2. Business Model
– A firm’s business model is its plan or diagram for how
it competes, uses its resources, structures its
relationships, interfaces with customers, and creates
value to sustain itself on the basis of the profits it
generates.
– The term “business model” is used to include all the
activities that define how a firm competes in the
marketplace.
3. Business –to- Business (B2B)
applies to businesses buying form and selling to each
other over the Internet
businesses buy and sell goods and services to and from
each other.
Internet provides access to sellers and buyers from all
over the world
Internet can create B2B hubs, to provide a central where
sellers and buyers can go to find each other
4. Business –to- Consumer (B2C)
businesses sell to consumers.
Access to e-shops 24 hours a day
Almost no limit to the number of goods an online retailer
can display
Firms can collect data and offer personalised service
Some goods can be received instantaneously
5. Business –to- Consumer (B2C)
B2C e-commerce reduces transactions costs (particularly
search costs) by increasing consumer access to information
and allowing consumers to find the most competitive price
for a product or service. B2C also reduces market entry
barriers since the cost of putting up and maintaining a Web
site is much cheaper than installing a “brick-and- mortar”
structure for a firm.
When the cost of finding a seller is high, the exchange can
involve an intermediary (e.g. Amazon.com)
6. Consumer-to-Consumer (C2C)
applies to sites primarily offering goods and services to
assist consumers interacting with each other over the
Internet
consumers sell to other consumers.
Usually, this involves an intermediary, such as an action
house.
7. Consumer-to- Business (C2B)
applies to any consumer that sells a product or service to a
business over the Internet
consumers state their price, and firms either take it or
leave it.
Usually, intermediaries play an important role
