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direct and indirect competition
competitive environment
influenced by the activity size, profitability, price of competitors products
competitive environment
who else occupies your intended marketspace?
competitive environment
subscription revenue model
content or service at subscription fee
distributes information content over the web
content provider
community provider
creates an online environment where people with similar interest can transact, share interests, photos, and videos, with like minded people; receive interest-related information
e-procurement
creates and sells access to digital electronic markets
affiliate revenue model
a company steers consumers to a business, which they get a kick back from (MyPoints, Travelocity)
e-distributer
a company that supplies products and services directly to individual businesses
business model
a set of planned activities designed to result in profit
portal
offers users powerful search tools as well as an integrated package of content and services all in one place
describes how a company will organize that work that needs to be accomplished
organizational development
typically divided up into functional department like shipping, marketing, customer support, production, finance
organizational development
what types of organizational structures within the firm are necessary to carry out the business plan?
organizational development
examples of service provider
photosharing, video sharing, and user generate content; google maps, esurance
also known as a private trading exchange (PTX)
private industrial networks
designed to coordinate the flow of commination between firms engaged in business together
private industrial networks
transaction fee revenue model
receives a fee for enabling or executing a transaction (eBay, Etsy)
market opportunity
refers to the company's intended marketspace and the overall potential financial opportunities available to the firm in the marketspace
industry structure
refers to the nature of the players in an industry an their relative bargaining power
competitive environment
refers to the others companies selling similar products and operating in the same marketspace
complementary resources
resources and assets not directly involved in the production of the product but required for success, such as marketing, management, financial assets and reputation
first mover advantage
results from being the first person in the market
how will you earn money?
revenue model
examples of transaction broker
scottrade, wells fargo, sharebuilder, bank of american, e-trade
transactional broker
site that process transaction for consumers that are normally handled in person, by phone, or by mail
marketspace
the area of actual or potential commercial value in which a company intends to operate
It is estimated that revenues for all types of B2B e-commerce in the United States will total around $6.3 trillion in 2015, compared to
about $531 billion for all types of B2C e-commerce
examples of private industrial networks
ace hardware, walmart, Chrysler
competitive advantage
achieved by a firm when it can produce a superior product and bring the product to market at a lower price than most or all of its competitors
common revenue models
advertising, subscription, freemium, transaction fee, sales, affiliate
e-commerce business plan
aims to use and leverage that unique characteristics of the internet, web and mobile platform
examples of market creator
airbnb, über, eBay, amazon
e-distributor example
amazon supply
exchange
an independent digital electronic marketplace where suppliers and commercials purchasers can conduct transactions
examples of portals
aol, msn, ahoo, gmail
there are four variations of e-tailers
brick-and-clicks, virtual merchants, catalog merchant, and manufacturer direct
market creator
builds a digital environment where builders where buyers and sellers can meet, display products, search for products, and establish a price for products
personalization
common value proposition
reduction of product search cost
common value proposition
transaction/product delivery ease
common value proposition
firms also compete based on scope
competitive advantage
what special advantages does your firm bring to the marketspace?
competitive advantage
value proposition
defines how a company product or service fulfills the needs of customers
revenue model
describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital
a higher level way to categorize e-commerce business models is using B2C and B2B categorization
difficulties with e-commerce models
although e-commerce enablers provide the infrastructure necessary for e-commerce sites to exist, grow, and prosper
difficulties with e-commerce models
companies typically combine e-commerce business model
difficulties with e-commerce models
mobile e-commerce is not a distinct business model, and is often confused as such
difficulties with e-commerce models
private industrial networks
digital network designed to coordinate the flow of communications among first engaged in business together
business plan
document that describes a firms business model
business to business models
e-distributor, e-procurement, exchanges, industry consortium, and private industrial networks
single firm online version of retail and wholesale store; supply maintenance, repair, operation goods, indirect inputs
e-distributors
single firm creating digital markets were sellers and buyers transact for indirect inputs
e-procurement
online versions of retail store, where customers can shop at any hour of the day or night without leaving their home or office
e-tailer
major business-to-consumer business model
e-tailer, community provider, content provider, portal, transaction broker, market creator, and service provider
brick-and-clicks are
e-tailers
consumers that are time starved are great prospects for
e-tailers
management team
employees of the company responsible for making the business model work
typically vertically integrated companies
exchanges
where hundreds of suppliers meet a smaller number of very large commercial purchasers
exchanges
the internet offers firms many opportunities to increase their operational efficiency and differentiate their products
firm value chain
a competitive market advantage for a firm that results from being the first into a marketplace with a serviceable product or service
first-mover advantage
amazon
first-mover advantage
advertising revenue model
forum for advertisements and receives money
freemium revenue model
gives some away for free and charges for up grades (LinkedIn)
industry consortia/consortium
industry owned vertical digital marketplaces that serve specific industries
firm value chain
is a set of activities a firm engages into create final products from raw inputs or goods
value chain
is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services
competitive advantage scope
local, national, or international markets
sales revenue model
makes money for the exchange of a product or service
what kinds of experiences and background are important for the company's leaders to have?
management team
typically divided into smaller niches of revenue sources
market opportunity
what marketspace do you intend to serve, and what is it size?
market opportunity
how do you plan to promote your products and services to attract your target audience?
market strategy
the plan you put together that details exactly how you intend to enter a new market and attract new customers
market strategy
by reducing the cost of information, e-commerce offers each of the key players in an industry value chain new opportunities to
maximize their positions by lowering cost and/or raising prices
business-to-business is divided up by
net marketplace and private industrial networks
value web
networked business ecosystem that coordinates the value chains of several firms
perfect market
no competitive advantages or asymmetries bc all firms have equal access to resources
service provider
offers online, good for time starve people
companies are market creators that have developed online platforms that allows people to sell services, such as
transportation or spare tools that relies o the cloud and web and phones to conduct transactions
a combination of revenue models are often used by businesses
true
becoming profitable and survive in e-tailing market is very hard without a prominent brand
true
business strategy and plan are not the same but can sometimes be very similar they should align
true
e-commerce has changed industry structure
true
e-commerce has the potential to change the relative strength of competitive forces, such as bargaining power of suppliers, and barriers to entry into the industry
true
its difficult to determine if e-commerce technologies have had an overall positive or negative impact on firm profitability
true
new forms of distribution created by a new market entrant can completely change the competitive forces
true
online business seek to reach individual consumers
true
the total cost of entering a new market into the e-tailing market is low
true
personalization and customization of product offerings, reduction of product search costs, reduction of price discovery costs, and facilitation of transactions by managing product delivery
value proposition
why should your customers buy from you?
value proposition
leverage
when a company uses its competitive advantage in surrounding markets
unfair competitive advantage
when one firm develops an advantage based on the fact that other firms cannot purchase the resource
asymmetry
when one firm in the market has more resources than competitor: financial backing, knowledge, information or power
to determine value proposition ask
why do customers choose this company over the competitors
