what really is a business model anyway

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e-Business Models    

e-Business Models Evaluation

Kjel Gotberg

EBUS 500.1

e-Business Principles and Practices

University of Phoenix Online

Facilitator: Professor Susan Brozas

29 September 2004


Abstract

According to Richard Trambly, writer for Computer World Magazine, “An e-business model is an approach to conducting electronic business through which a company can sustain itself and generate profitable revenue growth. The business model spells out how a company plans to make money online and how it's competitively positioned in an industry.” This paper will examine three websites that are geared to different populations.  First, we will examine a business to business site (B2B), secondly a business to consumer (B2C) site and lastly a site for a non-profit agency.  This paper will glance at the different models that each company is using and how they utilize their online presence to generate the offerings desired by their consumers.


The increasing complexity of Internet and Web technologies and their rapid evolution are imposing a Herculean challenge for information technology managers.  They are expected to achieve optimal utilization of their existing information system for business performance while ensuring integration of the latest Internet and Web technologies in their enterprise information technology architectures.  At the same time, they must meet the expectations of business managers who need to create and sustain innovative business value propositions to keep up with the changing competitive environment and customer needs.

Not unexpectedly, companies are realigning their product and service platforms into “e-business solution architectures” that can better address the needs of improved customer relations and enhanced financial conditions for the company overall.  The greater levels of service and cost reductions are required across all areas of the business and diversities of technologies.  There are many models that address these needs and the determination of which one to use is as important as who it is being intended for.  

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The three major areas of e-business are business to business, business to consumer, and consumer to consumer.  B2B models are not strictly sales oriented they incorporate tools to manage supply chain and distribution logistics, furthermore strict B2B websites are typically a way for companies to interact with suppliers and distributors. Obviously, B2C sites are focused upon sales from the distributor typically to the end consumer, there is some space added for feedback and customer support but the emphasis is placed upon sales.  C2C sites are much like B2C, except many of these sites are auction oriented and maintain little feedback ...

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