Business model

Notes

1. Business Model

2. Business Model  A business model is the way that a company sells products to its customers. It describes how a business creates , delivers, and captures value . Different types of Business Model: Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Business-to-Government (B2G) Consumer-to-Business (C2B)

3. Evolution Of Internet Business Models E-Business established themselves in 2 phases: The first phase comprised the following trends: Business organizations rushed to establish an e-commerce website. Little or no regard was given to check how reliable the site needed to be. It was a matter of beating competition. Drawback: There was no or little integration with the production side of the business . Reasons: Growth of consumer base , Request for real-time order status and Return of products .

4. In the Second phase , organizations started planning about integrating the back-end and real time transaction processing . Business are using Internet Technologies and integrating their systems and processes more efficiently are now breaking the barrier . This has been possible due to :Capitalizing on a continuous business proposal and correctly applying technology .

5. Business-to-Business Model This model needs two or more business organizations that do business with each other . It entails commercial activity among companies , through the Internet as a medium. Types of B2B : Supplier Oriented Buyer Oriented Intermediate Oriented For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single B2C transaction.

6. Business To Consumer (B To C) Business or transactions conducted directly between a company and consumers who are the end-users of its products or services. This model enables consumers to browse , select and merchandise online from wider variety of sellers and at better prices .

7. Consumer-to-Consumer (C2C) Consumer to Consumer  (or  citizen-to-citizen )  electronic commerce  involves the electronically facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it.

8. Business-to-Government An example of a business to government company is a firm that offers IT consulting services to a government agency. The government uses the B2G arrangement in order to keep its technology up to date and in working condition, while at the same time limiting expenses by not taking on full-time staff.

9. Consumer-to-Business (C2B) Consumer-to-business  ( C2B ) is a business model in which consumers (individuals) create value and businesses consume that value. For example, when a consumer writes reviews or when a consumer gives a useful idea for new product development then that consumer is creating value for the business if the business adopts the input.

10. Business Model :6 Components Value Proposition Market Segment Value Chain Structure Creation of revenue and profits Place in the value network Competitive Strategy

11. Role of A Business Model

12. Revenue model versus business model A revenue model is part of a business model. A business model shows the framework for an entire business and allows investors and bankers as well as the entrepreneurs themselves to have a quick way of evaluating that business.  The revenue model is a key component of the business model  as it is an essential factor for delivering products or services with high margins and funding the business