„ A set of planned activities designed to result in

profit in a marketplace.

„ A Business Plan is a document that describes the

firm͛s business model.
 m   

„ Jalue Proposition

- Why should the customer buy from you?

„ Revenue Model

- How will you earn money ?

„ Market Opportunity

- What marketspace do you intend to serve and

what is its size?
„ pompetitive environment

- Who else occupies your intended marketspace?

„ pompetitive advantage

- What special advantages does your firm bring to

the marketspace?

„ Market Strategy

- How do you plan to promote your products or

services to attract your target audience?
„ Organizational Development

- What types of organizational structures within

the firm are necessary to carry out the business
plan?

„ Management Team

- What kinds of experiences and backgrounds are

important for the company͛s leaders to have?
 J   

„ Means how a product or service fulfills the needs

of the customers. How will you stand apart?

„ For e-business : personalization, pustomization,

product offerings, reduction of search costs,
reduction of price discovery, facilitation of
transactions.

„ E.g Freshdirect, Amazon

  J  

„ Describes how the firm will earn revenue,

generate profits and produce a superior return
on invested capital.

„ Major revenue model :

- Advertising Revenue Model :A website that offers

its users content, services or products a forum
for advertisements and receives services from
advertisers. E.g Yahoo derives benefits from
search engine and other forms of online
advertising.
„ Subscription Revenue Model : Offers its users
content or services, charges a subscription fee for
access to some or all of its offerings. E.g Online
Journals

„ Transaction Fee Revenue Model : pompany

receives a fee for enabling or executing a
transaction. E.g. E-Bay

„ Sales Revenue model : pompanies derive

revenue by selling goods, information, or services
to customers. E.g. Amazon
„ Affiliate Revenue Model : Sites that bring
business to an affiliate receive a referral fee or
percentage of the revenue from any resulting
sales. E.g Mypoints
  m  

„ Refers to marketspace( i.e an area of actual or

potential commercial value) and the overall
potential financial opportunities available to the
firm in that marketspace.

„ It is usually divided into smaller niche markets.

   J  J

„ Refers to other companies selling similar

products and operating in the same
marketspace.

„ Refers to the porters diamond.

„ Also includes how many competitors are active,

how large is their operations, what is the
marketshare, how profitable they are and how
they price the products.
   J J 


„ When they can produce a superior product or

give the product at a lower price.

„ Asymmetry exists whenever one participant in a

market has more resources than other
participants.

„ First mover advantage : for a firm that is the first

in the marketplace

„ Unfair competitive advantage : A firm develops

advantage based on a factor that other firm
cannot buy.
  m   


„ The plan you make to enter a new market and

attract customers
  
 
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„ Describes how the company will organize the

work that needs to be done.

„ It includes identifying the functional areas, jobs

and then the recruitment begins
 
  


   

„ Portal : Yahoo, MSN

- Provide powerful search tools as well as an

integrated package of content and services all at
one place.

- Generate revenue by charging advertisers for ad-

placement, collecting referral fees for bringing
customers to other sites and charging for
premium services
„ E-Tailer e.g .Amazon

- Online retail stores.

- Similar to typical bricks and mortar store.

- They can be virtual merchant(amazon), bricks &

clicks(walmart) , catalog merchant(LLBean) or
manufacturer direct(dell)
„ pontent Provider

- Distribute information content like digital video,

music, photos, text and artwork.

- Make money by charging a subscription fee.

„ Transaction Broker

- Process transactions for consumers

- Financial services, travel services and job

placement companies.

- Jalue propositions are time and money saving.

„ Market preator

- Build a digital environment in which buyers and

sellers can meet, display products, search for
products and establish prices
„ Service Provider : Google Maps, Google Docs &
Spreadsheets etc.

- Offer services online e.g photo sharing, video

sharing

- Some charge a fee or monthly subscription while

others generate through advertising.
„ pommunity Provider e.g. Facebook, MySpace

- Sites that create a place where people with

similar interest can transact, share and
communicate.



   

„ E-Distributor

- pompanies that supply products and services

directly to individual businesses

- owned by one company

„ E-Procurement

- preates and sells access to digital electronic

markets. pompanies like Ariba provide software
to effectively manage the supply chain on both
the sell side and the buy side.
„ Exchanges

- §

  digital electronic place where

suppliers and commercial purchasers can
conduct transactions.
„ Industry ponsortia

- §

 
markets open to select suppliers
„ Private industrial network : Single Firm

- pompany owned network to coordinate supply

chains with a limited set of partners. E.g.
Walmart, P& G
„ Industry Wide

- Industry owned

- poordinate supply and logistics for the industry.

  

  

„ p p

- E.g ebay

„ P P

„ M-pommerce