E-C chapter 2 part 1

Uses/leverages unique qualities of Internet and Web

How do you plan to promote your products or services to attract your target audience

Describes a firm's business model

"Who else occupies your intended marketspace?"

Set of planned activities designed to result in a profit in a marketplace

Other companies selling similar products in the same marketspace Includes both direct and indirect competitors

Typically, divided into functional departments

Asymmetries :one participant in a market has more resources than other participants

Area of actual or potential commercial value in which company intends to operate

Affiliate revenue models Example :

Is your product superior to or cheaper to produce than your competitors'?

Advertising revenue models Example :

complementary resources (such as marketing, management and financial assets)

Why should the customer buy from you?"

Competitive Environment Influenced by

Has market-specific knowledge

Perfect markets

Includes both direct and indirect competitors

Unfair competitive advantage

"What special advantages does your firm bring to the marketspace?

Transaction Fee revenue models Example :

Describes how firm will organize work

Best business concepts will fail if not properly marketed to potential customers

As company grows, hiring moves from generalists to specialists

Has experience in implementing business plans

"What types of organizational structures within the firm are necessary to carry out the business plan?"

Can give credibility to outside investors

What kind of backgrounds should the company's leaders have?"

Can make the business model work

Sales revenue models Example :

First-mover advantage

How will you earn money

Reduction of product search, price discovery costs

What marketspace do you intend to serve and what is its size?"

Subscription revenue models Example :

Facilitation of transactions by managing product delivery

Details how a company intends to enter market and attract customers

Personalization/customization

Major types of revenue models:

Major types of revenue models:

Defined by revenue potential in each market niche in which company hopes to compete