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

2. 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

3. 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

4. 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

5. 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

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

7. 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