Electronic Commerce Business Models and Concepts Dr. Robert Chi Chair and Professor, IS department Chief editor, Journal of Electronic Commerce Research

E-commerce Business Models A set of planned activities (business processes) designed to result in a profit in a marketplace. Key factors Value proposition How a company’s product or services fulfill the needs of customers. Why should the customer buy from you? Revenue model How the firm will earn revenue, generate profits. Market opportunity What market space do you intend to serve and what is its size Competitive environment What special advantages does your firm bring to the market space Market strategy How do you plan to promote your products or services to attract your target audience

Continued.. Organizational development Management team What types of organizational structures within the firm are necessary to carry out the business plan Management team What kinds of experience and background are important for the company’s leaders to have

Major B2C Business Models (handout 1) Portal: yahoo.com Etailer: amazon.com Content provider: wsj.com Transaction broker: etrade.com Market creator: ebay.com Service provider: mycfo.com Community provider: about.com

Major B2B Business Models (handout 2) Net Marketplaces E-distributor: staples.com E-purcurement: Ariba.com Exchanges: gepolymerland.com Industry consortia: Private Industrial Networks Single firm networks Buyer, seller Industry-wide networks

Other Business Models (handout 2) C2C: ebay.com P2P kazaa.com M-commerce:

In class exercise Develop an e-commerce business model which is preferred to be unique and design the first page of its web site Teamwork, 20 minutes