Lesson 2

Question 1

a set of planned activities designed to result in a profit in a marketplace.

Answer 1

Business model

Question 2

is a document that describes a firm’s business model.

Answer 2

Business plan

Question 3

a business model that aims to use and
leverage the unique qualities of the Internet and the World Wide Web.

Answer 3

e-commerce business model

Question 4

The Eight (8) Key elements of a Business models:

Answer 4

1. Value Proposition
2. Revenue Model
3. Market Opportunity
4. Competitive Environment
5. Competitive Advantage
6. Market Strategy
7. Organizational Development
8. Management team

Question 5

defines how a company’s product or service fulfills the needs of customers.

Answer 5

Value Proposition

Question 6

describes how the firm will earn revenue, produce profits, and produce a superior return on invested capital.

Answer 6

Revenue Model

Question 7

a company offers its users content or
services and charges a subscription fee for access to some or all of its offerings.

Answer 7

Subscription Revenue Model

Question 8

a company receives a fee for
enabling or executing a transaction.

Answer 8

Transaction fee Revenue Model

Question 9

a company derives revenue by selling goods, information, or services.

Answer 9

Sales Revenue Model

Question 10

a company steers business to an affiliate and receives a referral fee or percentage of the revenue from any resulting sales.

Answer 10

Affiliate Revenue Model

Question 11

Types of Revenue Model (4) :

Answer 11

1. Subscription Revenue Model
2. Transaction Fee Revenue Model
3. Sales Revenue Model
4. Affiliate Revenue Model

Question 12

refers to the company’s intended marketspace and the overall potential financial opportunities available to the firm in that marketspace.

Answer 12

Market opportunity

Question 13

the area of actual or potential commercial value in which a company intends to operate

Answer 13

Marketspace

Question 14

refers to the other companies operating in the same marketspace selling similar products.

Answer 14

Competitive Environment

Question 15

achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most, or all, of its competitors.

Answer 15

Competitive Advantage

Question 16

the plan you put together that details exactly how you intend to enter a new market and attract new customers.

Answer 16

Market Strategy

Question 17

describes how the company will organize the work that needs.

Answer 17

Organizational Development

Question 18

employees of the company responsible for making the business model work.

Answer 18

Management Team

Question 19

Major Business-to-Consumer(B2C)Business Models (7):

Answer 19

1. E-Tailer
2. Community Provider
3. Content Provider
4. Portal
5. Transaction Broker
6. Market Creator
7. Service Provider

Question 20

online retail store.

Answer 20

E-Tailer

Question 21

creates an online environment where people with similar interests can transact (buy and sell goods); share interests, photos, and videos; communicate with like minded people; and receive interest-related information.

Answer 21

Community Provider

Question 22

distributes information content, such as digital news, music, photos, video, and artwork.

Answer 22

Content Provider

Question 23

offers users powerful search tools as well as an integrated package of content and services all in one place.

Answer 23

Portal

Question 24

site that processes transactions for consumers that are normally handled in person, by phone, or by mail.

Answer 24

Transaction Broker

Question 25

**builds** a **digital environment where buyers and sellers can meet**, display products, search for products, and establish a price for products.

Answer 25

**Market Creator**

Question 26

**offers services** online.

Answer 26

**Service Provider**

Question 27

Major Business-to-Business(B2B) Business Models (**4**)

Answer 27

1. E-distributor 2. E-procurement 3. Exchange 4. Industry Consortium

Question 28

a company that **supplies products** and services directly **to individual businesses**.

Answer 28

**E-distributor**

Question 29

firm creates and **sells access to digital electronic markets**.

Answer 29

**E-procurement**

Question 30

an **independent digital electronic marketplace** where suppliers and commercial purchasers can conduct transactions.

Answer 30

**Exchange**

Question 31

owned vertical marketplaces that **serve specific industries**.

Answer 31

**Industry Consortium**

Question 32

**digital network** designed to coordinate the flow of **communications** among firms engaged in **business together.**

Answer 32

**Private Industrial Network**

Question 33

refers to the **nature of the players** in an industry and their relative **bargaining power**.

Answer 33

**Industry Structure**

Question 34

the set of activities **performed in an industry** or in a firm that **transforms raw inputs into final products** and services.

Answer 34

**Industry Value Chain**

Question 35

the set of activities a **firm engages** in to create final products from raw inputs.

Answer 35

**Firm Value Chain**

Question 36

the set of activities performed within an **individual firm** to create final products from raw inputs by **increasing operational efficiency**.

Answer 36

**Firm Value Webs**

Question 37

a set of **plans for achieving superior long-term returns** on the capital invested in a firm by **offering unique ways** to differentiate products, obtain cost advantages, compete globally, or compete in a narrow market or product segment.

Answer 37

**Business Strategy**