1. Dr. John Abraham University of Texas Pan American
E-Commerce Two
Dr. John Abraham
University of Texas Pan American

2. E-Commerce Business Models
A business model is a set of planned activities (business processes) to earn a profit.
It is the center of the business plan
Laudon and Traver 2003

3. Business Model Value proposition Revenue model Market opportunity
Competitive environment
Competitive advantage
Market strategy
Organizational development
Management team

4. Value proposition
How the product offered fulfills the needs of customers.
Why would customers choose you over others.
Personalization, customization, ease of product search etc.
Think why amazon’s model is successful.
Do research on current market trends.

5. Revenue Model
How the firm will earn revenue, generate profits, and produce a superior return on investment.
Some businesses does not charge the users any fees. How do they do that?
Look at the revenue models of: yahoo.com, wsj.com ebay.com, amazon.com, mypoints.com

6. Market Opportunity
What is the company’s market place?
Market Niches.

7. Competitive environment
Who are the competitors? Both direct and indirect.

8. Competitive Advantage
How will you gain market share?
Existing customers?
Superior product?
Lower price?
Scope?
Think of netzero.com

9. Market Strategy
The plan that outlines how you will enter the market and attract customers.
Think of all the CDs that you get these days.

10. Organization Development
How a one-man vision can be instilled in an organization?
How will the growth be directed an organized?
How will the duties be shared?

11. Management team
Bring in heavy weights
Or grow your own?