2. BUSINESS MODEL
It never discuss how a business mission of the company can be
realized.
So for understanding ecommerce can be defined
As any form of business transaction in which parties interact
electronically.
It involves steps like :- marketing , ordering , payments and support
delivery etc. 'Brick And Mortar'
A traditional "street-side" business that deals with its customers
face to face in an office or store that the business owns or rents.
The local grocery store and the corner bank are examples of
"brick and mortar" companies. Brick and mortar businesses can
find it difficult to compete with web-based businesses because
the latter usually have lower operating costs
3. ELECTRONIC MARKET HAVE TREE FUNCTIONS
Matching buyers and sellers
Facilitating commercial transactions
Providing legal infrastructure
The interaction between participants is
supported by electronic trade process that
are search , valuation payment and
settlement , logistics
4. DEFINITION of 'Electronic Commerce - ecommerce'
A type of business model, or segment of a larger business
model, that enables a firm or individual to conduct
business over an electronic network,
typically the internet. Electronic commerce operates in all
four of the major market segments: business to business,
business to consumer consumer to consumer and
consumer to business. It can be thought of as a more
advanced form of mail-order purchasing through a
catalog. Almost any product or service can be offered via
ecommerce, from books and music to financial services
and plane tickets.
5. E COMMERCE
Defined as technology mediated exchange
between parties as well as electronically based
inter and intra organizational activities that
Facilitates such exchange.
E business model can be classified in three
types:-
1. model based on relation ship of transaction
parties
2. on transaction type
3. revenue model
4. by distribution channels
6. Business model can be defined as an
architecture of product , services and
information flow , including description of
buyers players , role and revenue sources.
Example :- selling of digital content , sell
goods and services
7. E COMMERCE CLASSIFICATION TO THE
TRANSACTION PARTIES ARE AS FOLLOWS
B2C BUSINESS TO CONSUMER
B2B BUSINESS TO BUSINESS
B2G BUSINESS TO GOVERNMENT
C2C CONSUMER TO CONSUMER
C2B CONSUMER TO BUSINESS.
8. B2C
RETAIL SALES IT IS CALLED E-RETAIL
ONLINE PURCHASE OF AIRTICKET .
IT INCLUDE VITUAL MALLS WHICH ARE
WEBSITES THAT HOST MANY ONLINE
MERCHANTS.
E TAILER :- OFFERS TRADITIONAL OR
WEB SPECIFIC PRODUCTS OR
SERVICES ONLY OVER ARE CALLED
VIRTUAL MERCHANTS INTERNET
9. WHY TO OPT B2C BUSINESS
INEXPENSIVE COST
BIG BUSINESS OPPORTUNITIES
GLOBLIZATION
REDUCTION IN OPERATING COST
CUSTOMER CONVINIENCE
KNOWLEDGE MANAGEMENT
10. HOW DOES B2C WORKS
VISITING THE CUSTOMER MALL
CUSTOMER REGISTER
CUSTOMER BUY THE PRODUCT
MERCHANT PROCESS THE ORDER
CREDIT CARD IS PROCESSED
OPERATION MANAGEMENT
SHIPING AND DELIVERY
CUSTOMERS RECEIVES AFTER SALES
SERVICE.
11. B2B BUSINESS
DEFINITION of 'Business To Business - B To
B'
A type of commerce transaction that exists
between businesses, such as those involving a
manufacturer and wholesaler, or a wholesaler
and a retailer. Business to business refers to
business that is conducted between companies,
rather than between a company and individual
consumers
12. ADVANTAGES OF B2B
Direct interaction with customer
Focus sales promotion
Building customer loyalty
Cost saving
Scalability:- round the clock access.
13. TOOLS AND TECHNIQUE OF B2B BUSINESS
USE PRICING AS A TOOL.
USING APPLICATION SERVICE
PROVIDER MODEL. Companies providing
services not in cd but through web
GENERIC MODEL KNOWN AS
PERSONALIZED ATTENTION TO VARIOUS
BUSINESS CUSTOMERS. Example FED X.
COMPARISON SHOPPING
14. ELEMENTS OF B2B BUSINESS
CENTRALIZED MARKET PLACE
STANDARDIZED DOCUMENTATION
PRICE HISTORY , AFTER SALES
CONFIDENCIAL TRANSACTION.
BENEFITS :- neutral , regulated , pricing
mechanism regulated , clearing and
settlement.
15. B2B BUSINESS MODEL WORKS
1. review catalogue.
2. identify catalogue
3. define requirement
4. post request
5. view vendor reputation
6. select vendor
7. fill out purchase order PO.
8 SEND PO TO VENDOR
9. PREPARE INVOICE
10. MAKE PAYMENT
16. MODEL DESCRIPTION
AGGREGATOR :- A ELECTRONIC COMPANY
THAT OFFERS TOTAL HOME BUYING
SERVICE FROM SEARCHING TO FINANCING
UNDER ONE SITE.
