This document discusses various e-commerce business models. It begins with an overview of key elements of a business model, including value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. It then covers specific business-to-consumer models like e-tailers, community providers, content providers, portals, transaction brokers, market creators, and service providers. Business-to-business models like e-distributors are also briefly discussed. The document provides examples and descriptions of each model.
E-BM, Business Models and Concepts, 8 Key Elements of a Business Model, Categorizing E-commerce Business Models, B2C Business Models: Portal (Gateway), B2C Models: E- tailor,
E-Commerce Business, Technology & Society, Full presentation covering the business model of e-Commerce starting from implementation, operation and revenue streaming, all about how to automate and sell online.
E-BM, Business Models and Concepts, 8 Key Elements of a Business Model, Categorizing E-commerce Business Models, B2C Business Models: Portal (Gateway), B2C Models: E- tailor,
E-Commerce Business, Technology & Society, Full presentation covering the business model of e-Commerce starting from implementation, operation and revenue streaming, all about how to automate and sell online.
1.
•
•
• An e-commerce business model aims to use and leverage the unique
qualities of the Internet, the Web, and the mobile platform.
• There are eight key elements of a business model.
Value proposition
Defines how a company’s product or service fulfills the needs of customers.
Questions to ask:
• Why should the customer buy from you?
• What will your firm provide that others do not or cannot?
Successful e-commerce value propositions:
• Personalization/customization
•
Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery
2. Revenue model
• Describes how the firm will earn revenue, generate profits, and produce a superior return
on invested capital.
Most companies rely on one, or some combination, of the following major revenue models:
• Advertising (Yahoo)
• Subscription (WSJ)
• Transaction fee (eBay)
• S ales (Amazon)
• Affiliate (MyPoints)
Why may a company want more than one revenue model?
3. Market opportunity
• • Refers to the company’s intended marketspace and the overall potential financial
opportunities available to the firm in that marketspace.
Marketspace
• Area of actual or potential commercial value in which company intends to
operate.
Realistic market opportunity:
•
Defined by revenue potential in each market niche in which company hopes
to compete.
Market opportunity typically divided into smaller niches
4. Competitive environment
• Refers to the other companies operating in the same marketspace selling
similar products.
Who else occupies your intended marketspace?”
• Other companies selling similar products in the same marketspace.
• Includes both direct and indirect competitors.
Influenced by:
• Number and size of active competitors
• Each competitor’s market share
• Competitors’ profitability
•
•
•
•
5. Competitive advantage
• Competitive advantage:
• Achieved by a firm when it can produce a superior product and/or
bring the product to market at a lower price than most, or all, of its
competitors.
“What special advantages does your firm bring to the marketspace?”
• Is your product superior to or cheaper to produce than your
competitors’?
6. Market strategy
• • The plan you put together that details exactly how you intend to enter a
new market and attract new customers.
Details how a company intends to enter market and attract customers Best
business concepts will fail if not properly marketed to potential customers.
Examples:
• YouTube having social network marketing strategy which lets users to
post content on the site for free;
• AOL distributing out free trial CDs through magazines and newspapers
7. Organizational development
• Development plan describes how the company will organize the work that
needs to be accomplished.
Work typically divided into functional departments, e.g, production,
shipping, marketing
E-commerce Business Models, Major Business to Consumer (B2C) business models, Major Business to Business (B2B) business models, Business models in emerging E-commerce areas, How the Internet and the web change business: strategy, structure and process, The Internet: Technology Background, The Internet Today, Internet II-The Future Infrastructure, The World Wide Web, The Internet and the Web : Features
1.
•
•
• An e-commerce business model aims to use and leverage the unique
qualities of the Internet, the Web, and the mobile platform.
• There are eight key elements of a business model.
Value proposition
Defines how a company’s product or service fulfills the needs of customers.
Questions to ask:
• Why should the customer buy from you?
• What will your firm provide that others do not or cannot?
Successful e-commerce value propositions:
• Personalization/customization
•
Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery
2. Revenue model
• Describes how the firm will earn revenue, generate profits, and produce a superior return
on invested capital.
Most companies rely on one, or some combination, of the following major revenue models:
• Advertising (Yahoo)
• Subscription (WSJ)
• Transaction fee (eBay)
• S ales (Amazon)
• Affiliate (MyPoints)
Why may a company want more than one revenue model?
