E-Commerce Module 4

Front 1

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

Back 1

BUSINESS MODEL

Front 2

Describes a firm’s business model

Back 2

BUSINESS PLAN

Front 3

A business model that uses/leverages unique qualities of Internet, Web and mobile platform

Back 3

E-COMMERCE BUSINESS MODEL

Front 4

EIGHT KEY ELEMENTS OF A BUSINESS MODEL

Back 4

1. Value proposition

2. Revenue model

3. Market opportunity

4. Competitive environment

5. Competitive advantage

6. Market strategy

7. Organizational development

8. Management team

Front 5

An element that answer the question: Why should the customer buy from you?”

Back 5

VALUE PROPOSITION

Front 6

An element that answer the question: How will you earn money?”

Back 6

REVENUE MODEL

Front 7

Major types of revenue model

Back 7

Advertising revenue model

Subscription revenue model

Freemium revenue model

Transaction fee revenue model

Sales revenue model

Affiliate revenue model

Front 8

A revenue model where a company provides a forum for advertisements and receives fees from advertisers (Yahoo, Facebook, Instagram)

Back 8

ADVERTISING REVENUE MODEL

Front 9

A revenue model where a company offers it users content or services and charges a subscription fee for access to some or all of its offering (Netflix, Spotify)

Back 9

SUBSCRIPTION REVENUE MODEL

Front 10

A revenue model where companies give away a certain level of product or services for free, but then charge a subscription fee for premium levels of the product or service (Adobe PDF, Flickr)

Back 10

FREEMIUM REVENUE MODEL

Front 11

A revenue model where a company receives a fee for enabling or executing a transaction. (eBay)

Back 11

TRANSACTION FEE REVENUE MODEL

Front 12

A revenue model where a company derive revenue by selling goods, content, or services to customers. (Amazon, Lazada, Shopee, Zalora)

Back 12

SALES REVENUE MODEL

Front 13

A revenue model where companies steer business to an “affiliate” receive a referral fee or percentage of the revenue from any resulting sales. (Epinions, MyPoints)

Back 13

AFFLIATE REVENUE MODEL

Front 14

An element that answers the question: “What marketspace do you intend to serve and what is its size?

Back 14

MARKET OPPORTUNITY

Front 15

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

Back 15

MARKETSPACE

Front 16

T/F

Market opportunity is typically divided into smaller niches

Back 16

TRUE

Front 17

a business model element that answers the question: "Who else occupies your intended marketspace?”

Back 17

COMPETITIVE ENVIRONMENT

Front 18

Other companies selling similar products in the same marketspace

Back 18

COMPETITIVE ENVIRONMENT

Front 19

It answers the question: "What special advantages does your firm bring to the marketspace?”

Back 19

COMPETITIVE ADVANTAGE

Front 20

It answers the question: How do you plan to promote your products or services to attract your target audience?”

Back 20

MARKET STRATEGY

Front 21

T/F

Best business concepts will SUCCEED if NOT properly marketed to potential customers

Back 21

FALSE- FAIL

Front 22

details how a company intends to enter market and attract customers

Back 22

MARKET STRATEGY

Front 23

It answers the question: “What types of organizational structures within the firm are necessary to carry out the business plan?"

Back 23

ORGANIZATIONAL DEVELOPMENT

Front 24

a business model element that describes how a firm will organize work

Back 24

ORGANIZATION DEVELOPMENT

Front 25

T/F

In organization development hiring moves from specialist to generalist

Back 25

FALSE- generalist to specialist

Front 26

It answers the question: “What kind of backgrounds should the company’s leaders have?”

Back 26

MANAGEMENT TEAM

Front 27

T/F

There is no correct way of categorizing e-commerce business model

Back 27

TRUE

Front 28

T/F

Similar business models appear in more than one sector

Back 28

TRUE

Front 29

T/F

Some companies use multiple business models

Back 29

TRUE

Front 30

Online version of traditional retailer

Back 30

E-TAILER

Front 31

T/F

Revenue model of e-tailer is sales

Back 31

TRUE

Front 32

T/F

E-tailer has high barriers to entry

Back 32

FALSE-LOW BARRIERS

Front 33

a B2C Model that provides online environment (social network) where people with similar interests can transact, share content, and communicate

Facebook, LinkedIn, Twitter, Pinterest

Back 33

COMMUNITY PROVIDER

Front 34

A B2C business model that search plus an integrated package of content and services

Examples: Yahoo, MSN, AOL, Google

Back 34

PORTAL

Front 35

A B2C business model that create digital environment where buyers and sellers can meet and transact

Examples: Priceline, eBay

Back 35

MARKET CREATOR

Front 36

A B2C business model that Process online transactions for consumers

Back 36

TRANSACTION BROKER

Front 37

A b2C Model that create digital environment where buyers and sellers can meet and transact

Examples: Priceline, eBay

Back 37

MARKET CREATOR

Front 38

a B2C business model with Online services such as: Google—Google Maps, Gmail, and so on

Back 38

SERVICE PROVIDER

Front 39

A business model which has Net marketplaces such as:

E-distributor

E-procurement

Exchange

Industry consortium

Private industrial network

Back 39

B2B BUSINESS MODEL

Front 40

A b2b business model with a version of retail and wholesale store, MRO goods, and indirect goods

Back 40

E-DISTRIBUTOR

Front 41

A b2b business model that creates digital markets where participants transact for indirect goods

Back 41

E-PROCUREMENT

Front 42

A b2b business model:

Independently owned vertical digital marketplace for direct inputs

Back 42

EXCHANGES

Front 43

A b2b business model:

- Industry-owned vertical digital marketplace open to select suppliers

- More successful than exchanges

Back 43

INDUSTRY CONSORTIA

Front 44

A b2b business model:

Digital network used to coordinate among firms engaged in business together

Typically evolve out of company’s internal enterprise system

Back 44

PRIVATE INDUSTRIAL NETWORK

Front 45

Set of activities performed by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs into final products and services

Back 45

INDUSTRY VALUE CHAINS

Front 46

T/F

Internet reduces cost of information and other transactional costs

Back 46

TRUE

Front 47

T/F

Industry value chain leads to greater operational efficiencies, higher cost, prices, decrease value for customers

Back 47

FALSE

Front 48

T/F

industry value chains plan for achieving superior long-term returns on capital invested: that is, profit

Back 48

TRUE

Front 49

FIVE GENEREIC BUSINESS STRATEGIES

Back 49

Product/service differentiation

Cost competition

Scope

Focus

Customer intimacy

Front 50

technologies that underpin a business model disruption

Back 50

Disruptive technologies

Front 51

a business model disruption that is driven by changes in information technology

Back 51

Digital disruption

Front 52

technologies that enable the incremental improvement of products and services

Back 52

Sustaining technologies

Front 53

The entrepreneurs and their business firms that lead a business model disruption

Back 53

DISRUPTORS

Front 54

Making products and services unique and different in order to distinguish them from those of competitors

Back 54

DIFFERENTATION

Front 55

Offering products and service at a lower cost than competitors

Back 55

COST COMPETITION

Front 56

Competing in all markets around the globe, rather than merely in local, regional, or national markets

Back 56

SCOPE

Front 57

Competing within a narrow market or product segment

Back 57

FOCUS/ MARKET NICHE

Front 58

Developing strong ties with customers

Back 58

CUSTOMER INTIMACY