CHAPTER 14 - EBUSINESS

CHAPTER 14

Ebusiness

Ebusiness models

Business model - is a plan that details how a company creates, delivers, and generates revenues. Some models are quite simple: A company produces a good and service and sells it to customers.

Ebusiness models fall into one of the four categories : 

1. Business-to-business
2. Business-to-customer
3. Comsumer-to-business
4. Consumer-to-consumer

Ebusiness Models

 

Business-to-business

- Electronic marketplace (e-marketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.

Business-to-consumer 

- Common B2C e-business models include:

–e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office

–e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops

Business types:

–Brick-and-mortar business

–Pure-play business

–Click-and-mortar business

Consumer-to-business

-Priceline.com is an example of a C2B e-business model

- The demand for C2B ebusiness will increase over the next few years due to customers' desire for greater convenience and lower prices. 

Consumer-to-consumer

  

Ebusiness tools for connecting and communicating

- Email

- Instant Messaging

- Podcasting

- Videoconferencing

- Web Conferencing

- Content management system

The challenges of Ebusiness

- Identifying limited market segments

- Managing consumer trust

- Ensuring consumer protection

- Adhering to taxation rules

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