Expanded & better-focused markets: E-Commerce can expand market reach dramatically. For example, small market/small business can market its business over on a national/global scale.
Cost reduction: cost of performing traditional business tasks e.g. external& internal communication, inventory control, accounting, customer relations management & procurement-can be slashed.
Quality gains: reduction in
transaction times & error rates, elimination of manual steps
WHAT IS ..? BUSINESS MODEL: “The first determinant of a firm’s performance. A method which a firm builds & uses its resources to offer its customers better value than its competitors and to make money doing so.” -e.g. Amazon, eBay, Unreal mind (Malaysia) Pg 4. text book.
SO WHAT IS INTERNET /E-COMMERCE BUSINESS MODELS? “It is a system (components, linkages& associated dynamics) that take advantage of the properties of the Internet to make money.” pg 7. text book Linkage Relationship among the Components Components
product & services
Source of Revenue
Dynamics The ability to respond to changes, /opportunities threats. Eg. DELL
INTERNET BUSINESS MODELS CATEGORY PURE PLAY -No existing b-model -Can execute new b-model without worrying existing model CLICKS & MORTAR -Brick & mortar ->click & mortar -Must concern with its past b-model to avoid failure & to maintain competitive Advantage. Classic examples Amazon.com vs Barnes & Noble
FORMS OF INTERNET B-MODEL BROKERAGE ADVERTISING INFOMEDIARY MERCHANT MANUFACTURER AFFILIATE COMMUNITY SUBSCRIPTION UTILITY TO MAKE MONEY!!
SUMMARY OF THE COURSE 5 PARTS TO THE BOOK. THE INTERNET COMPONETS,LINKAGE,DYNAMICS & EVALUATION ROLE COMPETITIVE APPLYING THE CONCEPT CASE STUDIES
ASSESSMENT QUIZ ( I & II ) 20% Group Work (Case Study Analysis of labuan & kk?) ( 2 @ 20%) 40% Final Exam 40% _______________________________________________ TOTAL 100%