation of product, process sale and services. Supportive activities are provided to sustain primary activities. For a worldwide retail outlet like Target to add a value on its product depend upon the continuous supply of cost effective merchandise and add value to the costumers. Value Chain Analysis of TARGET
This means from 2016 to 2017, there was a decrease in profit. This is common in companies in their mature stage, which Johnson & Johnson is. Value Chain Value chain analysis is a tool used for the examination of the strategically relevant activities of a business in order to understand the behavior of costs and the potential sources of differentiation. Johnson & Johnson takes every opportunity to maximize the positive impacts and minimize the risks along its value chain.
Diversification: Upstream integration with suppliers, Sephora exchanges data collected from their digital channels with their manufacturers for new products development. Role of Sephora digital channels in company’s marketing mix Product: Sephora has more than 250 brands with approximately 13,000 products which include skin care, makeup, bath, fragrance, beauty accessories, hair products as well as other beauty and body care products and each of these categories has various sub-categories (CNBC, 2017). The company's product offering is able to meet the diverse customers' needs. Even though most of the products sold by the company were manufactured by so many other brands, each of these brands have a different product concept which aligned
Oracle and SAP(German based company) compete with Microsoft for the business services market. Microsoft’s most popular product is its Operating System. There is much competition in this area with Apple’s iOS and other smaller firms such as Red Hat, that distribute open-source operating systems such as Linux. Microsoft distributes tablets as well that compete with other companies such as Apple. Logitech are another big competitor because they also make computer accessories.
1.1. The aviation value chain The value chain shown below describes all the activities involved in air travel. Airports serve as a gateway to aviation and hence are a key link in the air transport value chain. They play a vital role in facilitating tourism and business travel and global supply chains as well.
The different strategies are; Penetration pricing, Skimming pricing, Competition pricing, Product Line pricing, Package pricing, Psychological pricing, Premium pricing, Optional pricing, Cost Based pricing and Cost Plus pricing. Each strategy has their advantages but also disadvantages. For a company to choose the right strategy they have to take into account their corporate objectives. A company might use more than one pricing strategy for its products it all depends on the objectives. According to Steve Job's vision for Apple was to always create a premier product and charge a premium price.
Question 2: To do a resource-based analysis of any organization, it needs to go through different steps, first identify the three categories of the resources , the tangible ,intangible, and the human resources , second identify the capacity of the organization to put its resources for a desired end and in good use, third to decide on suitable strategy for the organization we need to do SWOT analysis to determine the organization strength and weakness compared to the competitors, third what are the key successful factors of the organization that can be determine by identifying the customers of the organization and their needs, and what the organization will do to survive the competition ( Hall&Keynes,2015) also audit analysis to Ford resources , and value chain analysis to Ford activities . In the next section, there will a brief explanation about the steps mentioned above , followed by an application to each step to, Ford motor which was incorporated in Delawae in 1919, it is a global automotive industry leader in Dearborn and Michigan, distributed vehicles across six continents the core business of Ford , designing and manufacturing cars, marketing , financing and servicing a full line of Fords cars, trucks, SUVs, and electrified cars, and Lincoln luxury car (Ford annual report,2015). Resource-based view (RBV) is an essential theory for strategic managers , considering the organization resources the assets , capabilities organization
This is extremely popular in the hotel industry. In this chapter we will overview these techniques. Let’s start with the second degree price discrimination. In theory, the second degree price discrimination is referred to quantity discounts and occurs when different prices are set for different quantities of the same goods, for example buying a 6-pack of Coca-Cola cans will cost less than buying 6 Coca-Cola cans separately. However, in reality, second degree price discrimination takes place not necessarily by adjusting the quantity of the good, but also the quality of the good.
The pricing strategy or pricing policy is one of the most important managers make for a product as it affects the profitable outcome and competitiveness that a product may make. (Toni, 2017). A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market by dropping the price or offering more benefits with the device such as packages.
International Business Machines (IBM)- 1) Introduction IBM (International business machines) corporation is one of the biggest multinational computer technologies and IT consulting company spread over 170 countries with 330,000 employees. It has its headquarters in Armonk, New York, United States. IBM started its business on June 16, 1911. It is the manufacturer of computer parts for hardware and software and, consulting services and hosting services. And also offers services in infrastructure.
Terms of Reference H&M also known as Hennes & Mauritz is one of the most leading apparel companies globally; one of creativity and style. The company is one which believes that it should offer to its customers fashion and quality at the best price. The aim of this report is to assess H&M’s company organizational culture as well as the core competencies and capabilities of the company; and how it has used these to attain the position at which it is at today in the fashion and apparel industry.
Walmart, Amazon, and EBay 1. Analyse each of these companies using the value chain and competitive forces models. The value chain model of Amazon in itself is internally and operationally the best that adds value and maintains competitive advantage. The primary activities include Inbound logistics for example quality control, receiving, raw materials, control and supply schedules; Operations for example packaging , maintenance, quality control; Outbound Logistics for example
Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was started in the year 2007. In its formative days Flipkart mainly dealt with books but now, it has expanded to electronic goods and a variety of other products. Primary categories of products sold at Flipkart are: • Books • Mobiles & Accessories • Computers • Home and Kitchen • Personal and Health Care • Gaming • Watches and Fragrances • Music and Movies • Stationery Some other facts about Flipkart are • It has 2,000,000 registered users • 8,000,000 customer visits every month.