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[C] E-Business Strategy/ Models

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E-Business Model of Amazon (2) Co-branding ( ) Partnership Include Borders, Circuit City, Target, and Toys R Us ( ). These ... – PowerPoint PPT presentation

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Title: [C] E-Business Strategy/ Models


1
C E-Business Strategy/ Models
  • ????
  • Judy Strauss, Adel I. El-Ansary, and Raymond
    Frost, E-Marketing, Prentice Hall, 2006.
  • Chap 2 Strategic E-Marketing.
  • Chap 12 Distribution.
  • Ward Hanson, Principles of Internet Marketing.

2
Environment, Strategy, and Performance (ESP Model)
Legal
-
Ethical

Technology

Internet

E

Competition


Other factors

Markets


SWOT

E
-
Business
S

Strategy/

E
-
Marketing
Implementation Marketing Mix
Model

Strategy


P

Performance Metrics

3
Overview
  • The Amazon Story
  • E-Business Strategy
  • E-Business Model
  • Strategic E-Business Models
  • Activity Level E-Business Models
  • Business Process Level E-Business Models
  • Enterprise Level E-Business Models
  • Pure Play
  • Web Business Models

4
1. The Amazon Story
  • Amazon (http//www.amazon.com)
  • Jeff Bezos?1995?7???
  • A pure-play dot-com (?????) survivor.
  • Adapt its competencies into many different
    e-business models.
  • ??????IT,????????????????????
  • ??????????,???????
  • ???????????,????????

5
E-Business Model of Amazon
  • (1) Online Retailing
  • Amazons core business Sales of books, music,
    and videos.
  • After 7 years of effort, Amazon.com finally
    proved this model can be profitable.
  • Learn a good, but tough (??) , formula for
    operating profitability.
  • 2002-2003, Amazon has cut inventory by 25,
    tightened (??) operations, and doubled sales.

6
E-Business Model of Amazon
  • (2) Co-branding (????) Partnership
  • Include Borders, Circuit City, Target,
    and Toys RUs (?????).
  • These partnerships involve Amazons licensing of
    online storefront technology or earning fees for
    customer service and product delivery.
  • This model is more profitable than retailing
    model.
  • Because its less costly automated services,
    e-commerce experience, or huge customer base.
  • Amazons objective add 2 new partners /1 year.

7
?????http//www.toysrus.com
8
E-Business Model of Amazon
  • (3) Affiliate Program (????)
  • Amazon create firstly. (called Amazon Associates)
  • Giving 600,000 Web site owners a 15 commission
    (????) for referring (??) customers who purchase
    at Amazon.
  • (4) Auction (??)
  • Customers can auction items on the site.

9
Join Associates
10
2. E-Business Strategy
  • Corporate Strategy
  • It is concerned with how the firm will achieve
    its objectives.
  • Strategic planning the managerial process of
    developing and maintaining a viable (???) fit
    between the organizations objectives, skills,
    resources and its changing market opportunities.
  • E-Business Strategy
  • Corporate Strategy Information Technology

11
Strategic Objectives
  • The firm sets objectives such as
  • Growth. How much can the firm reasonably expect
    to grow in terms of revenues, and how fast?
  • Competitive position. How should the firm
    position itself against other firms in the
    industry? Viable positions are
  • Industry leader (Microsoft),
  • Price leader (Priceline.com),
  • Quality leader (Mercedes),
  • Niche firm (Google.com),
  • Best customer service (Dell.com).

12
Strategic Objectives (Cont.)
  • Geographic scope. Where should the firm serve its
    customers on the continuum (????) of local to
    multinational?
  • Other objectives. Companies often set objectives
    for the number of industries they will enter, the
    range of products they will offer, the core
    competencies they will foster (??), and so on.

