Introduction to E-Commerce

Lecture 2
 E-Business Models

• Concept Of E-Business Models.

• Components of E-Business models.
• B2B Business Model.
• B2C Business Model.
 Concept of E-Business
Models
• The E-Business model, like any business
model, describes how a company make a
plan to generate revenue and make a
profit from operations.
• The model includes the components and
functions of the business, as well as the
revenues it generates and the expenses it
incurs.
E-COMMERCE BUSINESS MODELS
 Introduction of Business
Models
• A business model is a method of doing
business by which a company can generate
revenue to sustain itself. Organizations must
define and execute a strategy to be
successful in e-commerce.
• A business model that aims to use and
leverage the unique qualities of the Internet
and the World Wide Web is called E-Business
Model.
 Cont…
• The components that are contained
within a business model address all
functions of a business, including such
factors as the expenses, revenues,
operating strategies,
• corporate structure, and sales and
marketing procedures. (A company’s
policy, operations, technology and
ideology define its business model)
 Business Model Components
• Value proposition:
- How a company's product or service fulfills
the needs of customers.
• Revenue Model:
- Define how the company will generates
profit.
• Market Opportunity:
-The revenue potential within a company's
intended market space.
• Competitive Environment:
- Other competitors selling same product
in the same market space.
• Competitive Advantage:
- How a company will differentiate the
business from its competition.
• Market Strategy:
-How a company intends to enter a new
market and attract strategy.
• Organizational Development:
- How the company will organize the work
that needs to be accomplished.
• Management Team:
- Employees team responsible for
company’s Growth.
 Multistage Model for
E-commerce
• Search and identification
• Selection and negotiation
• Purchasing products and services
electronically
• Product and service delivery
• After-sales service
Business to Consumer
Business Model
Business to Business (B2B)
Business Model