Notes

1. BUSINESS MODEL

2. BUSINESS MODEL
 A business model is the way that a company sells
products to its customers. It describes how a
business creates, delivers, and captures value.
Different types of Business Model:
1) Business-to-Business (B2B)
2) Business-to-Consumer (B2C)
3) Consumer-to-Consumer (C2C)
4) Business-to-Government (B2G)
5) Consumer-to-Business (C2B)

3. EVOLUTION OF INTERNET BUSINESS MODELS
 E-Business established themselves in 2 phases:
The first phase comprised the following trends:
1. Business organizations rushed to establish an e-
commerce website.
2. Little or no regard was given to check how reliable
the site needed to be.
3. It was a matter of beating competition.
Drawback: There was no or little integration with the
production side of the business .
Reasons: Growth of consumer base , Request for
real-time order status and Return of products .

4.  In the Second phase , organizations started
planning about integrating the back-end and real
time transaction processing .
Business are using Internet Technologies and
integrating their systems and processes more
efficiently are now breaking the barrier .
This has been possible due to :Capitalizing on a
continuous business proposal and correctly applying
technology .

5. BUSINESS-TO-BUSINESS MODEL
 This model needs two or more business organizations
that do business with each other . It entails commercial
activity among companies , through the Internet as a
medium.
Types of B2B :
1) Supplier Oriented
2) Buyer Oriented
3) Intermediate Oriented
For example, an automobile manufacturer makes several
B2B transactions such as buying tires, glass for
windscreens, and rubber hoses for its vehicles. The final
transaction, a finished vehicle sold to the consumer, is a
single B2C transaction.

6. BUSINESS TO CONSUMER (B TO C)
 Business or transactions conducted directly
between a company and consumers who are the
end-users of its products or services.
 This model enables consumers to browse , select
and merchandise online from wider variety of
sellers and at better prices .

7. CONSUMER-TO-CONSUMER (C2C)
 Consumer to Consumer (or citizen-to-
citizen) electronic commerce involves the
electronically facilitated transactions between
consumers through some third party. A common
example is the online auction, in which a consumer
posts an item for sale and other consumers bid to
purchase it.

8. BUSINESS-TO-GOVERNMENT
 An example of a business to government company
is a firm that offers IT consulting services to a
government agency. The government uses the B2G
arrangement in order to keep its technology up to
date and in working condition, while at the same
time limiting expenses by not taking on full-time
staff.

9. CONSUMER-TO-BUSINESS (C2B)
 Consumer-to-business (C2B) is a business
model in which consumers (individuals) create
value and businesses consume that value. For
example, when a consumer writes reviews or when
a consumer gives a useful idea for new product
development then that consumer is creating value
for the business if the business adopts the input.

10. BUSINESS MODEL :6 COMPONENTS
 Value Proposition
 Market Segment
 Value Chain Structure
 Creation of revenue and profits
 Place in the value network
 Competitive Strategy

11. ROLE OF A BUSINESS MODEL
Technical
Inputs
Business
Model
Economic
Outputs

12. REVENUE MODEL VERSUS BUSINESS MODEL
 A revenue model is part of a business model. A
business model shows the framework for an entire
business and allows investors and bankers as well
as the entrepreneurs themselves to have a quick
way of evaluating that business.
 The revenue model is a key component of the
business model as it is an essential factor for
delivering products or services with high margins
and funding the business