13
3. E-Business Model
  • Business Model
  • A method by which the organization sustains (??)
    itself in the long term, and includes its value
    proposition (????) for partners and customers as
    well as its revenue streams (????).
  • A firm will select one or more business models
    as strategies to accomplish enterprise goals.
  • E-Business Model
  • Business Model Information Technology

14
4. Strategic E-Business Models
  • Level of Commitment to E-business

15
E-Business Model Classification
Activity Level Activity Level
Product/ service Content publisher
Price Pricing strategies
Place (Distribution) E-mail
Place (Distribution) Online purchasing
Place (Distribution) Order processing
Promotion Online advertising
Promotion Online sales promotions
Information gathering Business Intelligence
  • The lowest level of the pyramid
  • Affects individual business activities that can
    save the firm money if automated using IT or
    Internet.

16
E-Business Model Classification
Business Process Level Business Process Level
E-Business ?????? ERP
E-Business ?????? CRM
E-Business ?????? SCM
????? ???? KM
????? ???? Database Marketing
????? ???? Mass Customization
????? ?? Community Building
????? ?? Affiliate Programs
  • The second level of the pyramid
  • Changes business processes to increase the firms
    effectiveness.

17
E-Business Model Classification
Enterprise Level Enterprise Level
EC (Online Transactions ) Direct Selling (ex Dell)
EC (Online Transactions ) Content Sponsorship Online (sell advertising)
Portal Portal
Broker Models (?????) Online Exchange (B2B)
Broker Models (?????) Online Auction (B2C)
Agent Models (?????) Representing Sellers
Agent Models (?????) Representing Sellers
????? Virtual Mall
????? Infomediary
  • The enterprise level of the pyramid
  • The firm automates many business processes in a
    unified system- demonstrating a significant
    commitment to e-business.

18
  • Agent Models Representing Sellers (?????)
  • Selling Agents. Represent a firm to help sell
    products.
  • Manufacturers Agents. Represent manufacturing
    firms.
  • Catalog Aggregator. Brings together many catalog
    companies to create a new searchable database of
    products for buyers.
  • Metamediary. Represents a cluster of
    manufacturers, online retailers, and content
    providers organized around a life event (???) or
    major asset purchase (???).

19
  • Agent Models Representing Buyers (?????)
  • Shopping Agents. Help individual consumers find
    specific products and the best prices online.
  • Reverse Auction. Allows individual buyers to
    enter the price they will pay for particular
    items at the purchasing agents Web site, and
    sellers can agree or not.
  • Buyer Cooperative (????, or Buyer Aggregator).
    Pools many buyers together to drive down the
    price on selected items. (????????????)

20
  • Virtual Mall
  • is similar to a shopping mall in which multiple
    online merchants are hosted at a Web site.
  • Infomediary (?????)
  • is an online organization that aggregates and
    distributes information.
  • E.g. market research firms.

21
E-Business Model Classification
  • Businesses that began on the Internet, even if
    they subsequently added a brick-and-mortar (??)
    presence.
  • Pure plays face significant challenges.
  • They must compete as new brands and take
    customers away from established brick-and-mortar
    businesses.
  • One way to change the rules is to invent a new
    e-business model, as Yahoo! and eBay did.

Pure Play
Pure Play
22
5. Web Business Models
  • ???????????????
  • Business models can be based on improvements in
    product or service
  • ????????????????
  • Business models can be based directly on
    generating revenue
  • ?????????????

23
5.1 Improvement-Based Business Models
(1) Enhancement
(2) Efficiency
  • Reduce costs
  • Free trial
  • Build brand
  • Build category
  • Enhance quality

(3) Effectiveness
  • Support dealers
  • Support suppliers

24
5.2 Revenue-Based Business Models
(1) Provider Pays
(2) Customer Pays
???????????? ??????????
??B2B?B2C?????
  • Product sales
  • Pay-per-use
  • Subscriptions(???????)
  • Bundle sales (????)
  • ??????????????????????
  • Sponsorship (????)
  • Alliances (????)
  • Banner advertising
  • Prospect fees (?????????)
  • Sales commissions
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