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

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 Copyright © 2002 Pearson Education, Inc.

E-Commerce Business Models 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. Copyright © 2002 Pearson Education, Inc.

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

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

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

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

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

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

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

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 Copyright © 2002 Pearson Education, Inc.

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 Copyright © 2002 Pearson Education, Inc.

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 Copyright © 2002 Pearson Education, Inc.

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

E-Commerce and 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 Copyright © 2002 Pearson Education, Inc.