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Advertising –subscription mixed model This model has been used for many years by newspapers and magazines. Subscribers pay a fee and accept some level of advertising. Companies that have most success with this type of model tend to be established already. The financial review offers this subscription . You are able to receive some content without subscribing but to obtain all the features and benefits you must subscribe. The financial review also offers a reduced rate if you subscribe to the printed format. Most advertising –subscription models utilize the advertising revenue as their main support. Many online newspapers use the advertising so that a reader can come in and read articles but to view the classifieds you have to subscribe to the service. TD waterhouse offers a subscription service by giving investors real time quotes on stocks and shares. The general public can visit the site and look up a stock quote but the price quoted has a 20 minute lag time. The subscription model is a tough model to make profitable as most users of the web do not want to pay per view. Advertising supported model The advertising supported model is the most common business model in media today. This is also true on the internet. Webmaster provide the content for free to an audience along with advertising messages. The model works if the advertising revenue is greater than the operations of running the website and providing the content. The success of web advertising has been hampered by not knowing how to measure and charge for site visitors views. Successful advertising models include Yahoo.com. Yahoo for many people is a starting point for people using the web. Yahoo has become a major portal on the internet and this has allowed them to charge advertisers to display their ads on their pages. Yahoo can charge advertisers extra because...
pages: 7 (words: 1801)
comments: 0
added: 01/02/2012
Business Models A business model can be defined as the structure and actions by which organizations operate within its marketplace. In other words, a business model is a representation of the activities of a business. Federal Express uses 4 of the 5 major business models for e-commerce: business-to-business (B2B), business-to-consumer (B2B), consumer-to-consumer (C2C), and mobile or "m"-commerce. FedEx has always been a leader in technology amongst its industry competitors, and the success of its highly utilized website is a testament to that. The company was one of the first to harness the power of the Internet and the vast new information pathways it opened up to provide fast, easy and convenient service options for its customers. With a deliberate effort to make each transaction as smooth as possible FedEx has enhanced and expedited the 4 major business models it utilizes. One of the business models FedEx uses is B2B and B2C service providing. FedEx supports companies through online business services such as tracking, online order processing, and online quotes. Businesses can experience a hassle-free transfer of products to other businesses in their supply chain through one-on-one human interaction, or they can go online, at their convenience, and have complete control over the shipping and tracking of their materials. Businesses also have the ease and convenience of managing and tracking shipments to and from consumers with all the services they would receive if they were tracking to a business. When conducting C2C transactions, FedEx uses a number of tools, similar to the ones offered in B2B, to guide the customer through a pleasant shipping experience. A consumer can find tracking information, pickup times and locations, as well as information on transit times. You can even print out your packing label, all with the click of your mouse. FedEx has even braved the mobile...
pages: 2 (words: 475)
comments: 1
added: 09/21/2011
e-Business Models The remarkable growth of the Internet and connectivity to the Internet by individuals and businesses alike has brought many opportunities to create new industries and new efficiencies within businesses and between businesses. These opportunities can be seen in the different e-business models that are currently providing benefits to organizations. This paper evaluates how B2B companies like merisel.com establish webs sites that add value for suppliers and other business users. This paper provides a value analysis and justification for the product, service and information exchange of Amazon.com a leading B2C web site. It evaluates how C2C companies like Edeal.com forms virtual marketplace communities. It also focuses on how these sites are set up through "Porter's Value Chain" and an "Analysis Task Chart" supplied by the University of Phoenix. The final section concludes the paper. Business to Business (B2B) Model Analysis Electronic commerce that creates relationships between businesses is known as a Business-to-Business (B2B) model. B2B EC models are expected to reach ten trillion dollars by 2005 (Turban et. al. 2002, p. 401). B2B transactions involve either spot buying (i.e. purchase of good and services at market prices) or strategic sourcing (i.e. long term contracts based on negotiation between buyer and seller). Transactions occur within company-centric models, many-to-many marketplaces, or other models which help eliminate paper, speed cycle-time, reduce error, increase productivity, reduce cost, and increase customer service and partnership management (pg. 403, 404). An example of a B2B business is merisel.com as discussed below. Meriesel.com Merisel provides software dealers the license to resell. The company distributes software licenses and reseller products from vendors including as Borland, Computer Associates, Corel, Network Associates, Panda, and Symantec (Internet). It also provides resellers with the latest vendor promotional programs, volume discounts, and technical data and support. In addition, Merisel offers e-commerce and logistics support services. The company follows a commodity...
