B 2 Cmodels

By:Shyna
Definition
Business
model
A set of planned activities designed to result

in a profit in a marketplace.
A business model is the method of doing
business by which a company can sustain itself
that is, generate revenue. The business model
spells out how a company makes money by
specifying its position in the value chain.
2
Definition Cont
E-commerce business model
A business model that aims to use and leverage the

unique qualities of the Internet and the World Wide Web.
It includes the roles and relationships among a firm's

customers, allies, and suppliers; the major flows of
product, information, and money; and the major benefits
to the participants.
Eight Key Ingredients of a Business

Model
Business Model
Components
Value Proposition
Key Questions
Why should the customer buy from you?
Revenue model
How will you earn money?
Market opportunity What marketspace do you intent to serve, and what is its size?
Competitive environment
Competitive advantage
Who else occupies your intended marketspace?

What special advantages does your firm bring to the marketspace?
Market strategy
How do you plan to promote your products to attract customer?
Organizational
development
What types of organizational structures within the firm are

necessary to carry out the business plan?
Management team
What kinds of experiences and background are important for

the companys leaders to have?
RE
LA
TIO
Raw material
producer
NB
ET
WE
manufacturer
EN
distributor
B2
BA
ND
B2
C
B2
B
retailer
B2
C
consumer
Introduction to B2C Ecommerce

B2C refers to a business communicating with or selling to an
individual rather than a company
B2C
Customer
Business/organization
As the name suggests, it is the model involving business and consumers. In
this model, online business sell to individual customers. Business to
customer covers those e-commerce websites and transactions trough which
organization sell goods to customer over the internet. B2C is also known as
internet retailing or E-trailing.
Introduction to B2C E-commerce

(Cont)
This category has expanded greatly in the late 1990s with the
growth of public access to the Internet.

The business-to-consumer category includes electronic
shopping, information searching (e.g. railway timetables) but

also interactive games delivered over the Internet.
Popular items sold using B2C model are airline tickets,
books, computers, videotapes, music CDs,toys ,music, health

and beauty products, jewellery etc..
B2C e-commerce
transactions
VISA
Order placed
by user
Shopping cart
Order
form
Shipping carrier picks up

shipment
credit card is
charged
Order is
competed
Sent to warehouse
E-mail is sent to customer to merchant
Consumer Shopping Procedure

on the Internet
1. Basic requirement determination.
2. Search for available items that can meet the
requirement.
3. Compare the candidate items with multiple
perspectives
4. Place an Order.
5. Pay the Bill.
6. Receive the delivered items and inspect them.
7. Contact the vendor to get after-service and support,
or to return if disappointed.
Business
Model
Variation
Example
Description
Portals are gateways to the

Internet Offers powerful Web
searching tools-effiency and ease
Portal
Overview
The portal business model is in

addition to serving as a gateway
to the Internet;
It is a destination site
provide an integrated
package of content and
services all in one place
B2C Business Models:

An integrated package of content like
Portal
News
weather forecasts
currency rates
stock quotes
phone and map information
Services like
Entertainment
Chat
Game
Downloads
Shopping-auction
E-card
Sms service
search
Business
Model
Portal
Variation
Example
Description
Horizontal/
General
Yahoo.com
msn.com
Offers an integrated package of

services and content such as
search,e-mail,chat etc.
Seeks to be a users home base.
Vertical/
Specialized
iBoats.com
Offers services and products to

specialized marketplace.
A gateway or portal to
information related to a
particular industry, such as
human resources, health care,
insurance, automobiles, or food
manufacturing.
Vortals are also seen as likely
business-to-business
communities
Business
Model
Variation
Example
Description
Virtual
merchant
Amazon.com,
ebooks.com
Online version of retail store

where customers can shop
24/7 with comfort.
Click and
mortar
Walmart.com,
bestbuy.com
Online distributor channel for

company that also has
physical stores.
Catalog
merchant
LandsEnd.com
,
llbean.com
Online version of direct

catalog. The catalog
merchant has generally lower
prices than other retailers
and lower overhead expenses
due to the smaller size of
store and lack of large
showroom space.
Online mall
Fashionmall.co Online version of mall.

m
internetmall.c
om
E-tailer/
Storefront
Business
Model
Variation
Example
Description
Information and
entertainment providers like
newspapers, sports sites or
other online sources offering
up-to-date information
(news, special interest ,
photos, video, artwork etc)
to customers.
Content
Provider
Sportsline.com
,
Infomediaries:
electronic intermediaries
CNN.com,
that control information
deviantart.com
flow in cyberspace,
often aggregating
information and selling
it to others
They do not own but
aggregate and distribute the
content produced by others
Business
Model
Variation
Example
xDrive.com,
Whatsitworth
toyou.com
SERVICE
PROVIDE
R
Description
Companies that make
money by selling users a
service, rather than a
product.
Offers services online, like
consultancy, trade
knowledge, expertise etc.
Eg. Window updates
offered by microsoft
Business
Model
Transactio
n broker
Variatio
n
Example
ETrade.com,
Monster.co
m
Description
Processors of online sales
transactions, such as stock brokers
and travel agents that increase
customer `s productivity by helping
them do things faster.
It assists buyers, sellers, or both
during transaction and acts as an
agent for larger markets.
Furthermore, they sell others
products rather than their own
product.
Transaction brokers receive
commissions for every transaction
that had been successfully concluded
in order to sustain their business.
One legal advantage to sellers is that
the seller is usually not legally
responsible for the actions of
transaction brokers acting within the
Business
Model
Communit
y Provider
Varia
tion
Example
About.com,
iVillage.com
Description
Sites where individuals with
particular interests, hobbies and
common experience can come
together and compare.
Communities utilize electronic
tools such as forums, chat
rooms, e-mail lists, message
boards, and other interactive
Internet mechanisms, which are
usually tailored to the particular
community.
Broadly, the community model comes in two basic varieties :Centered on relationships.
It revolve around shared interests, ideas, topics, and goals. In
these communities, the development of relationships is the
primary goal.
Community provider Model (cont..)