3. Market opportunity
• • Refers to the company’s intended marketspace and the overall potential financial
opportunities available to the firm in that marketspace.
Marketspace
• Area of actual or potential commercial value in which company intends to
operate.
Realistic market opportunity:
•
Defined by revenue potential in each market niche in which company hopes
to compete.
Market opportunity typically divided into smaller niches
4. Competitive environment
• Refers to the other companies operating in the same marketspace selling
similar products.
Who else occupies your intended marketspace?”
• Other companies selling similar products in the same marketspace.
• Includes both direct and indirect competitors.
Influenced by:
• Number and size of active competitors
• Each competitor’s market share
• Competitors’ profitability
•
•
•
•
5. Competitive advantage
• Competitive advantage:
• Achieved by a firm when it can produce a superior product and/or
bring the product to market at a lower price than most, or all, of its
competitors.
“What special advantages does your firm bring to the marketspace?”
• Is your product superior to or cheaper to produce than your
competitors’?
6. Market strategy
• • The plan you put together that details exactly how you intend to enter a
new market and attract new customers.
Details how a company intends to enter market and attract customers Best
business concepts will fail if not properly marketed to potential customers.
Examples:
• YouTube having social network marketing strategy which lets users to
post content on the site for free;
• AOL distributing out free trial CDs through magazines and newspapers
7. Organizational development
• Development plan describes how the company will organize the work that
needs to be accomplished.
Work typically divided into functional departments, e.g, production,
shipping, marketing
E-commerce Business Models, Major Business to Consumer (B2C) business models, Major Business to Business (B2B) business models, Business models in emerging E-commerce areas, How the Internet and the web change business: strategy, structure and process, The Internet: Technology Background, The Internet Today, Internet II-The Future Infrastructure, The World Wide Web, The Internet and the Web : Features
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
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A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
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Improving profitability for small businessBen Wann
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
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2. Class Discussion
Tweet Tweet: Twitter’s Business Model
What characteristics or benchmarks can be used to
assess the business value of a company such as
Twitter?
Have you used Twitter to communicate with friends
or family? What are your thoughts on this service?
What are Twitter’s most important assets?
Which of the various methods described for
monetizing Twitter’s assets do you feel might be
most successful?
Slide 2-2
3. E-commerce Business Models
Business model
Set of planned activities designed to result in a
profit in a marketplace
Examples http://articles.bplans.co.uk/starting-a-business/examples-of-well-known-business-models/1040
Business plan
Describes a firm’s business model
Examples; http://articles.bplans.com/a-standard-business-plan-outline/
E-commerce business model
Uses/leverages unique qualities of Internet and
Web http://www.tutorialspoint.com/e_commerce/e_commerce_business_models.htm
Slide 2-3
4. Eight Key Elements of a Business Model
1. Value proposition
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organizational development
8. Management team
Slide 2-4
5. 1. Value Proposition
How does the product or service fulfill
customer needs
E-commerce value propositions:
Personalization/customization
Convenience
Price/No shipping cost
Quick delivery
Unparalleled Selection
Product/service quality
Slide 2-5
6. 2. Revenue Model
How will the company earn money
Major types of revenue models:
Advertising revenue model- Facebook
Subscription revenue model –Anti virus, Consumer
Reports, Wall Street News Subscription, Online Dating
Transaction fee revenue model- ebay, E-trade, Credit
cards
Sales revenue model – AmazonMP3, Amazon, Gap
Affiliate revenue model – airlines/car rentals/hotels
Slide 2-6
7. Insight on Society: Class Discussion
Foursquare: Check Your Privacy at the Door
What revenue model does Foursquare use?
What other revenue models might be
appropriate?
Are privacy concerns the only shortcoming of
location-based mobile services?
Should business firms be allowed to call cell
phones with advertising messages based on
location?
Slide 2-7
8. 3. Market Opportunity
The intended Marketspace of the
company
Marketspace: Area of actual or potential commercial
value in which company intends to operate
Realistic market opportunity: Defined by revenue
potential in each market niche in which company hopes
to compete
Market opportunity typically divided
into smaller niches
Slide 2-8
9. 4. Competitive Environment
Who else occupies your intended marketspace?”
Other companies selling similar products in the same
marketspace
New entrants into market, substitute products, and
power of consumers and suppliers (nature of competition)
Includes both direct and indirect competitors (e.g.,
Netflix vs Xfinity or DirectTV)
Influenced by:
Number and size of active competitors
Each competitor’s market share
Competitors’profitability
Competitors’pricing
Slide 2-9
10. 5. Competitive Advantage
The special advantages of a firm
Superior or cheaper product than competitors
What makes a product superior?
