Strategy & Business Models Flashcards
E-Tailer / Online Retailer (Virtual merchant)
A retailer that allows customers to shop via digital mediums (phone/computer)
eg: Amazon
E-Tailer / Online Retailer (Omnichannel)
A retailer that has physical stores but allows customers to shop via digital mediums
eg: Walmart
E-Tailer / Online Retailer (Manufacturer Direct)
Manufacturer uses online channels to sell directly to consumers
eg: Dell
Community Provider
Sites and apps that allow people to communicate and connect online
eg: Instagram
Content Provider (Traditional)
Offers customers forms of online content
eg: Netflix
Content Provider (Creator)
Offers users original forms of online content, usually posted on platforms such as TikTok, Youtube, etc
eg: PewDiePie, Forrest Auto
Portal (Horizontal)
Offers an integrated package of content, search, and social network services
eg: MSN
Portal / Vortal (Vertical)
Offers an integrated package of content, but focuses on a specific subject matter or market segment
eg: SailNet
Portal (Search engine)
Focuses primarily on offering search services, but also offers additional content
eg: Google
Transaction Broker
Processors of online transactions, such as stockbrokers and travel agents, that increase customer productivity
eg: Expedia
Market Creator
Businesses that use digital platforms to create marketplaces and tie buyers and sellers together
eg: eBay
Service Provider
Companies that make money by selling users a service rather than a product
eg: Maple Health
Revenue Models
Different ways B2C business models can make money
Business model
Set of planned activities designed to result in a profit in the marketplace
Business plan
Describes a firm’s business model
E-commerce business model
Uses/leverages unique qualities of internet and web
8 business model components
Market opportunity
Market strategy
Value proposition
Revenue model
Competitive advantage
Competitive environment
Management team
Organizational development
*for this course we are focusing on value proposition and revenue model
Value proposition
Why should the customer buy from you?
(Personalization, reduction of product search, price discovery costs, facilitation of transactions by managing product delivery)
5 primary revenue models
Advertising
Subscription
Transaction fee
Sales
Affiliate
The 7 types of B2C models
E-Tailer
Community provider
Content provider
Portal
Transaction broker
Market creator
Service provider
Value chain and e-commerce
Suppliers > manufacturers > distributors > retailers > customers
With e-commerce, transporters replace middle steps by directly selling to customers
Seed capital
Capital required to get a business off the ground