To maximize member involvement, community sites must offer
maximum degrees of interactivity and personalization.
For example, GeoCities offers space and tools for members to
set up their own Web sites and establish virtual communities
within the broader GeoCities community.
Centered on tasks
Task-centered communities generally are more structured and
impersonal.
The relationships established or augmented online are a means
to a mutual end, such as enhanced profits.
More specifically, Web communities are established between
business partners, between businesses and their customers,
between different groups of customers, within companies, and
between individuals and groups devoted to particular topics.
Business
Model
MARKET
CREATOR
Variation
Auctions and
other forms of
Dynamic Pricing
Example
Description
eBay.com,
Priceline.co
m,
upperbid.co
m
Web-based businesses
that use internet
technology to create
markets that bring
buyers and sellers
together.
The success factor
is:
->Attracting sufficient
critical number of
sellers and buyers to
the marketplace.
->Speed, ability to
become operational
quickly
Auction and dynamic

pricing models
English
Auctions
The bidders announce their bids until no

higher bid is forthcoming
going . . . going . . . gone!
Ascending-price auctions
Typically set a closing time in advance
Minimum bid plus a reserve price
Dutch Auctions
Bidding starts at a high price and drops until a
bidder accepts the price

Descending price auctions
English Auction, Ascending

Price
Sealed-Bid Auctions
Bidders submit their bids independently and are usually
prohibited from sharing information with each other

First-price sealed-bid auction
The winner pays his amount
Second-price sealed-bid auction

The winner pays one increment over the second-highest
bid received.
Double Auctions
Buyers and sellers submit bids to an
auctioneer
The auctioneer matches the sellers offers to
the buyers offer
E.g. New York Stock Exchange
Demand-Sensitive Pricing Model

Group purchasing
Individual buyers to shop in large groups to
obtain group discount
The more people who buy a product in a single

purchase, the lower the cost per person becomes
Mercata.com, mobshop.com, demandline.com
Comparison-Pricing Model
Allows customers to poll a variety of merchants
and find a desired product/service at the lowest

price
Mysimon.com
Uses intelligent-agent technology
Offers discussion groups, customer ratings, and
comparison shopping
Capabilities and functionalities of

B2C Model
With the conduction of business on the internet ,the role and
importance of electronic markets has been increasing. It lets
increase the efficiency of business performance .
Some of the capabilities which an electronic marketplace has,

which speak of their potential are1. Instantaneous communication
It helps in quick communication between the various
participants of business systems. It also helps to reduce
Time to Market.
2. Global Access
the products and services offered through the electronic
markets have global reach and give access to larger and
new markets.
3. Customization
Electronic markets allows to customize or configure goods

according to users need .
4. Increased Availability
Since e-commerce provide access to companys site 24/7 so
there is much greater availability of products.
5. De-intermediation
It helps in elimination the middleman, offering simplified
electronic distribution and product differentiation based on
customer choice.
6. Collaboration
They facilitate automation of transactions between
electronic enterprises and support real time exchange of
information and thus enable collaborative processing.
Thanks

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By:Shyna

A set of planned activities designed to result

E-commerce business model

A business model that aims to use and leverage the

It includes the roles and relationships among a firm's

Eight Key Ingredients of a Business

Who else occupies your intended marketspace?

How do you plan to promote your products to attract customer?

What types of organizational structures within the firm are

What kinds of experiences and background are important for

Introduction to B2C Ecommerce

Introduction to B2C E-commerce

growth of public access to the Internet.

shopping, information searching (e.g. railway timetables) but

books, computers, videotapes, music CDs,toys ,music, health

Shipping carrier picks up

Consumer Shopping Procedure

Portals are gateways to the

The portal business model is in

B2C Business Models:

Offers an integrated package of

Offers services and products to

Online version of retail store

Online distributor channel for

Online version of direct

Fashionmall.co Online version of mall.

Community provider Model (cont..)

Auction and dynamic

The bidders announce their bids until no

Minimum bid plus a reserve price

Bidding starts at a high price and drops until a

bidder accepts the price

English Auction, Ascending

prohibited from sharing information with each other

Second-price sealed-bid auction

Demand-Sensitive Pricing Model

obtain group discount

The more people who buy a product in a single

Mercata.com, mobshop.com, demandline.com

and find a desired product/service at the lowest

Capabilities and functionalities of

Some of the capabilities which an electronic marketplace has,

Electronic markets allows to customize or configure goods

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