1. Copyright © 2002 Pearson Education, Inc. Slide 2-1 CHAPTER 2 Created by, David Zolzer, Northwestern State University—Louisiana E-Commerce Business Models and Concepts E-commerce business. technology. society. Second Edition Kenneth C. Laudon Carol Guercio Traver

2. Copyright © 2002 Pearson Education, Inc. Slide 2-2 Learning Objectives  Identify the key components of e- commerce business models.  Describe the major B2C business models.  Describe the major B2B business models.  Recognize business models in other emerging areas of e-commerce.  List major e-commerce enablers  Understand how e-commerce affects key business concepts and strategies

3. Copyright © 2002 Pearson Education, Inc. Slide 2-3 E-Commerce Business Models Business model a set of planned activities designed to result in a profit in a marketplace Business plan a document that describes a firm’s business model E-commerce business model a business model that aims to use and leverage the unique qualities of the Internet and the World Wide Web.

4. Copyright © 2002 Pearson Education, Inc. Slide 2-4 Eight Key Ingredients of a Business Model Page 62, Table 2.1

5. Copyright © 2002 Pearson Education, Inc. Slide 2-5 Five Primary Revenue Models Page 66, Table 2.2

6. Copyright © 2002 Pearson Education, Inc. Slide 2-6 Major Business-to-Consumer (B2C) Business Models Page 72, Table 2.3

7. Copyright © 2002 Pearson Education, Inc. Slide 2-7 Major Business-to-Consumer (B2C) Business Models Page 72, Table 2.3 continued

8. Copyright © 2002 Pearson Education, Inc. Slide 2-8 Major Business-to-Business (B2B) Business Models Page 82, Table 2.4

9. Copyright © 2002 Pearson Education, Inc. Slide 2-9 Business Models in Other Emerging Areas of E- Commerce Page 88, Table 2.5

10. Copyright © 2002 Pearson Education, Inc. Slide 2-10 E-commerce Enablers Page 91, Table 2.6

11. Copyright © 2002 Pearson Education, Inc. Slide 2-11 E-Commerce and Industry Structure Page 96, Figure 2.2 Industry Structure: the nature of players in an industry and their relative bargaining power Internet & Web Affect: changes competition, bargaining power of suppliers and buyers, barriers to entry, and substitute products

12. Copyright © 2002 Pearson Education, Inc. Slide 2-12 E-Commerce and Industry Value Chains Page 98, Figure 2.3 Industry Value Chains: set of activities performed in an industry by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs into final products and services Internet & Web Affect: reducing the cost of information and other transactional costs

13. Copyright © 2002 Pearson Education, Inc. Slide 2-13 E-Commerce and Firm Value Chains Page 99, Figure 2.4 Firm Value Chains: set of activities performed within an individual firm to create final products from raw inputs Internet & Web Affect: increasing operational efficiency

14. Copyright © 2002 Pearson Education, Inc. Slide 2-14 Internet-Enabled Value Web

15. Copyright © 2002 Pearson Education, Inc. Slide 2-15 E-Commerce and Business Strategy  Business Strategy  set of plans for achieving superior long- term returns on the capital invested in a firm  Internet & Web offers unique ways to:  differentiate products  obtain cost advantages  compete globally  compete in a narrow market or product segment