Business Models of Popular Websites Essay

4860 Words May 15th, 2013 20 Pages
Business Models Of Popular Websites Business Essay
The business model can simply be known as a working description that includes the general details about the operations of a business. Every business model consists of a number of factors. Some of these factors are expenses, revenues, operating strategies, corporate structure, and sales and marketing procedures. In general, anything that has to do with the day to day functionality of the corporation can be said to be part of the business model.
In every business model, there is a need to address internal factors that relate to the ongoing operation of the company. These factors relating to operation involve defining the departments and the divisions within the company, along with the
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2. Market Segment
This is in regards to identifying the group to target, keeping in mind that different market segments have different needs and requirements. Sometimes the true potential of an innovation is unlocked only when a different market segment is targeted. 3. Value Chain Structure
This is basically the firm's position and activities in the value chain and how the firm will capture part of the value that it creates as per the market value structure. 4. Revenue Generation and Margins
This components deals with how revenue is generated (Eg:- sales, leasing, subscription, support, etc.), the cost involved and forecasting as per the cost structure, and target in regards to the profit margins. 5. Position in the Value Network
Identification of the position of the product/ service offered by a company in the market can be done by identifying the position of the competitors, compliment-ors , and any network effects that can be utilized to deliver more value to the customer. 6. Competitive Strategy
This is when the company will plan and develop a strategy towards sustainable growth and use it to improve the enterprise's competitive position in the market and in some cases even win the loyalty of the customer.
AMAZON.COM
Amazon was founded by Jeff Bezos, a student from Princeton University graduated in computer science and electrical

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