Business models emerging in e commerce area

1. Business Models emerging in e-commerce area

2. Business Models emerging in e-commerce area Consumer-to-consumer (C2C) eBay, Half.com, Craigslist.com Helps consumers connect with other consumers to conduct business (or make trades) Peer-to-peer (P2P) The Pirate Bay, Cloud mark Technology enabling consumers to share files and services via the Web, without a common server Mobile commerce (m-commerce) eBay Mobile, PayPay Mobile Extending business applications using wireless technology

3. E-Commerce Enablers Firms whose business model is focused on providing the infrastructure necessary for e-commerce companies to exist, grow, and prosper E-commerce enablers include firms that provide: Hardware: Web servers Software: operating systems and server software Networking: routers Security: encryption software E-commerce software systems Streaming and rich media solutions Customer relationship management software Payment systems Performance enhancement Databases Hosting services

4. How the Internet and the Web Change Business: Strategy, Structure, and Process In general, the Internet is an open standards system available to all players , and this fact inherently makes it easy for new competitors to enter the marketplace and offer substitute products or channels of delivery E-commerce has an impact on industry structure in a wide range of product, service, and content industries Table 2.7 suggests some of the implications of each unique feature for the overall business environment – industry structure, business strategies, and operations

5. How the Internet and the Web Change Business: Strategy, Structure, and Process E-commerce changes industry structure, in some industries more than others Industry structure refers to the nature of the players in an industry and their relative bargaining power The level of industry competition is altered through changes in five forces : Barriers to entry Bargaining power of buyers Bargaining power of suppliers Threat of substitute products or services Rivalry among existing competitors A comprehensive description of how the Internet impacts industry structure is shown in Figure 2.4

6. B2C Business Models (Table 2.3) Portal Yahoo, AOL, MSN, Google, Bing, Ask.com E- tailer Virtual merchant, bricks-and-clicks, catalog merchant, manufacturer-direct Content provider WSJ.com, CNN.com, ESPN.com Transaction broker E*Trade, Expedia, Monster, Travelocity, Hotels.com Market creator eBay, Priceline Service provider Community provider Facebook , MySpace, Twitter, iVillage

7. Business Models in Emerging E-Commerce Areas (Table 2.5) Consumer-to-consumer (C2C) eBay, Half.com, Craigslist.com Helps consumers connect with other consumers to conduct business (or make trades) Peer-to-peer (P2P) The Pirate Bay, Cloudmark Technology enabling consumers to share files and services via the Web, without a common server Mobile commerce (m-commerce) eBay Mobile, PayPay Mobile Extending business applications using wireless technology

8. Impact of the Unique E-Commerce Technology Features on the Business Environment (Table 2.7) Feature Example Impact on Business Environment Ubiquity Creates new marketing channels Enables new differentiation strategies Global reach Lowers barriers to entry Greatly expands market at the same time Lowers global operational costs Enables competition on a global scale Universal standards Lowers barriers to entry and intensifies competition Reduces computing and communications costs Richness Reduces strength of powerful distribution channels May reduce reliance on sales forces Enhances post-sale support strategies

9. Impact of the Unique E-Commerce Technology Features on the Business Environment (Table 2.7) Feature Example Impact on Business Environment Interactivity Reduces threat of substitutes through enhanced customization Reduces reliance on sales forces Enables Web-based differentiation strategies Personalization/customization Reduces threat of substitutes Raises barriers to entry Enables personalized marketing strategies Enables mass customization strategies Information density Weakens powerful sales channels, shifts power to consumers Reduces costs for obtaining, processing, and distributing information Social network technologies Shifts programming and editorial decisions to consumers Creates substitute entertainment products Energizes a large group of new suppliers