Identify the key components of e-commerce business models.

A successful business model effectively addresses eight key elements: Value proposition - how a company's product or service fulfills the needs of customers. Typical e-commerce value propositions include personalization customization convenience and reduction of product search and price delivery costs. !evenue model -- how the company plans to make money from its operations. "a#or ecommerce revenue models include the advertising model subscription model transaction fee model sales model and affiliate model. "arket opportunity -- the revenue potential within a company's intended marketspace. $ompetitive environment-the direct and indirect competitors doing business in the same marketspace including how many there are and how profitable they are. $ompetitive advantage - the factors that differentiate the business from its competition enabling it to provide a superior product at a lower cost. "arket strategy -- the plan a company develops that outlines how it will enter a market and attract customers. %rganizational development - the process of defining all the functions within a business and the skills necessary to perform each #ob as well as the process of recruiting and hiring strong employees. "anagement team - the group of individuals retained to guide the company's growth and e&pansion. Describe the major B2C business models. Describe the major B2B business models. Recognize business models in other emerging areas of e-commerce. nderstand key business concepts and strategies applicable to e-commerce.

!uestions
' + , . 0 1 6 : ; ' = (hat is a business models) *ow does it differ from a business plan) (hat are the eight key components of an effective business model) (hat are Amazon.com-s primary customer value propositions /escribe the five primary revenue models used by e-commerce firms. (hy is targeting a market niche generally smarter for a community provider than targeting a large market segment) 2esides music what other forms of information could be shared through peer-to-peer sites such as 3apster and "4, using shareware such as 5nutella) (ould you say that Amazon.com and *alf. com are direct or indirect competitors) 78ou may have to visit the (eb sites to answer.9 (hat are some of the specific ways that a company can obtain a competitive advantage) 2esides advertising and product sampling which 8ahoo and A%< have used almost e&clusively as their marketing strategy what are some other market strategies) (hat elements of >ozmo's business model may have been faulty)

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(hy is it difficult to categorize e-commerce business models) 2esides the e&amples given in the chapter what are some other e&amples of vertical and horizontal portals in e&istence today) (hat are the ma#or differences between virtual storefronts such as marthastewart.com and clicks and bricks operations such as walmart.com) (hat are the advantages and disadvantages of each) 2esides news and articles what other forms of information or content do content providers offer) (hat is a reverse auction) (hat company is an e&ample of this type of business) (hat are the key success factors for 2+2 hubs) *ow are they different from portals) (hat is an application service provider) (hat are some business models seen in the consumer-to-consumer and peer-to-peer ecommerce areas) *ow have the uni?ue features of e-commerce technology changed industry structure) (ho are the ma#or players in an industry value chain and how are they impacted by ecommerce technology) (hat are four generic business strategies for achieving a profitable business)

"rojects
'. @elect an e-commerce company. Visit its (eb site and describe its business model based on the information you find there. Adentify its customer value proposition its revenue model the marketspace it operates in who its main competitors are any comparative advantages you believe the company possesses and what its market strategy appears to be. Also try to locate information about the company's management team and organizational structure 7check for a page labeled 'the $ompany ' 'About Bs ' or something similar9. +. C&amine the e&perience of shopping on the (eb versus shopping in a traditional environment. Amagine that you have decided to purchase a digital camera 7or any other item of your choosing9. Dirst shop for the camera in a traditional manner. /escribe how you would do so 7for e&ample how you would gather the necessary information you would need to choose a particular item what stores you would visit how long it would take prices etc.9. 3e&t shop for the item on the (eb. $ompare and contrast your e&periences. (hat were the advantages and disadvantages of each) (hich did you prefer and why) ,. Visit the e2ay.com (eb site and look at the many types of auctions available. Af you were considering establishing a rival specialized online auction business what are the top three market opportunities you would pursue based on the goods and auction community in evidence at e2ay) 4repare a slide presentation to support your analysis and approach. .. /uring the C-commerce A era first mover advantage was touted as one way to success. %n the other hand some suggest that being a market follower can yield rewards as well. (hich approach has proven to be more successful - first mover or follower) $hoose two e-commerce

companies that prove your point and prepare a brief presentation to e&plain your analysis and position. 0. 4repare a ,- to 0 page research report on the current and potential future impacts of e-commerce technology on the publishing industry.