Strategy & Business Models

Question 1

E-Tailer / Online Retailer (Virtual merchant)

Answer 1

A retailer that allows customers to shop via digital mediums (phone/computer)

eg: Amazon

Question 2

E-Tailer / Online Retailer (Omnichannel)

Answer 2

A retailer that has physical stores but allows customers to shop via digital mediums

eg: Walmart

Question 3

E-Tailer / Online Retailer (Manufacturer Direct)

Answer 3

Manufacturer uses online channels to sell directly to consumers

eg: Dell

Question 4

Community Provider

Answer 4

Sites and apps that allow people to communicate and connect online

eg: Instagram

Question 5

Content Provider (Traditional)

Answer 5

Offers customers forms of online content

eg: Netflix

Question 6

Content Provider (Creator)

Answer 6

Offers users original forms of online content, usually posted on platforms such as TikTok, Youtube, etc

eg: PewDiePie, Forrest Auto

Question 7

Portal (Horizontal)

Answer 7

Offers an integrated package of content, search, and social network services

eg: MSN

Question 8

Portal / Vortal (Vertical)

Answer 8

Offers an integrated package of content, but focuses on a specific subject matter or market segment

eg: SailNet

Question 9

Portal (Search engine)

Answer 9

Focuses primarily on offering search services, but also offers additional content

eg: Google

Question 10

Transaction Broker

Answer 10

Processors of online transactions, such as stockbrokers and travel agents, that increase customer productivity

eg: Expedia

Question 11

Market Creator

Answer 11

Businesses that use digital platforms to create marketplaces and tie buyers and sellers together

eg: eBay

Question 12

Service Provider

Answer 12

Companies that make money by selling users a service rather than a product

eg: Maple Health

Question 13

Revenue Models

Answer 13

Different ways B2C business models can make money

Question 14

Business model

Answer 14

Set of planned activities designed to result in a profit in the marketplace

Question 15

Business plan

Answer 15

Describes a firm’s business model

Question 16

E-commerce business model

Answer 16

Uses/leverages unique qualities of internet and web

Question 17

8 business model components

Answer 17

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

Question 18

Value proposition

Answer 18

Why should the customer buy from you?

(Personalization, reduction of product search, price discovery costs, facilitation of transactions by managing product delivery)

Question 19

5 primary revenue models

Answer 19

Advertising
Subscription
Transaction fee
Sales
Affiliate

Question 20

The 7 types of B2C models

Answer 20

E-Tailer
Community provider
Content provider
Portal
Transaction broker
Market creator
Service provider

Question 21

Value chain and e-commerce

Answer 21

Suppliers > manufacturers > distributors > retailers > customers

With e-commerce, transporters replace middle steps by directly selling to customers

Question 22

Seed capital

Answer 22

Capital required to get a business off the ground