pages: 6 (words: 1483)
comments: 1
added: 11/19/2011
Running a profitable e-business involves accepting continual change and finding the correct business model is not always easy. Thanks to many of the Internet pioneers, corporations now have some history to analyze their desired approach. IBM analyzed over 700 companies that are currently active on the web and noticed that specific online business model patterns emerged (see table below). "Interestingly, while these groupings remain constant across geography, industry, company size or type of commerce, their distinction is marked by their primary focus and market scope" (IBM, p1). The following is a list of these groupings and a brief description each: 1) Offline facilitator: promote their brands online, but do not take online orders in an effort to avoid potential channel conflicts, 2) Context provider: also called affinity groups or content aggregators, they are experts in a particular domain, are aligned with a specific value proposition, and might be based on subscriptions, advertising or transaction fees, 3) Commerce destination: direct sales channels that exist to sell a company's product or service. 4) Online exchange: bring buyers and sellers together and revenue is generated from commission, advertising and subscription fees, 5) Gateway: generally a search engine, ISP or shopping agent deriving most of its revenue from advertising. While most companies find themselves in one of these models hybrid versions do exist. The key concept to remember is that "[…] the dynamic nature of the digital economy demands constant reevaluation and adjustment" (IBM, p3). This paper will look at three different e-business models: Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), and Business-to-Business (B2B) and discuss the differences and similarities between these models. B2C First, we will look at Amazon.com. Amazon sells and ships products to consumers. The company launched its site in 1995 and quickly took on the nations major retailers. The company's web site offers several pages of product categories to choose from. It...
pages: 5 (words: 1215)
comments: 0
added: 02/06/2012
What is business model? Business background: EggHead.com is a leading Internet retailer and auctioneer specializing in technology products for the office and home. Egghead.com offers a wide range of items from computer hardware and software to consumer electronics. Hours of operation: 24 hours a day, 7 days a week. Egghead.com is now recognized as one of the leading companies in on-line sales of software and hardware products. The company is fast becoming a major value-oriented on-line retail enterprise. Do firms compete on value proposition or value cluster? Any company that is engaging in Electronic Commerce in not technology but service orientation. Egghead customers are allowed to remotely manage and expand their site licenses as they grow with minimal effort. Customers can purchase site license for soft products from leading vendors including Microsoft Corporation and Symantec Corporation. Egghead offers over 70,000 items for sale or auction daily including computer products, electronic and office product. Egghead.com offers a set of tools to "make your shopping experience as convenient and informative as possible as possible The 'Reference Desk' is an information resource offering 'buyer's guides', recommendations, tips and tricks, product tours, best selling products etc After you place your order a variety of on-line service tools and email, allow you to be kept informed of the progress of your order throughout the fulfillment process. Orders can be tracked anytime with the automated 'Order Status' feature or by contacting the online 'Customer Service Center' 24 hours a day. As any self-respecting web-site should do, Egghead clearly states its Privacy Policy, Secure Transaction policy and it different Payment and Shipping Options. What are the approaches to developing an online offering, whether the business is providing a product, service or information? By offering retail sales, auctions and deep-discount products under a single umbrella, Egghead.com enjoys a key advantage in the competitive Web marketing place. Shoppers can take advantage of the broad assured selection of...
pages: 4 (words: 951)
comments: 1
added: 11/23/2011
In any market, there are different kinds of customers. They are Core Customers, At-Risk Customers, Non-profit Customers and Spinners. Many a times you find a number of companies that treat customers like kings. A famous example is that of Nordstrom store accepting a set of tire chain from someone who claimed to have bought it from there even though they do not sell tire chains. What most of us do not realize is that these customers who receive such royal treatment are not the Non-profit Customers or the Spinners but they are the Core Customers and At-Risk Customers. A lot of business who portray an image of treating and believing Customers as "Always Right" focus only on these target customers. If the same situation had a non-target customer the treatment would definitely have been different. In today's Global Market business ascertain the lifetime value of customers and Classify customers into target customers and non-target customers. The focus is primarily on target customers who generate most of the profit. There are few others who look at the other segment that is the non-target customers. These business look at non-target customers as potential untapped market. Of course to compete in these two environments, it is important for each kind of business to have the right business model that suits the kind of market they are looking to serve. A business which is competing to serve the non-target customers cannot have the same business model as that of a business which serves the target customers. Bottom feeding businesses should have a business model that is more economical, cost effective and efficient to attain success in that environment. Similarly business that target core customers cannot adopt a business model that is used by bottom feeders. They have to spend more on marketing costs and customer service to attract and...
pages: 3 (words: 624)
comments: 0
added: 01/17/2012
History has shown that developing countries face many obstacles, one of which is disease. Diseases have had devastating effects on civilizations. The Roman Empire, Great Britain, China, and The United States all have had historical plagues that have killed thousands. The diseases that were so devastating to our past civilizations can now be seen in new civilizations, but in other forms. In the world today, nations like the United States and Great Britain have developed to a level where disease can be fought and prevented. Unfortunately, other nations have yet to develop to such a level. Even with treatment from other nations many nations still cannot afford the treatment needed. But, as millions die in South Africa each year, who is socially responsible or more importantly, who is going to pay for it? The South African government appears to be the reason for much of their problems. The South African government has failed at any attempt to stop their epidemic and has resisted their need for help. Since the South African government has neglected its own people outside measures appear to be needed. This has left the social responsibility to the world. The costs and efforts of this battle are tremendous and will take years along with billions of dollars to fight. In order to take on such a battle nations will need to unite and fight as one. Organizations like the United Nations and World Health Organization have already started this battle. With the support from pharmaceutical companies and their nations, the battle can be won. In doing so, the needs of all the groups must be considered. No burden should be left on the shoulders of any single entity. Pharmaceutical companies appear to be willing to cut the costs of their drugs to a rate that is not beneficial for them,...
