E-Business Models and Examples Quiz

Study Notes

E-Business

E-business, also known as electronic business, refers to the conduct of online business processes on the web, internet, extranet, or a combination of these. It encompasses a wide range of business processes, including buying and selling goods and services, servicing customers, processing payments, managing production and supply chains, collaborating with business partners, sharing information, running automated employee services, recruiting employees, and more.

Types of E-Business Models

There are four primary e-business models:

Business-to-consumer (B2C): This model involves selling products and services directly to consumers online. The buyer purchases them via the internet.
Business-to-business (B2B): In this model, companies use the internet to conduct transactions with one another. B2B transactions usually involve multiple online transactions at each step of the supply chain.
Consumer-to-business (C2B): In this model, consumers create their own value and demand for goods and services. Examples include reverse online auctions and airline ticket websites such as Priceline and Expedia.
Consumer-to-consumer (C2C): This model involves consumers acting as both buyers and sellers via third-party-facilitated online marketplaces such as eBay and Amazon.

Examples of E-Business

E-business is used by companies of various sizes and industries. For example, Amazon, the world's largest online retailer and marketplace, has used its e-business model to disrupt and expand into numerous well-established industries, including publishing and supermarkets. Uber and Lyft, both of which built businesses that match drivers with people needing rides, disrupted the taxi and livery services industries. Travel sites like Expedia, Travelocity, and TripAdvisor enable consumers to research, plan, and book all or pieces of their trips based on personalized criteria, such as price, consumer ratings, and location. Even traditional companies like Schindler Group, a multinational elevator and escalator company founded in 1874, have incorporated e-business by using IoT and other technologies to add internet and mobility services to their offerings.

Advantages of E-Business

E-business has brought significant changes to how enterprises, government agencies, nonprofit organizations, and other institutions operate. It allows businesses to increase productivity, lower costs, move more quickly toward digital transformation, and upgrade processes. Electronic invoicing, automated billing, and digital payment systems have reduced the time workers devote to these tasks, many of which were handled manually just a few decades ago. E-business also enables self-service options for consumers, personalized experiences, and speedy, secure interactions.

Conclusion

E-business has transformed the way businesses operate and has had a significant impact on various industries. It has led to the rise of new business models and the adoption of advanced technologies, such as AI and machine learning, to enhance customer experiences and streamline processes. As technology continues to evolve, e-business will continue to shape the future of commerce and trade.