E-Commerce Business Model and Concept This session designed for "E-Commerce" Subject. Design by Heru Wijayanto @ 2020

1. BAB II
E-Commerce Business
Model and Concept
Heru Wijayanto, M.M, M.BA, M.MT

3. DEFINISI MODEL BISNIS
• “Method of doing business by which a company can
sustain itself – that is generated revenue.” Michael Rappa

4. Slide 2-4
E-commerce Business Models—Definitions
 Business model: set of planned activities designed to result in
a profit in a marketplace
 Business plan: document that describes a firm’s business
model
 E-commerce business model: aims to use and leverage the
unique qualities of Internet and Web

5. Slide 2-5

6. Slide 2-6
Value Proposition
 Defines how a company’s product or service fulfills
the needs of customers
 Questions to ask:
 Why will customers choose to do business with
your firm instead of another?
 What will your firm provide that others do not or
cannot?
 Examples of successful value propositions:
 Personalization/customization
 Reduction of product search costs
 Reduction of price discover costs
 Facilitation of transactions by managing product
delivery

7. Slide 2-7
Revenue Model
 Describes how the firm will earn revenue,
generate profits, and produce a superior
return on invested capital
 Major types:
1. Advertising revenue model
2. Subscription revenue model
3. Transaction fee revenue model
4. Sales revenue model
5. Affiliate revenue model

8. Slide 2-8
1. Advertising Revenue Model
 Web site that offers content,
services and/or products also
provides a forum for
advertisements and receives
fees from advertisers.
 Common model used for high
traffic Web sites.
 It includes selling banner ads,
classified ads, sponsor ads,
pop-up ads, etc. Revenue at
Yahoo, Webcrawler, and
Geocities is generated this
way.
Personals
Finance
Ad Server
ISP
Advertiser
Exposures
$
Advertising Revenue Model
http://www.demingcenter.com/html_files/roi/pdf_2annual/Higbie_Pricing.ppt#5
Sports

9. Slide 2-9
2. Subscription Revenue Model
 Web site that offers
users content or
services charges a
subscription fee for
access to some or all
of its offerings
 Examples:
 Consumer Reports
Online
 Yahoo! Platinum
Subscription Revenue Model
ISP
$
Messaging
Financial News
Email
http://www.demingcenter.com/html_files/roi/pdf_2annual/Higbie_Pricing.ppt#5

10. Slide 2-10
3. Transaction Fee Revenue Model
 Company that receives a fee (commission) for enabling or
executing a transaction.
 eg. In auction sites when a seller is successful in auctioning
off a product site receives transaction fee
 eg. Online stock broker receives fees each time it executes
a transaction on behalf of customers
 Examples:
 eBay.com
 E-Trade.com
 Visa
 Schwab

11. Slide 2-11
4. Sales Revenue Model
 Company derives revenue by selling goods,
information, or services to customers
 Examples:
 Amazon.com
 LLBean.com
 Gap.com

12. Slide 2-12
5. Affiliate Revenue Model
 Sites that steer business to an “affiliate” receive
a referral fee or percentage of the revenue from
any resulting sales
 Example:
 MyPoints.com
 Google

13. Slide 2-13
Five Primary Revenue Models
Table 2.2, Page 62

14. Slide 2-14
Market Opportunity
 Refers to a company’s intended marketspace
and the overall potential financial opportunities
available to the firm in that marketspace
 Marketspace: the area of actual or potential
commercial value in which a company intends
to operate
 Realistic market opportunity is defined by
revenue potential in each of market niches in
which company hopes to compete

15. Slide 2-17
Market Strategy
 A plan that details how a company intends to
enter a new market and attract customers
 Best business concepts will fail if not properly
marketed to potential customers

16. Slide 2-18
Organizational Development
 Describes how the company will organize the
work that needs to be accomplished
 Work is typically divided into functional
departments
 Move from generalists to specialists as the
company grows

17. Slide 2-19
Management Team
 Employees of the company responsible for
making the business model work
 Strong management team gives instant
credibility to outside investors
 A strong management team may not be able
to salvage a weak business model, but
should be able to change the model and
redefine the business as it becomes
necessary

18. Slide 2-20

19. Slide 2-21

20. Slide 2-22
Categorizing E-commerce Business Models:
Some Difficulties
 No one correct way
 We categorize business models according to e-commerce
sector (B2C, B2B, C2C)
 Type of e-commerce technology used can also affect
classification of a business model
 Some companies use multiple business models

21. Slide 2-23
How the
Internet
Influences
Industry
Structure
SOURCE: Porter.

22. Questions ?

23. Tugas Individu I
• Tugas Individu
• Pilihlah sebuah E-Commerce yang ada di Indonesia
(Tidak boleh ada yang sama, silahkan saling koordinasi).
• Analisalah berdasarkan Komponen dari E-Commerce
Business Model (Seperti pada tabel disamping).
• Jangan lupa cantumkan sumber datanya.
• Desainlah laporan anda semenarik mungkin.
• Akan ada tambahan nilai bagi desain laporan yang
menarik.

24. Tugas Individu BLOG (II)
• Tema Blog Minggu ini adalah : “KEGAGALAN E-COMMERCE”
• Carilah sebuah e-commerce, baik yang ada di Indonesia maupun di dunia,
yang mengalami kegagalan.
• Kegagalan yang dimaksud disini adalah bisa berupa (1) Ecommerce
tersebut merugi, (2) Penurunan Omzet besar-besaran, (3) Ecommerce
tesebut Tutup.
• Bahaslah e-commerce tersebut, disertai dengan analisa mengapa/alasan
e-commerce tersebut mengalami kegagalan.

25. DEADLINE TUGAS INDIVIDU DAN BLOG
21 Maret 2020
23.00
SOFT COPY (PDF) - EDMODO