Important concepts:
Asymmetries exist when one competitor has more resources or
differential access to them compared to other competitors
First-mover advantage
Unfair competitive advantage results from factors of production
that are hard to duplicate or acquire (brands, natural resources,
capital investments)
Leverage using vast resources to move in other markets –
leveraging a large customer base, or lots of money (Apple car)
Perfect markets do not allow for competitive advantage as all firms
have equal access to all factors of production
Slide 2-10
11. 6. Market Strategy
How do you plan to promote your
products or services to attract the
target audience
Details how a company intends to enter
market and attract customers
Best business concepts will fail if not
properly marketed to potential customers -
IBM OS 2
Slide 2-11
12. 7. Organizational Development
The types of organizational structures within
the firm necessary to carry out the business
plan
Describes how firm will organize work
Typically, divided into functional departments,
some organize around products, combination of
both (auto manufacturers)
As company grows, hiring moves from
generalists to specialists
Slide 2-12
13. 8. Management Team
“What kind of backgrounds should the
company’leaders have?”
A strong management team:
Make the business model work
Give credibility to outside investors
Has market-specific knowledge
Has experience in implementing business plans
Slide 2-13
14. Raising Capital
Seed capital personal funds used to start business
Traditional sources
Incubators provide small amount of funding and provide
services to start-ups
Commercial banks
Angel investors wealthy investors who invest money in
exchange for equity share of the business (Shark tank)
Venture capital firms invest funds they manage for other
investors
Strategic partners
Crowdfunding
Using internet to allow individuals to contribute to new
ventures
Slide 2-14
15. Insight on Business: Class Discussion
Crowdfunding Takes Off
What types of projects and companies might
be able to most successfully use
crowdfunding?
Are there any negative aspects to
crowdfunding?
What obstacles are presented in the use of
crowdfunding as a method to fund start-ups?
Slide 2-15
16. Categorizing E-commerce
Business Models
No one correct way (explained on upcoming slides)
The book categorizes them based on:
E-commerce sectors (B2B, and B2C) Table 2.3
E-commerce technology (e.g., m-commerce)
Similar business models appear in more than
one sector
Some companies use multiple business
models (e.g., eBay, Amazon)
Slide 2-16
17. B2C Business Models (Table 2.3)
E-tailer
Community providers create communities for
like minded people (social networks eg. Facebook)
Content provider disseminate info (CNN, ESPN etc)
Portal enable searching to provide info (Yahoo,
Google)
Transaction broker (E*TRADE, Hotels.com, Travelocity)
Market creator creates market spaces (Ebay,
Amazon)
Service provider (Gmail, Verizon, PayPal, VisaNow.com)
Slide 2-17
18. B2C Models: E-tailer
Online version of traditional retailer
(Walmart, Macys)
Revenue model: Sales
Variations:
Virtual merchant (online bank)
Bricks-and-clicks
Catalog merchant (home shopping network)
Sells large variety of household and personal products
Manufacturer-direct
Low barriers to entry
Slide 2-18
19. B2C Models: Community Provider
Provide online environment (social network)
where people with similar interests can
transact, share content, and communicate
Examples: Facebook, LinkedIn, Twitter,
Pinterest
Revenue models:
Typically hybrid, combining advertising,
subscriptions, sales, transaction fees, and so on
Slide 2-19
20. B2C Models: Content Provider
Digital content on the Web:
News, music, video, text, artwork
Revenue models:
Subscription; pay per download (micropayment);
advertising; affiliate referral
Variations:
Syndication- firm does not own material just distributes
it (newspaper horoscopes and crossword puzzles are syndicated
content)
Web aggregators (shopping.com, Travelocity, Priceline)
aggregate info and add value to it
Slide 2-20
21. Insight on Technology: Class Discussion
Battle of the Titans: Music in the Cloud
Have you purchased music online or subscribed to a
music service? What was your experience?
What revenue models do cloud music services use?
Do cloud music services provide a clear advantage
over download and subscription services?
Of the cloud services from Google, Amazon, and
Apple, which would you prefer to use, and why?
