Lesson 2 Flashcards
a set of planned activities designed to result in a profit in a marketplace.
Business model
is a document that describes a firm’s business model.
Business plan
a business model that aims to use and
leverage the unique qualities of the Internet and the World Wide Web.
e-commerce business model
The Eight (8) Key elements of a Business models:
- Value Proposition
- Revenue Model
- Market Opportunity
- Competitive Environment
- Competitive Advantage
- Market Strategy
- Organizational Development
- Management team
defines how a company’s product or service fulfills the needs of customers.
Value Proposition
describes how the firm will earn revenue, produce profits, and produce a superior return on invested capital.
Revenue Model
a company offers its users content or
services and charges a subscription fee for access to some or all of its offerings.
Subscription Revenue Model
a company receives a fee for
enabling or executing a transaction.
Transaction fee Revenue Model
a company derives revenue by selling goods, information, or services.
Sales Revenue Model
a company steers business to an affiliate and receives a referral fee or percentage of the revenue from any resulting sales.
Affiliate Revenue Model
Types of Revenue Model (4) :
- Subscription Revenue Model
- Transaction Fee Revenue Model
- Sales Revenue Model
- Affiliate Revenue Model
refers to the company’s intended marketspace and the overall potential financial opportunities available to the firm in that marketspace.
Market opportunity
the area of actual or potential commercial value in which a company intends to operate
Marketspace
refers to the other companies operating in the same marketspace selling similar products.
Competitive Environment
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.
Competitive Advantage
the plan you put together that details exactly how you intend to enter a new market and attract new customers.
Market Strategy
describes how the company will organize the work that needs.
Organizational Development
employees of the company responsible for making the business model work.
Management Team
Major Business-to-Consumer(B2C)Business Models (7):
- E-Tailer
- Community Provider
- Content Provider
- Portal
- Transaction Broker
- Market Creator
- Service Provider
online retail store.
E-Tailer
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.
Community Provider
distributes information content, such as digital news, music, photos, video, and artwork.
Content Provider
offers users powerful search tools as well as an integrated package of content and services all in one place.
Portal
site that processes transactions for consumers that are normally handled in person, by phone, or by mail.
Transaction Broker
builds a digital environment where buyers and sellers can meet, display products, search for products, and establish a price for products.
Market Creator
offers services online.
Service Provider
Major Business-to-Business(B2B) Business Models (4)
- E-distributor
- E-procurement
- Exchange
- Industry Consortium
a company that supplies products and services directly to individual businesses.
E-distributor
firm creates and sells access to digital electronic markets.
E-procurement
an independent digital electronic marketplace where suppliers and commercial purchasers can conduct transactions.
Exchange
owned vertical marketplaces that serve specific industries.
Industry Consortium
digital network designed to coordinate
the flow of communications among firms engaged in business together.
Private Industrial Network
refers to the nature of the players in an industry and their relative bargaining power.
Industry Structure
the set of activities performed in an
industry or in a firm that transforms raw inputs into final products and services.
Industry Value Chain
the set of activities a firm engages in to create final products from raw inputs.
Firm Value Chain
the set of activities performed within an
individual firm to create final products from raw inputs by increasing operational efficiency.
Firm Value Webs
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.
Business Strategy