pages: 2 (words: 443)
comments: 1
added: 04/29/2011
The most common Internet activity is e-mail. E-mail in its present form will never put the U.S. Post Office out of business, because of its lack of emotion. E-mail is widely used. It is as a way of keeping track of friends one would not normally relate to on a regular basis. This can be viewed as a largely positive phenomenon. Keeping in touch via e-mail is like having a pen pal without the deliberate act of sitting down to write a letter, licking envelopes, finding stamps, and going to the post office. Aside from its convenience, e-mail is a somewhat impersonal way of keeping in touch with friends and relatives. Businesses use e-mail as a quick and easy way of keeping in contact with clients on a regular basis. It is less obtrusive than phone calls or voice mail. Follow-up or "after-thought" e-mail is less of an intrusion to customers than a second phone-call or voice message. Business thrives on push-button database contacts for marketing sales and finance. E-mail can also be an excellent form of inter-office communication, an alternative to memo writing. It is the detached nature of e-mail that makes it less professional than a personal letter or "business lunch." Online greeting cards are less personal than tangible forms of birthday greetings and Christmas cards. Electronic cards are acceptable but are not a replacement for close relatives' and friends' birthday card greetings. Compared to the satisfaction one gains in receiving a birthday card in the mail or handed a congratulation letter for a job well done, e-mail is better reserved for more simple types of greetings. While it does have benefits, e-mail cannot replace closer human contacts. A very popular form of online communication that many people find entertaining is chatting. Chat rooms are a way of talking to strangers from...
pages: 2 (words: 380)
comments: 1
added: 07/03/2011
The purpose of this paper is to develop an e-Operations plan for Prehistoric Computers. As we have mentioned on previous papers, technology, when used effectively, can provide any given organization the necessary tools to succeed in today’s competitive business world. In this paper we will going to be focusing on two specific technologies that I’m certain will help Prehistoric Computers achieve its primary goal: increase its sales by 200%. The two technologies are:
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
There are many vendors that provide these kinds of solutions, but our objective in this paper isn’t to select a specific one, rather to explain how these technologies can help Prehistoric Computers became a leader in the e-market of selling refurbished laptop computers. As the new e-Operations Manager, I’m convinced of the benefits these technologies will bring to our company.

Customer Relationship Management (CRM)

Customers are the basis of any organization, and Prehistoric Computers is no exception to that rule. So as management, should be able to answer questions such as the followings, how can we improve customer satisfaction? What are customers looking for? Who are Prehistoric Computer’s customers? How does our customers view Prehistoric Computers? These are just a sample of questions that a technology such as CRM can help us answer. It can not only answer these questions, but can answer them in an intelligent and practical way. Knowing the preferences of our customers will position Prehistoric Computers above the competition. But we have to be very clear that this doesn’t mean that the technology will provide Prehistoric Computers a magic formula to boost its sales. There is going to be a lot of work no matter which CRM software vendor we choose. For example, we need to have very clear which kind of information we need and for what purpose. Too little...
pages: 4 (words: 888)
comments: 1
added: 03/16/2011
Introduced in 1996, Extensible Markup Language (XML) was initially intended to function in the place of Hypertext Markup Language (HTML) as the standard format used to define online document structure (Obasanjo, 2003). These intentions are proving inevitable as business organizations begin to realize the real potential found in the family of XML technologies. Potential in terms of improvement in information management practices measured by a company’s reduction in time and overhead. One such organization that has actually realized these benefits in several facets of their operations is Freightliner, a division of Daimler Chrysler who designs, manufactures, and sells specialized commercial vehicles and will be detailed later (Kotok, 2003). XML has proven to be more than simply an advanced version of HTML. It is helping to create a common language for intra and inter-organizational business processes (Obasanjo, 2003). Several aspects unique to XML set it apart from its parent Standard Generalized Markup Language (SGML) and sibling HTML. These are the same aspects spurring a community of software developers, enterprise leaders, and standards commissions to focus on this budding technology as the lingua franca of document exchange (Geyer, 2003). The meta-language not only defines webpage format but also is actually able to provide descriptions of tabular, structured, and semi-structured data. Network protocols, relational databases, program configuration files, web pages, technical drawings and business documents are all examples of these common data forms found in everyday business operations (Obasanjo, 2003). Like HTML, XML incorporates tags that bracket words and attributes. XML, however, uses these tags to define the data leaving the task of interpretation up to the application employing the data. This undefined vocabulary feature allows extensibility in that industry specific terminology is no longer a programming hurdle as in the past (Bos, 1999). XML applications can easily be tailored to plug in and bridge...
pages: 6 (words: 1530)
comments: 4
added: 03/16/2011
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