Slide 2-21
22. B2C Business Models: Portal
Searching capability plus an integrated package of
content and services
Revenue models:
Advertising, referral fees, transaction fees,
subscriptions
Variations:
Horizontal/general includes all internet users
Vertical/specialized (vortal) provides a directory of
links to information related to a particular industry or subject
matter
Searching capabilities
Slide 2-22
23. B2C Models: Transaction Broker
Process online transactions for consumers
Primary value proposition—saving time and money,
and enabling online transactions (stocks, credit card
and PayPal payments)
Revenue model:
Transaction fees
Industries using this model:
Financial services
Travel services and entertainment
Job placement services
Slide 2-23
24. B2C Models: Market Creator
Create digital environments where buyers and
sellers can meet and transact business
Examples:
Priceline
eBay
E*trade
Revenue model:
Transaction fees, fees to merchants for access
Slide 2-24
25. B2C Models: Service Provider
Online services
Example: Google—Google Maps, Gmail, and so
on
Value proposition
Valuable, convenient, time-saving, low-cost
alternatives to traditional service providers
Revenue models:
Sales of services, subscription fees, advertising,
sale of marketing data
Slide 2-25
26. B2B Business Models
B2B relies on EDI (electronic data interchange)
Net marketplaces (explained in upcoming slides)
E-distributor
E-procurement
Exchange
Industry consortium
Private industrial network
Slide 2-26
27. B2B Models: E-distributor
Version of retail and wholesale store,
MRO (explain next slide) goods, and indirect
goods
Owned by one company seeking to
serve many customers
Revenue model: Sales of goods
Example: Grainger.com
Slide 2-27
28. MRO
MRO - Maintenance, repair and operations
Supplies consumed in the production process but
which do not either become part of the end product
or are not central to the firm's output. MRO items
include consumables (such as cleaning, laboratory,
or office supplies), industrial equipment (such as
compressors, pumps, valves) and plant upkeep
supplies (such as gaskets, lubricants, repair tools),
and computers, fixtures, furniture, etc.
Slide 2-28
29. B2B Models: E-procurement
Creates and sells access to digital markets where
participants transact for indirect goods
B2B service providers, application service
providers (ASPs)
Revenue model:
Service fees, supply-chain management,
fulfillment services
Example: Ariba- system provides sellers with the ability to manage
catalogs, bids, purchases and invoices and provides buyers with the ability
to search for suppliers, negotiate savings, procure goods and services and
track spending.
http://www.ariba.com/about/our-story
Slide 2-29
30. B2B Models: Exchanges
Independently owned vertical digital marketplace
where hundreds of suppliers meet a small number
of large commercial purchasers
Revenue model: Transaction, commission fees
Create powerful competition between suppliers
Tend to force suppliers into powerful price
competition; number of exchanges has dropped
dramatically
Example, Walmart has the ability to negotiate the
best prices in the industry
Slide 2-30
31. B2B Models: Industry Consortia
Industry-owned vertical digital marketplace
open to select suppliers
More successful than exchanges
Sponsored by powerful industry players
Strengthen traditional purchasing behavior
Revenue model: Transaction, commission
fees
Example: Exostar used by defense industry -
http://www.exostar.com/Mission/
ICAMR: International Consortium for Advanced Manufacturing Research
Slide 2-31
Search Results
ICAMR: International Consortium for Advanced Manufacturing Research
Search Results
ICAMR: International Consortium for Advanced Manufacturing Research
32. Private Industrial Networks
Digital network used to coordinate among
firms engaged in business together
Represents 75% of B2B business by large firms
Often owned by a large network firm
Example: Walmart’s network for suppliers
Cost absorbed by network owner and
recovered through production and
distribution efficiencies
Slide 2-32
34. How E-commerce Changes Business
E-commerce changes industry structure
by changing:
Rivalry among existing competitors
Barriers to entry
Threat of new substitute products
Strength of suppliers
Bargaining power of buyers
Slide 2-34
35. Industry Value Chains
Set of activities performed by suppliers,
manufacturers, transporters, distributors,
and retailers that transform raw inputs into
final products and services
Internet reduces cost of information and
other transactional costs
Leads to greater operational efficiencies,
lowering cost, prices, adding value for
customers
Slide 2-35
37. Firm Value Chains
Activities that a firm engages in to
create final products from raw inputs
Each step adds value
Effect of Internet:
Increases operational efficiency
Enables product differentiation
Enables precise coordination of steps in chain
Slide 2-37