HUBS AND PROCESS INTEGRATION :-
INTEGRATED OF PROCESS
COMMUNITY OR ALLIANCES:- USED TO
ACHIEVE HIGH LEVEL INTEGRATION
CONTENT :- IS THE END PRODUCT OF THIS
MODEL OF B2B BUSINESS. EXAMPLE TO E
COMPANIES SELLS CONTACT FOR
BIDDING, JOB SITES.
AUCTION:-
17. C2C
Consumers sells directly to other consumers
via online classified ad and auctions.
Example ebay
C2B BUSINESS :- CALLED REVERSE
AUCTION OR DEMAND COLLECTION
MODEL enables buyers to name their own
price , own biding , for specific goods or
services generating demand.
18.
19. MODELS BASED ON TRANSACTION TYPE :-
On the basis of value addition :- addition due
to opportunity that it offers on web for
product or services.
On the basis of control:- at the high end of
control their is hierarchical control at the
lower end no control. It is self organizing
control by policies of websites.
20. TRANSACTION TYPES TAKES BY VARIETIES OF
WAYS
Brokerage , aggregators , community , value chain ,
subscription, manufacturer, advertising,
Affiliates.
Brokerage :-
Price discovery is key mechanism
meeting point of buyers and sellers
Mode of transaction
It is free market
Global network of buyers and sellers
Virtual market place
21. ADVANTAGES OF BROKER MODEL
C2C TRADING
GLOBAL REACH
TRADING CONVINIENCE
SENSE OF COMMUNITY
EFFICIENT ACCESS
22. WHAT IS AGGREGATOR
a website or program that collects related
items of content and displays them or links to
them.
26. CAPABILITIES REQUIRED FOR MODEL
Big investment
Handling goods
Management of business in distribution.
Optimization of resources
Integration of resources.
27. VALUE CHAIN MODEL
Moves business away from discrete (separate)streams of data about the
product beingmade to one unified pool of information.
The goal is to develop full and seamless interaction among members of
the chain resultingto low inventories.
It is about the companies who extends outside the company to
suppliersand customers.
Example alta vista shopping.com
28. COMMUNITY MODEL
A unified body of individuals
People of common interest
Example :- E communities
Interacting population
Functions :- discussion (personal & professional) , information ,
increase loyalty , build business
29. COMMUNITY STRUCTURES
1. news letters :- one way
2:- discussion list :- list given for discussion
3:- one of the major issue is threads (different topics of
conversation)
4. chat rooms :- social sites networking.
30. ELEMENTS OF COMMUNITY MODEL
1. community
2. proper structure and guidelines
3.moderator. A moderator responsible
for each group or list.
4. clear strategy.
31. MANUFACTURER MODEL OR DIRECT MODEL
company reaches directly to buyers and their by compress the distribution
channel.
Sell by website
Purchase :- sale of product to right owner.
Lease:- agreement
License :- sales of product requirestransfer of usage rightsto buyers.
Brand contents:- created by manufacturer for productplacement.
32. ADVERTISING MODEL
The broadcaster in this case is website ,provides content ,(not for
free) and services .(like email, chat rooms) together with
advertising message in form of banner and advertisement.
Search engine uses this idea relates advertisement to the keyword
entered in query.
33. EXAMPLE
Some one searches information on holiday, an
advertisement is shown for hotel chain on the
page with search results.
Double click
34. TYPES
Portal:- search engine carries varied content or services. Yahoo
classified :- list items for sale or purchase(membership fee)
monster.com
User based registration:- content based site that provides free
access to users but requires demographic details to submit NYT
TIMES DIGITAL.
35. QUERY BASED REGISTRATION:- SELLS LINKS
POSITIONING.(GOOGLE).
CONTEXTUAL ADVERTISING:- FREEWARE DEVELOPERS
WHO BUNDLE ADS WITH THEIR PRODUCT. EZULA.
36. DIFFERENT WEB ADVERTISING FORMAT
BANNERS :- ADV. ON WEBPAGE
VERTICAL COLUMN :- ON A FRAME WEBPAGE POSITION
ALONG SIDE REQUESTED CONTENT.
POP UP WINDOWS :- WINDOW WITH ADV.
INTERSTITIAL:- FULL SCREEN ADV THAT APPEARS ON WEB
BROWSERS WHILE PAGE IS LOADING.
38. INTROMERCIALS :- ANIMATED FULL
SCREEN ADV. AT THE ENTRY OF SITE.
ULTRAMERCIAL :- ONLINE INTERACTIVE
ADV. REQUIRES USER TO RESPOND IN
ORDER TO WADE MESSAGE.
41. E AUCTION LOWEST PRICE
An e-auction provides procurement
professionals with competitive prices for
their products, pitching the suppliers
directly against each other to see who can
offer the lowest prices. It also streamlines
the procurement process and saves time
since each supplier cannot submit a full
proposal.
