Podcast
Questions and Answers
A business model is a set of planned activities designed to result in a loss in a marketplace.
A business model is a set of planned activities designed to result in a loss in a marketplace.
False
A firm's business plan describes its business model.
A firm's business plan describes its business model.
True
E-commerce business models do not leverage the unique qualities of the Internet and Web.
E-commerce business models do not leverage the unique qualities of the Internet and Web.
False
One of the key elements of a business model is market strategy.
One of the key elements of a business model is market strategy.
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Revenue model is not considered as one of the key elements of a business model.
Revenue model is not considered as one of the key elements of a business model.
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Competitive advantage is not a part of an e-commerce business model.
Competitive advantage is not a part of an e-commerce business model.
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Ace & Tate solely focuses on physical retail presence and does not sell online.
Ace & Tate solely focuses on physical retail presence and does not sell online.
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One of the learning objectives in Chapter 2 is to describe major B2C business models.
One of the learning objectives in Chapter 2 is to describe major B2C business models.
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'E-Commerce 2018: Business.Technology.Society Fourteenth Edition' is the source of the content mentioned.
'E-Commerce 2018: Business.Technology.Society Fourteenth Edition' is the source of the content mentioned.
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'Ace & Tate' does not engage with its demographic.
'Ace & Tate' does not engage with its demographic.
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Study Notes
B2B Business Models
- E-Distributor Model: a digital version of retail and wholesale store, offering MRO goods and indirect goods, owned by one company serving many customers, with revenue generated from sales of goods (e.g., Grainger)
- E-Procurement Model: creates digital markets for indirect goods, providing scale economies, with revenue generated from service fees, supply-chain management, and fulfillment services (e.g., Ariba)
- Exchanges Model: independently owned vertical digital marketplace for direct inputs, with revenue generated from transaction and commission fees, creating powerful competition between suppliers
- Industry Consortia Model: industry-owned vertical digital marketplace open to select suppliers, more successful than exchanges, sponsored by powerful industry players, strengthening traditional purchasing behavior, with revenue generated from transaction and commission fees (e.g., SupplyOn)
B2C Business Models
- Portal Model: offers search plus an integrated package of content and services, with revenue generated from advertising, referral fees, transaction fees, and subscriptions for premium services (e.g., horizontal/general, vertical/specialized, search)
- Transaction Broker Model: processes online transactions for consumers, with primary value proposition of saving time and money, and revenue generated from transaction fees (e.g., financial services, travel services, job placement services)
- Market Creator Model: creates a digital environment where buyers and sellers can meet and transact, with revenue generated from transaction fees and fees to merchants for access (e.g., Priceline, eBay, on-demand service companies like Uber, Airbnb)
- Service Provider Model: offers online services, with value proposition of providing valuable, convenient, time-saving, and low-cost alternatives to traditional service providers, and revenue generated from sales of services, subscription fees, advertising, and sales of marketing data (e.g., Google)
Key Elements of a Business Model
- Value proposition
- Revenue model
- Market opportunity
- Competitive environment
- Competitive advantage
- Market strategy
- Organizational development
- Management team
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Description
Test your knowledge on B2B e-distributor and e-procurement models including their revenue models and examples like Grainger and Ariba. Learn about creating digital markets for indirect goods and the differences between serving many customers and transacting for goods.
