Value proposition:The benefits a company
can derive from using EC. •Search and transaction cost efficiency Faster and more informed decision making
Wider product and service selection
4.1.2Typical business models in EC
•Online direct marketing: •Electronic tendering systems (reverse auction): Model in which a buyer requests would-be sellers to submit bids, and the lowest bidder wins. •Name your own price: Model in which a buyer sets the price he or she is willing to pay and invites sellers to supply the good or service at that p; Intermediary; content provide; fullservice provider; shared infrastructure; value community; consolidator of services for large organizations
Economies of scale and scope
•Complementarities
Bundling together to provide more value than separately
•Lock-in Significant switching cost Network externality •Novelty Creates value through innovative ways
One of the major characteristics of EC is that it enables the creation of new business models.
4.1.1Business model:
A method of doing business by which a company can generate revenue to sustain itself. The elementary of e-business:
•Viral marketing: Word-of-mouth marketing in which customers promote a product or service to friends or other people. • Group purchasing(e-co-ops): Quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased.
病毒营销
吃垮必胜客 案例
•Online auction:
•Product and service customization: •Electronic marketplaces and exchanges
•Value chain integrators
•Value chain service providers
We can describe business model from two facets: Revenue models and Value proposition Revenue models: Description of how the company or an EC project will earn revenue. •Sales •Transaction fees : based on the volume of transaction; levied per transaction •Subscription fees •Advertising fees •Affiliate fees •Other revenue sources:licensing fees
•Information brokers
•Bartering •Deep discounting
•Membership
•Supply chain improvers
Discussion :
Introduce an E-commerce company in real world, analyze its business model , including its revenue model and value proposition.
4.2Electronic Marketplaces
ELECTRONIC MARKETPLACES
4.1 The structure of business models
4.2 Electronic markets 4.3 Electronic Intermediation
4.4 Online retailing
4.5 B2B EC
4.1 The structure of business models
•Find the best price:
•Affiliate marketing(联属网络营销):An arrangement whereby a marketing partner(a business, an organization, or even an individual) refers consumers to the selling company’s web site.