The Real Value of “E-Business Models”

thickset Note The real value of e- contrast deterrent examples Research Questions Asked * What is the meaning of e-business copy? * Do the e-Business model really matter to create a thriving e-firm? * apprize only a good e-business model will give the medium to company to get success? * What argon the real key agentive roles determine the survival or also-ran of e-firm? The e-business model is a model utilise by the e-commerce company to better be organized for providing a harvest-feast or assistance, generating revenues and, especially, creating and adapting to the new market and technologies.Summary This article suggests in a slender way how this important model could be applied to different types of company, distinguishing the model by categories. It pays attention how the finical model is non the only prosperous key of the company, but it will an important tool if the company understands the linkage between it, its core business and the marketplace environment. The article presents some cases of trouble and success, and how it creates a thriving for the firm. Supply chain model Direct gross revenue the firm provides a product or services requirely to a customer ( Dell, Cisco, Aol) * Intermediary the firm sells goods from a third cut offy (Amazon) * electronic marketplace puzzle easier the lead communication between buyers and sellers (Autobytel) Revenue model * Income is generated directly from the customer transaction * Free sires where the income is generated through advertising or sponsorship (Napster) Internet business can also be distinguished harmonise to the markets they serve * B2B business to business * B2C business to consumer Click and mortar relies on offline asset * Pure play model purely net establish Failure and key of success Odds of survival of different business models comp atomic number 18d E-tail vs direct gross revenue 0. 931 Portal vs direct sales 0. 971 Marktplace vs direct sales 1. 301 hire vs free 0. 801 Click s/mortar vs pure Net 1101 * E-tail and portal sites be slightly less probably to survive than direct sales sites * Marketplace model are akinly to survive that direct sales sites * Free sites are a little to a greater extent(prenominal) likely to survive than pay sites * Clicks and mortar are 11 times more likely than pure Internet sites.Observation * Firm that are part of separate have a strategic advantages as brands, customers and suppliers relationship and cash * E-models are flexible and they enable rapid growth. Why some company in the same market will get success and some are not? * Logistic strategies Case of eVineyards and Wine. com the first decides to set up avouch sells store in each location generating a quicker and more reliable service. The second decided to outsource by relying on retail partners in various location, but it generated longer delivery times and out-of-stock problems line of reasoning conflict some firms have to cease trading via the Net owe to conflicts with existing channel partners (Starbucks, Levi Strauss, Reebok) * Free and pay web sites the mass of users is attracted when the service is free * Lack of customer benefits is a common cause for the failure of the company * Network externalities some firms focus on creating an high numbers game of user, reeling in a large enough user base to make it attractive for the other users to join (eBay) * Level of utility and value added to chance upon a high target market penetration it may be necessary to be innovative (Priceline)What to take from it? * Each model raises particular issues * There is not a perfect model * Key factor is understanding and managing the particular problem inherent in their model * The chances to be successful are much higher when the firm is a part of a larger group Critique * Its a bit old. * It does not tell us , how is perfect business model look like? Questions for class * Is necessary to have a business model? * What are the key drivers of success in the business model? * How will these transform in the future?