Chapter 14 : Ebusiness

EBUSINESS MODELS

- An ebusiness model is a plan that details how a company creates, delivers, and generates revenues.

- Ebusiness models fall into one of four categories which is :

Business-to-Business (B2B)

- Applies to businesses buying from and selling to each other over the internet.

- Electronic marketplace (e-marketplace) are interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities

Business-to-Consumer (B2C)

- Applies to any business that sells its products or services directly to consumers online

- Common B2C e-business models include:

• e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office
• e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops

- Business types:

• Brick-and-mortar business
• Pure-play business
• Click-and-mortar business

Consumer-to-Business (C2B)

- Applies to any consumer who sells a product or service to a business on the internet

-   Priceline.com is an example of a C2B e-business model

-   The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices

Consumer to consumer (C2C)

-  Applies to consumers offering goods and services to each other on the internet.

- C2C communities include:

• Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
• Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
• Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

Ebusiness Tools for Connecting and Communicating

•  Email
• Instant messaging
• Podcasting
• Videoconferencing
•  Web conferencing
• Content management systems

The Challenges of Ebusiness

•   Identifying limited market segments
•   Managing consumer trust
•  Ensuring consumer protection
• Adhering to taxation rules