E-Business Model 1.

0
Digitize the offline world

DIGITIZE THEM!
Encyclopedia Dictionary Auction Donation Coffee Forum Shopping Plaza Library Magazine Newspaper Bank Classifieds Retail Shop Wallet University Supermarket Wholesaler Radio Phone Television Music Shop Bookstore Diary

DIGITIZE THEM!
e-Encyclopedia e-Auction e-Donation e-Dictionary e-Coffee Forum e-Shopping Plaza e-Library e-Magazine e-Newspaper e-Bank e-Classifieds e-Retail Shop e-Wallet e-University e-Supermarket e-Wholesaler e-Radio e-Phone e-Television e-Music Shop e-Bookstore e-Diary

Dot-com Became Dot-bomb

NASDAQ Composite index peaked in March 2000 and burst before 2001
* http://en.wikipedia.org/wiki/Dot-com_bubble

e-Supermarket failure ‡ Webvan.com spent far too much on infrastructure (close to one billion USD). It went bankrupt in 2001 before it had even turned a profit. ‡ Chowhuay.com went under construction since 2001.

Why did some models go well, but some go hell?

E-Business Model 2.0
Make people s life easier

The Transaction Triangle
50 Baht

200 Baht 30 Baht

It is transaction cost!

What is Transaction Cost?
y From theory y Fixed cost of exchange billing, invoicing, providing receipts, and handling payments. y Search costs buyers and sellers search for each other. y Communication costs costs of exchanging information. y Information costs gathering and providing many types of market data. y Monitoring costs buyers and sellers place their trust in the intermediary. y In my opinion y Transaction cost is the cost that makes our life difficult. y Normally, we frequently feel that our life are not difficult.

Compaq & Dell Case Study

T3 < T1 + T2

T3 Manufacturer Customer

PantipMarket.com Case Study
Classifieds Magazine T2 + T3 < T1 PantipMarket.com T4 < T2, T5 < T3

T1 Seller Buyer

Google AdWords & AdSense Case Study
Online Agency Online Agency

Publisher

Advertiser

4 Ways for Your Online Business
1.

Disintermediary

4 Ways for Your Online Business
Disintermediary 2. Be intermediary
1.

4 Ways for Your Online Business
Disintermediary 2. Be intermediary 3. Reduce transaction cost to compete with existing intermediary
1.

4 Ways for Your Online Business
Disintermediary 2. Be intermediary 3. Reduce transaction cost to compete with existing intermediary 4. Be intermediary of intermediaries
1.

Google Acquired DoubleClick
y DoubleClick is a big player in display advertising. y Google bought DoubleClick for $3.1 billion on April 13

(while YouTube was acquired for $1.76 billion). y Google s net profit in 2006 was $3.0 billion. y DoubleClick s annual revenue was about $300 million. y One of DoubleClick s subsidiaries is Performics, the third rank provider of Affiliate Marketing in US. y What will happen if Google try to step in Affiliate Marketing business?

Before Acquisition
AdWords

Affiliate Marketer

Product Owner

Publisher

Cakeholder Before Acquisition

After Acquisition

Product Owner

Affiliate Marketer

Publisher

Cakeholder After Acquisition
12.5 12.5 15 60

Product Owner Google & Performics Affiliate Marketer Publisher

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