CHAPTER 5

BUSINESS MODELS FOR E-

BUSINESS

Ms. NELDA ROSIMA

INSTRUCTOR
 WHAT IS AN E-BUSINESS MODEL
➢ E-business models utilize advanced communication technologies
and digital information to streamline various business processes
online. These processes include customer relationship
management (CRM), supply chain management, payment
processing, employee services and recruitment, and information
sharing.
➢ are used by companies to create value and become profitable
online.
➢ were developed in response to the increasing prevalence and
technological capabilities of the internet.
➢ aims to use and leverage the unique qualities of the Internet,
the Web, and the mobile platform.
FOUR BROAD TRANSFORMATION 3

TO E-BUSINESS
1.Domestic business to multinational business
2.An economy based on industrial manufacturing
to one that characterized by knowledge- based
services.
3.Enterprise resource management to enterprise
network management, and
4.Manual, document-driven business processes to
those that are electronic, automated, and
paperless.
4 COMPONENTS OF E-BUSINESS 4

MODELS
1.Value proposition
2.Customer relationship
3.Revenue model/streams
4.Activities, capabilities and resources
 1. VALUE PROPOSITION
Is a tool used to ensure a product or service is positioned around customer values
and needs

Annual revenue growth

2. REVENUE MODEL 6
BUSINESS MODEL TYPES
CATEGORIES OF E-BUSINESS 8

MODEL
FUNCTIONALITY TRANSACTION
TYPE
1.COMMUNITY 1.BUSINESS-TO-
CONSUMER (B2C)
MODEL
2.BUSINESS-TO-
2.ADVERTISING BUSINESS (B2B)
MODEL 3.CONSUMER-TO-
BUSINESS (C2B)
3.BROKERAGE 4.CONSUMER-TO-
MODEL CONSUMER (C2C)
5.BUSINESS-TO-
GOVERNMENT
(B2G)
PLATFORM BUSINESS MODEL
MARKETPLACE BUSINESS MODEL 10
NETWORK EFFECTS 11
ASYMMETRIC BUSINESS MODEL 12
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 ADVANTAGES OF E=BUSINESS 20

MODEL
Advantages to the customer
1. Buying 24/7 all year long
2. Convenient
3. Time-saving

Advantages to the organization

1. No geographical limitation
2. Money-saving
3. Increasing efficiency of companies

Advantages to the society

1. Customers do not need to move from one place to another to do their shopping
2. It reduces the pricepoint range of items due to less fixed expenditures, so consumers
with lower incomes can also able to buy the items
3. It has allowed remote zones in the country side to contact items and amenities that were
not accessible previously.
 DISADVANTAGE OF E-BUSINESS 21

MODELS
Non-technical disadvantage
1. Inability to test items first-hand before buying
2. Lack of the personal touch
3. Cost and product feature comparison

Technical disadvantage
1. Need for internet connection
2. Security issue
3. Software development
 22

• https://www.youtube.com/watch?v=yTPoJQDcG-4
 23

“ BUSINESS OPPORTUNITIES ARE

LIKE BUSES. THERE'S ALWAYS

”
ANOTHER ONE COMING.

Richard Branson
THANK YOU FOR
LISTENING