A Business model is a company’s plan for how it will generate revenues and make a profit. It explains what products or services the business plans to manufacture and market, and how it plan to don so, including what expenses it will incur. (Source: Investopedia).
There are three type of E-business models:
- Business-To-Business (B2B).
- Business-To-Consumer (B2C).
The Concept of E-commerce:
E-commerce or Electronic commerce is a system for the buying and selling of goods and services using the internet as the main means of exchanges. (Source: Doofiner).
Strategic Business Objectives:
Improvement of efficiency to attain higher Profitability.
Information systems, Technology an important tool in achieving greater efficiency and Productivity.
Walmart’s Retail Link system links suppliers to stores for the superior replenishment.
New Products, Services and Business Models:
Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS, and Netflix.
Customer and Supplier intimacy:
- Serving Customers Well leads to customers returning, which raises revenues and Profits.
- Example: High-end Hotels (for e.g Mandarin Oriental hotel Group) that use computers to truck customer.
- Preferences and use to monitor and customize environment.
Things to Remember:
- Failure (sometimes)leads to Success.
- Vast selection.
- Customer Service.
- Competitive Prices.
- Physical Establishment.
- Loyal Customer Base.
- Self Innovation.
- Continuous growth & Expansion.